What is Building Equipment Erection and Installation?
Building equipment erection and installation insurance covers contractors who install large mechanical or electrical systems in commercial or residential buildings. These contractors are responsible for placing and securing equipment such as elevators, HVAC systems, generators, or industrial machinery. While they do not manufacture the equipment, they must ensure that it is properly installed and operational before completing the job.
Who Needs It
This type of insurance is essential for contractors who specialize in installing heavy or complex building systems. It includes general contractors, subcontractors, and specialized installers working on short-term or long-term projects. Whether the job takes a day or stretches over a year, having proper coverage helps protect against potential risks during installation.
What It Typically Covers
Coverage usually includes:
- Installation floater: Protects equipment and materials while in transit, on-site, or during installation until the project is complete.
- General liability: Covers third-party bodily injury or property damage caused during installation activities.
- Workers’ compensation: Provides benefits to employees injured on the job, as required by state law.
Common Exclusions and Limitations
Policies often exclude:
- Damage from faulty workmanship or design errors
- Wear and tear or gradual deterioration
- Losses after the equipment has been tested and accepted by the client
It's important to review each policy for specific exclusions that may apply to your work.
Factors That Influence Cost
Several factors can impact the cost of building equipment erection and installation insurance:
- Type and value of equipment being installed
- Duration and location of the project
- Worksite safety practices
- Number of employees and payroll size
- Contractor’s claims history
Proof of Insurance & Compliance
Many clients and general contractors require proof of insurance before work begins. In most states, workers' compensation is mandatory if you have employees. General liability and installation floater coverage are often required by contract. Having the right documentation helps you stay compliant and win more project bids.
How to Get a Quote
To find the right coverage for your installation business, complete a quick online application and receive a customized quote. Get a quote today.
Frequently Asked Questions
What is an installation floater?
An installation floater is a type of inland marine insurance that covers equipment and materials from the time they leave your possession until installation is complete and accepted by the client.
Is general liability insurance enough for installation contractors?
No. While general liability covers third-party injuries and property damage, installation contractors also need an installation floater and workers’ compensation for full protection.
Do I need insurance if the project lasts only a few days?
Yes. Even short-term projects carry risks such as equipment damage or on-site injuries. Insurance helps protect your business regardless of project length.
What happens if equipment is damaged during installation?
If the damage is covered under your installation floater policy, the insurer may pay for repair or replacement, depending on the terms.
Is proof of insurance required for subcontracting?
Yes. Most general contractors will require proof of insurance before allowing you to begin work on their projects.
Still have questions? Talk to a local insurance expert.