What does an Installation Floater insurance policy cover?

An Installation Floater insurance policy specifically covers machinery and equipment while it is in the process of being installed, during transit to the installation site, and while it is being tested before it is put into service. This coverage is crucial because it addresses various risks associated with the installation phase, including potential damage or loss that could occur as equipment is moved or tested.

This type of policy is particularly important for contractors and businesses involved in large installation projects, as it provides protection from unforeseen events that could halt progress or lead to financial loss. By giving broad coverage during the critical phases prior to the equipment becoming operational, the policy ensures that the investments made in such projects are adequately safeguarded.

The other choices do not accurately reflect the scope of an Installation Floater. For instance, finished products at retail locations do not relate to machinery in the installation phase, items in storage at a warehouse fall under a different type of insurance known as property coverage, and damage to personal property of employees typically pertains to liability or workers' compensation insurance. Therefore, option B clearly aligns with the specific intent and coverage parameters of an Installation Floater policy.