What is the purpose of an installation floater?

The purpose of an installation floater is specifically to provide coverage for property belonging to a contractor or others that is intended to become a permanent part of a structure. This type of insurance is particularly important during the construction phase, as it protects materials and equipment that are in transit or being stored on a job site before they are incorporated into a building or other structures. It ensures that if these items are damaged or lost during installation, the contractor has financial protection, allowing for the completion of the project without significant financial setbacks.

The focus of the installation floater on items meant to be part of a larger construction project distinguishes it from other types of coverage. For example, while business income loss coverage pertains to interruptions in revenue, and tool and equipment coverage addresses the loss of contractors’ tools rather than materials that become part of the building, the installation floater specifically targets the risk of loss for materials and equipment intended to enhance or integrate into the structure itself.