Installation floater insurance

Installation floater insurance covers movable property, such as building materials, while they are being installed or incorporated by a contractor during a construction project. This coverage is usually kept active until the property is put to its intended use or the work is approved by the client.

Installation floater insurance differs slightly from equipment floater insurance, which covers portable tools and machinery. Both are types of inland marine coverage, which protects the insured items wherever they go.

Installation floater insurance is a key risk management strategy for contractors, protecting your investment in materials against theft and other losses during a construction project. You may need it if you work in installation or construction, especially in professions like HVAC installation, electrical work, and renovation.

For example, an electrician might buy this insurance coverage for financial protection against theft of copper wire at a job site.

If your materials are damaged by fire, vandalism, or mishandling, you would be reimbursed for the loss, minus the deductible.

Builder’s risk insurance, also known as course of construction insurance, offers financial protection to construction companies, contractors, and subcontractors from losses at a construction site. It’s a type of property insurance that contractors buy before the building materials arrive and keep in place until the property is sold or turned over to the client.

Builder’s risk is more comprehensive, and typically more expensive, than installation floater insurance. However, some items such as HVAC and electrical systems could be excluded from a builder’s risk policy. A contractor might need to buy an installation floater insurance policy to be fully protected.

Some contractors buy a builder’s risk policy for larger projects, or when they’re the general contractor overseeing a job, and rely on installation floater coverage as needed. Subcontractors might rely on just an installation floater policy, as their risk may be limited to the materials under their control.

Many contractors use both types of insurance to cover property at a temporary job site. Builder’s risk covers the overall project, while installation floater insurance covers the materials and property to be permanently incorporated into the project.

If a fire or storm destroyed a building under construction, it would be covered under the builder’s risk insurance policy. If drywall, plumbing, insulation, or roofing materials were damaged before or during installation, the loss would be covered by installation floater insurance.

Complete Insureon’s easy online application today to compare quotes for business insurance from top-rated U.S. insurance providers. Once you find the right type of coverage for your small business, you can get a certificate of insurance in less than 24 hours.