What is an installation floater and should your construction business insurance coverage include this valuable coverage? A standard property insurance policy does not provide coverage for materials being installed. Contractors could be left unprotected if materials intended for a
Installation Floater Coverage Details
An installation floater is a form of builders risk insurance that provides coverage for property intended for installation. This includes property belonging to the contractor or the property of others for which the contractor is legally liable. This property is covered while located at the job site, at a temporary storage location, or during transit. The coverage territory is typically described as “The United States (sometimes the continental US), and Canada”.
Think of an installation floater as a more narrowly focused builders risk policy. While a builders risk policy provides coverage for partially completed structure (or possibly the structure being renovated), an installation floater is intended to cover only the specific items to be installed by a contractor. For example, a general contractor or developer might purchase a builders risk policy to protect the construction of a large commercial building.
While a builders risk policy is typically endorsed to cover all parties involved in a construction project, the installation floater, in contrast, protects only the named insured. Also, an installation floater is usually written on a blanket basis for all work performed, whereas a builders risk policy covers a specific construction project.
Installation Floater Claim Examples
The following are actual claims that were covered by installation floater policies issued to Safeguard Insurance customers. Keep in mind that every claim is unique and the installation floater policy form varies between insurance carrier.
Marble Damaged in Transit
A contractor was hired to fabricate and install very expensive marble countertops in a high-end custom home. The marble was sourced from Greece and quarried at the same location so the color and grain matched from slab to slab. The countertops were fabricated at the contractor’s shop and carefully loaded onto a truck for delivery and installation. Somehow during transit, one of the countertop pieces cracked into two sections. The damage was irreparable and required a complete replacement. To make matters worse, the stone supplier informed the contractor that they could not guarantee a replacement slab would match color and grain. In this case, the installation floater policy paid for the cost to fabricate all new countertops.
Stolen Shop Equipment
Our customer was paid to procure and install workstations and shop equipment for a diesel truck repair shop. The equipment was ordered and waiting installation at the insured’s warehouse location. The project was delayed for a few months and, to free up space, the insured leased another location to temporarily store the equipment.
A few weeks after moving the equipment into storage, someone broke into the location and stole approximately $50,000 worth of equipment and materials. The installation floater policy paid for the theft loss.
Get an Installation Floater Quote
If would like additional information about the benefits of an installation floater policy, or to obtain a no-obligation quote, please contact the professionals at Safeguard Insurance. We can help you understand the difference between builders risk and installation floater and which policy is appropriate for your business.
Additional Resources: Installation Floater Coverage Form (Liberty Mutual)