Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Where does coverage apply with the Installation Floater Rider?

1. Only while in storage

2. During installation until accepted

3. Only at the warehouse

4. Only during transport across oceans

The correct answer is: During installation until accepted

The Installation Floater Rider provides coverage for equipment or materials that are in the process of being installed at a job site. This means that the coverage is active during the period when the items are being installed until they are officially accepted by the client or project owner. This type of coverage is crucial because it protects against potential damages that could occur during the installation phase, which can include accidents, theft, or damage caused by environmental factors. The other options misrepresent the scope of this coverage. Coverage does not extend solely to storage, as indicated in one option, nor is it restricted to the warehouse or specific transport scenarios. Instead, the essence of the Installation Floater Rider is to safeguard items during the critical installation phase, ensuring that any mishap occurring during this period is covered until the installation is completed and accepted. Thus, the correct choice accurately reflects the important role this coverage plays in the overall protection strategy for insured parties engaged in installation projects.