Equipment floater insurance

Equipment floater insurance covers your business's moveable equipment and tools against damage, theft, or loss that occurs away from your primary business location.

It’s sometimes referred to as tools and equipment insurance, and is vital for businesses in the construction, maintenance, and repair trades that regularly take mobile equipment to jobsites.

This includes a broad array of equipment including heavy machinery (like backhoes, bulldozers, and forklifts) and smaller portable tools. This equipment isn’t covered by standard commercial property insurance because it’s rarely kept in the same place and faces unique risks like damage during transportation and theft at off-site locations.

Floater insurance protects against risks like fire, theft, vandalism, and water damage at jobsites. It may also include coverage for leased or loaned equipment, rental reimbursement for a temporary replacement, or loss of business income if damage halts operations.

Equipment floater insurance is a type of inland marine insurance, which covers property that is transportable (such as products, tools, and equipment) against damage or theft while in transit over land or stored at off-site locations.

It should not be confused with installation floater insurance, which covers the transportation and storage of building materials and supplies (such as HVAC systems, drywall, plumbing, and insulation) before they are permanently installed.

While construction, installation, or landscaping businesses are clear candidates for floater insurance, this coverage benefits any small business that moves expensive equipment.

This included creative professionals – a floater policy can cover audio and visual recording equipment, musical instruments, and theatrical props.

Standard commercial property insurance covers your business property and fixed equipment only at the specific business location listed on the policy. Equipment floater insurance covers your moveable gear while it's at a jobsite or traveling between locations.

A floater policy is often available as an add-on (or endorsement) to your commercial property policy or your business owner’s policy (BOP), which combines general liability insurance and commercial property coverage.

Vehicles owned by your business are typically covered by commercial auto insurance. Floater insurance may exclude cranes, logging machinery, or mining equipment, which could require separate coverage through a mobile equipment endorsement.

Importantly, equipment floater insurance does not include third-party liability for property damage or injury to others, which is included in your general liability policy.