(quoted from post at 06:03:23 07/07/16) A fellow who was a laundry equipment mechanic gave me a 20 amp 120 V 1:1 transformer. I suppose it was to isolate a circuit for safety reasons. I asked a competent electrician about it and he said it offered no safety protection and would be dangerous to use but he would like to have it. Until I was told that it offered no protection I had assumed that it provided protection when working on a bench that was connected to earth ground.
Isolation transformers can be used for many, many reasons.
Here in an Electrical Engineering lab, we may use one to isolate a measurement device like an oscilloscope from Earth ground so that we can use the scope to measure between two different voltages in a circuit without grounding either one.
We may also use them to isolate test equipment that has enough leakage current (by design) to trip a GFCI (Ground Fault Circuit Interrupter) from a GFCI-equipped outlet, so that we can use that piece of test equipment.
In a hospital, an isolation transformer may be used to isolate patient-connected electronics from those same leakage currents. One electronic device may have a safe leakage current level, but connect a bunch of them to the same patient, and it could stack up.
In all of those cases, there is no blanket statement that can say that they have created a condition that has more or less "protection" than you can get from a good old wall outlet.
In every circumstance, the level of protection depends on whether a person can become the preferred path of current from a conductor at one voltage to a conductor at another voltage.
In short, protection is only provided by the operator knowing what potentials he or she is putting across their body at all times.
If somebody gave me an isolation transformer, the first thing I would do is measure the resistance between all of the output terminals to all of the input terminals, to see if ground has been jumpered across the transformer. I would also measure the resistance between all of the input terminals and each other, to see if either of the "neutrals" are bonded to "ground".
With that knowledge, I would then use accordingly. To use accordingly, I would need to know if surfaces that I could touch while using the isolation transformer are grounded or not. I would also need to know if any equipment being connected to the isolation transformer is a "Class I" (needs an Earth ground to be safe) or a "Class II" (has double or reinforced insulation, so doesn't need Earth ground to be safe.)
If you don't know how to use that knowledge, then an isolation transformer indeed offers you no protection.
When people talk about electricity, there are so many blanket statements thrown around. For example. "Voltage doesn't kill. Current kills." Most of these statements are half-truths at best. Trust none of them
Every situation is unique.