What type of coverage does a heating and cooling contractor need upon completing work on a newly renovated building that has not yet been accepted by the owner?

The correct answer is an installation floater, which is specifically designed to cover equipment and materials in transit or in the process of installation. Once a contractor has completed work on a newly renovated building, but before the owner has accepted it, there are various risks involved, such as damage to materials, tools, or equipment that are part of the installation.

An installation floater provides coverage for these items during the installation phase, protecting the contractor from potential losses or damages that could occur before the project is officially completed and accepted. This type of insurance is essential for contractors as it ensures that they do not bear the full financial burden of any unforeseen incidents during this transitional period.

Liability insurance, while crucial for protecting against third-party claims arising from injuries or property damage, does not specifically cover the contractor's own work or materials while they are in the process of being installed. General property insurance typically covers a broader range of property but may not include specialized coverage for items in installation. Builder's risk insurance is also important as it covers the property under construction, but it may not provide the same level of tailored coverage that an installation floater offers for the contractor's equipment or materials during an ongoing project.