What is the purpose of an installation floater in insurance?

The purpose of an installation floater is specifically to cover equipment that is being installed at a job site. This type of insurance is designed to protect materials and tools used in the installation process against risks that may occur before the installation is complete, such as theft, damage, or loss due to unforeseen events.

By providing coverage during the installation phase, it ensures that contractors can proceed with their work without the financial burden of potential loss. This type of coverage is essential for contractors and builders who are working on large projects, where the value of the equipment and materials can be significant and the risks associated with installation can be high.