What is a primary reason for using installation floaters?

Installation floaters are specialized insurance policies designed to provide coverage for property during the installation phase or while it is in transit to the installation site. The primary reason for utilizing installation floaters is to cover property at temporary storage locations, which can be crucial for businesses that deal with equipment, machinery, or materials that need to be transported and installed at specific job sites.

While other options may seem plausible, they do not accurately reflect the main purpose of installation floaters. For instance, installation floaters are not primarily intended to insure fixed location properties, as they focus on items that are on the move or yet to be fully installed. Furthermore, these policies do not limit coverage to completed construction sites, as their function is to protect property during the installation phase rather than after it has been completed. Finally, while reducing deductible sizes is an important consideration in insurance policies, it is not a primary reason for the adoption of installation floaters. The essence of installation floaters is to secure property during transit and temporary storage, ensuring that businesses are protected against loss or damage during the critical stages of installation.