What do you need to know about an installation floater?
An Installation Floater covers materials, machinery, equipment and property which will become a permanent part of a project. An Installation Floater can be written on its own or as part of a Package Policy that also includes Property and Commercial General Liability coverages.
Can a builders risk policy cover an installation floater?
Even if a builders risk policy covers the type of work being performed, a contractor will likely have to absorb a share of the policy’s deductible in the event of a claim. Depending on the terms of the builders risk policy, it can be more cost effective for a contractor to rely on an installation floater.
What kind of losses are covered by installation floaters?
Unless covered through an endorsement, installation floaters may exclude losses caused by earthquakes, volcanic eruptions, floods, sewer backups, governmental action, nuclear hazards, war or military action, employee theft, or errors and omissions.
Can a tree be included in an installation floater?
Trees, shrubs and plants are also commonly excluded from installation floaters. If possible, contractors that perform landscaping installations should have their policy amended to specifically cover this type of property.
Can a contractor have a property floater policy?
Most property policies provide very limited coverage for property away from the premises or on a vehicle. This can be a problem for a contractor, who often has a large amount of property exposed to loss at job sites or en route to job sites. An Installation Floater is the solution.
Which is better installation floater or Builders Risk Insurance?
Generally, installation floater is less expensive than builders risk insurance because of its more narrow coverage. However, it could leave the contractor more vulnerable to losses that aren’t covered.