Equipment floater insurance

Equipment floater insurance covers portable equipment and tools that are taken from one place to another, such as a worksite.

What is equipment floater insurance?

Equipment floater insurance covers the tools and moveable equipment your business uses, in case of damage or theft.

It’s sometimes referred to as contractor’s tools and equipment insurance, and is often used by those in maintenance, repair, and construction trades to cover mobile equipment that is taken to jobsites.

This includes a broad array of equipment such as backhoes, bulldozers, mowers, forklifts, and portable tools. This kind of equipment isn’t covered by business property insurance because it’s rarely kept in the same place and faces unique risks in transportation damage and theft.

Floater insurance covers common worksite risks such as fire, theft, vandalism, and water damage. It may also cover equipment that is leased or loaned to others, rental reimbursement, and loss of business income.

It’s a type of inland marine insurance coverage

Equipment floater insurance is a type of inland marine insurance, which covers damage and theft of business property, such as products, tools, and equipment, while in transit over land or stored at an off-site location.

It should not be confused with installation floater insurance, which is also a type of inland marine insurance, and covers the transportation and storage of building materials such as drywall, plumbing, and insulation.

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Who needs equipment floater insurance?

While those in the construction trades are obvious candidates for floater insurance, this coverage can also be used by those in the creative fields. Audio and visual recording equipment, musical instruments, and theatrical props could all be covered by a floater insurance policy.

Equipment floater vs. commercial insurance

A commercial property insurance policy covers your business property and fixed equipment at the location listed in the policy. Equipment floater insurance covers your gear while at or traveling to a worksite.

A floater policy can often be added to your commercial property insurance. Floater insurance can also be added to your business owner’s policy (BOP), which combines general liability insurance and commercial property insurance.

What types of equipment are excluded by floater insurance?

Vehicles owned by your business would typically be covered by commercial auto insurance. Floater insurance may not include cranes, logging, and mining equipment, which could require coverage via a mobile equipment endorsement.

It also doesn’t include third-party liability for property damage or injury to others, which is included in general liability coverage.