Q
Our client, a heating and air conditioning contractor, keeps heating units in his shop that he takes and installs at customers' locations. He recently suffered damage to some of those units in his shop. The problem is that the peril is not covered by his business and personal property coverage form, but is covered by his installation floater. We write both policies with the same company.
We have turned the claim in to the company under the installation floater. They have denied the claim.
Is this denial correct?
Pennsylvania Subscriber
A
Unfortunately, the installation floater provides no coverage for your client's loss. The form clearly says that there is no coverage for property located on premises owned by the insured.
The purpose of the floater is to compliment the building and personal property form. That form gives on-premises coverage to the insured's business personal property; the installation floater covers the property when the insured takes his products off-premises to install at another location.
Incidentally, we would suggest that the building and personal property form and the installation floater be written for the same perils, if this has not already been done.
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