The majority of commercial property policies do not cover what has been moved off of your business’s property or in transit from your site to the end destination. Therefore, many contractors encounter serious risks due to transporting needs and obtaining essential supplies and equipment. An Installation Floater policy can help manage risk in this circumstance. This policy protects your property during that in-between time from when it leaves your worksite to where it ends up.
The Basics
Whether you’re storing, shipping, or installation is pending, an Installation Floater will protect you from loss. Like a builder’s risk policy, an Installation Floater is a type of inland marine insurance; however, they differ by:
Scope of coverage
Verses the wider coverage of builders risk, Installation Floaters address specific items that are slated to be installed.
Price
Since it is much more comprehensive, builder’s risk insurance also costs far more than Installation Floaters.
Insured Party
General contractors can typically benefit from builder’s risk insurance but an Installation Floater is the smarter choice for a task-specific contractor or subcontractor.
Whis is Covered?
With an Installation Floater, unless specifically excluded in the policy, all risks or perils are covered. Coverage commonly covers:
- Explosion
- Fire or lightning
- Vandalism
- Damage from vehicles or aircraft (excluding those owned by the business)
- Theft
- Windstorm or hail
- Water damage, sprinkler leakage, or burst pipes (excluding damage from floods)
When it’s Needed
You don’t want to have coverage gaps for specific types of work or materials and equipment. For those performing a specific task or project, even if part of a larger project that is covered by builder’s risk insurance, it is crucial to consider an installation floater.
Installation Floater policies offer first-party coverage so if loss occurs, a contractor can receive payment from their insurer directly, with no reimbursement lag, and therefore no cash flow issues.
The policy is also appropriate for more complex jobs. These include installing:
- Above-ground and underground tanks
- Elevators
- Pipelines
- High-tension poles
- Communication towers
- Many contractors are not sure if their standard coverage is sufficient given a project’s risks, which is why an Installation Floater is important.
Familiarize yourself with the type of coverage required for your specific project and property that needs coverage. Speak with your agent about what types of construction insurance are right for you. Those working with materials, supplies, or equipment in transit or waiting to be installed would likely benefit from this protection.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
