Installation Floater and a Dispute over Covered Property

Our question concerns a dispute as to whether wiring installed by our insured, an electrician covered by an installation floater, is covered property. The insured was installing wiring in an apartment building under construction when, unknown to him, the wires in several of the apartment units were cut, perhaps by vandals. The wires were then refastened to the studs so that the cuts were hidden behind the fastening clips. The damage was not discovered until the electricians began their finishing work and the apartments had already been sheet rocked and painted.

The insurer is taking the position that the property that was damaged belonged to the general contractor and not to our insured since it was installed. We believe that the floater language makes the wiring the property of the insured. The floater defines covered property as “materials (including labor) and supplies … to be used in the installation … while at a job site and intended to become a permanent part of the project ….” Since the insured's installation work was not completed when the loss occurred, we contend that the damaged property fits this definition. What is your opinion?