What is Installation Floaters?
Installation floaters (sometimes called installation inland marine) are insurance policies that protect materials, equipment and fixtures while they’re in transit, stored on-site, or pending installation. This coverage fills gaps between a contractor’s builders risk policy and a standard commercial property policy by addressing transportation risks, on-site handling exposures, and the unique vulnerability of items during installation.
Who needs it
Typical purchasers include contractors, subcontractors, specialty installers, and equipment suppliers working on construction or retrofit projects. Owners, retailers, and event operators who ship and install AV systems, commercial kitchen units, or machinery also commonly use installation floaters. If your work involves moving high-value components to a job site and installing them, you likely need this protection; many contractors combine it with commercial general liability and equipment coverage to address both property and liability exposures. For contractor-focused guidance, see the Installation Floater / Builders Risk Insurance for Contractors.
What it typically covers
Coverage is designed to protect covered property against physical loss or damage during transit, storage, and installation. Common coverages include:
- Loss or damage in transit (truck, rail, or ship)
- Theft, vandalism, or collapse at the job site
- Damage during off-loading or erection
- Testing and commissioning risks for installed equipment
Specialized floaters may be tailored for specific goods—such as audiovisual systems—so installers of sound and video equipment often combine installation floaters with AV/Equipment Floaters Insurance to ensure full protection for both transport and operation.
Common exclusions or limitations
Exclusions can vary, but frequent limitations include:
- Wear and tear, gradual deterioration, or faulty workmanship
- Delay, loss of use, or consequential economic losses
- Damage from improper maintenance after installation
- War, nuclear events, and certain environmental perils unless specifically added
Policies may also restrict coverage for items left unattended for extended periods or for property not listed on the policy schedule.
Factors that influence cost
Underwriting factors that affect premium include the value and type of goods, transit distance and mode, on-site security, installation complexity, and claims history. Projects that involve international shipping or specialized heavy-lift equipment may attract higher rates; if your work crosses borders, consider policies tailored for overseas exposure such as International Equipment Floaters Insurance. Risk management measures—secure storage, GPS tracking, and vetted transportation providers—can reduce premiums.
Proof of insurance & compliance
Contractors and installers are often required to provide certificates of insurance and additional insured status to satisfy owner or general contractor contracts. Certificates typically list policy limits, effective dates, and any endorsements. Make sure your floater policy aligns with contract terms for project-specific requirements and hold-harmless agreements.
How to get a quote
To compare options, gather a list of items to be covered, values, shipment methods, and expected installation timelines. Discuss project specifics, including on-site security and heavy-lift requirements, when you request pricing. If you prefer to consult with a broker, you can also talk to your agent for personalized advice and a tailored quote.
Risk scenario example: a delicate AV rack damaged during crane placement could be covered if the floater lists the equipment and the loss falls within the policy’s insured perils.
Frequently Asked Questions
Do installation floaters cover theft during transit?
Yes—most installation floaters cover theft in transit and on-site theft if the loss falls under the policy’s listed perils, though limits and conditions may apply.
Can I add coverage for testing and commissioning?
Testing and commissioning can often be included or endorsed onto a floater policy; confirm limits and any required safety procedures with your insurer.
Is an installation floater the same as builders risk?
No. Builders risk generally covers the structure under construction, while installation floaters focus on movable equipment and materials in transit, storage, or awaiting installation.
Still have questions? Talk to a local insurance expert.