I insure a commercial glass installation contractor.  The majority of what the insured keeps on their premises are materials that are dedicated to a specific job/project.  If the insured suffered a loss (covered peril) of these materials while being stored at their premises, would the installation floater cover the materials or would this fall under BPP?

Georgia Subscriber

In the ISO Installation Coverage Form IH 00 73 12 13, covered property means property situated as specified in the Declarations for installation at any described premises.

Covered property does not include property on the insured's premises unless it is intended to be installed at the described job site. It also does not include any tools and equipment. It does not include any property that has been accepted by the purchaser, or any property in which the insured no longer has an interest.

Based on the coverage wording, if the materials are designated to a specific job site that is scheduled in the Declarations, then the installation floater should cover their loss. Otherwise, the loss would fall under the BPP as Personal Property of Others. If the materials are not owned by others, but by the insured, then they would be “stock” or personal property owned by the insured and used in their business.