What is the purpose of an 'installation floater' in insurance?

An installation floater in insurance serves to protect equipment and machinery during the installation process at a job site. This type of policy ensures that valuable equipment is covered against potential risks or damages while it is being installed, a critical phase where the equipment is particularly vulnerable to various hazards, including theft, damages, or accidents.

While options relating to machinery in transit, completed buildings, and raw materials pertain to specific types of coverage, they do not encapsulate the unique purpose of an installation floater. This insurance is distinct in focusing on the transitional period during installation, addressing potential risks that are not covered under different types of policies that are meant for other stages such as transportation or completion of construction.