What kind of insurance would a contractor need for an air-conditioning unit before installation?

A contractor would need an installation floater for an air-conditioning unit before installation because this type of insurance specifically covers materials and equipment that are in transit or set aside for installation. An installation floater provides protection against loss or damage to the insured property while it is not yet part of the completed project. This is crucial for contractors who handle valuable equipment and materials, like an air-conditioning unit, since it ensures that financial losses are minimized if any issues arise before the installation is finalized.

General liability insurance primarily protects against claims of bodily injury or property damage arising from the contractor's operations but does not specifically cover materials awaiting installation. Property insurance typically covers owned property that is already in use but would not provide coverage for items before they are installed. Equipment breakdown insurance focuses on coverage for machinery and equipment malfunction rather than protecting items that are temporarily in storage or awaiting installation. Hence, the installation floater stands out as the most relevant type of coverage in this scenario.