Protecting Subcontractors: The Importance of Installation Floater Insurance

We know that as a subcontractor, you face many risks. From handling materials and equipment to transporting them to job sites, your property is constantly on the move and potentially exposed to unforeseen dangers. While commercial property insurance may not fully cover your assets once they leave your premises, there’s a solution that can offer you the protection you need: installation floater insurance.

What is installation floater insurance?

Installation floaters insure your materials, machinery, equipment, power tools, building materials, and supplies from the moment they leave your premises until the completion of the job. Your property is insured during storage at a temporary location, transit to the job site, staging or awaiting installation, the installation process itself, and even when it’s pending acceptance by a project owner or general contractor. Essentially, installation floaters safeguard your property until it becomes a permanent feature of a project or structure.

How is installation floater insurance different from builder’s risk insurance?

While both types of insurance provide similar coverage (as they fall under the category of inland marine insurance), there are some key distinctions. Installation floater insurance policies are typically purchased by subcontractors with a limited scope of work because they only cover the insured subcontractor’s portion of a project. For instance, if you’re working with high-value equipment or materials not covered by the builder’s risk policy, purchasing an installation floater might be necessary to ensure you’re adequately insured. Depending on the builder’s risk policy terms, relying on an installation floater can also be more cost-effective for subcontractors.

What does installation floater insurance cover?

These policies are known as “all risks” policies, meaning they cover all exposures unless explicitly excluded by the policy. Generally, installation floaters protect against losses caused by fire, theft, explosions, traffic accidents, vandalism, property damage, and various other perils. It’s comprehensive coverage that offers you peace of mind, knowing that your assets are safeguarded.

Contact us to discuss your specific property exposures and determine whether an installation floater is the right choice for you. Remember, protecting your assets is key to your success. So don’t leave it to chance—get the coverage you need and ensure your business thrives in the face of potential risks.