Installation Floater
Inland marine coverage for materials and equipment during transit and installation at a job site until the project is accepted by the owner.
What It Is
An Installation Floater is an inland marine coverage designed for contractors, installers, and suppliers that covers materials, equipment, and supplies during transit from the insured's warehouse to a job site and during installation until the project is completed and accepted by the property owner. It fills the gap between the insured's warehouse coverage and the property owner's building coverage.
The coverage applies from the time materials leave the insured's premises or a supplier's location, during transportation, while stored at the job site awaiting installation, during the installation process, and until the owner accepts the completed work. Once accepted, the installed materials typically become part of the building and are covered by the owner's property policy.
Installation floaters can be written on a per-project basis for large individual jobs or on an annual basis for contractors with ongoing installation work. They typically cover theft, fire, vandalism, weather damage, and accidental damage during installation but may exclude faulty workmanship.
Why It Matters for Brokers
Contractors and installers face a significant coverage gap between their own property coverage and their customer's property coverage. Materials in transit and during installation are often covered by neither policy. An installation floater bridges this gap and is essential for contractors who install high-value materials—HVAC systems, electrical equipment, flooring, cabinetry, and specialized machinery.
Real-World Example
An HVAC contractor is transporting and installing a $165,000 commercial HVAC system at a customer's new office building. During installation, a forklift accident damages the main air handler, causing $72,000 in damage. The contractor's commercial property policy does not cover property at customer sites. The customer's builders risk policy excludes the HVAC equipment because it has not been installed and accepted. The installation floater covers the $72,000 loss. Without it, the contractor absorbs the entire cost or faces a dispute with the customer over responsibility.
Common Mistakes
- 1Assuming the contractor's commercial property policy covers materials and equipment at job sites—most property policies exclude property at locations the insured does not own or lease.
- 2Relying on the customer's builders risk or property policy to cover the contractor's materials during installation without verifying the coverage actually exists.
- 3Not obtaining an installation floater for high-value installation projects where the materials in transit and during installation exceed the contractor's ability to self-insure the loss.
How brokerageaudit.com Handles This
brokerageaudit.com's Submission Intake identifies contractor and installer accounts and recommends installation floater coverage based on the reported value of materials typically in transit and at job sites. The Policy Checker verifies that contractor accounts with significant off-site installation work have appropriate installation floater or inland marine coverage in place.