Most businesses have some form of physical location, regardless of what they do. However, the world is becoming more mobile. So how can businesses prepare when they (and their people) are on the move? Commercial property floater insurance was created to give business owners peace of mind regardless of where their equipment may need to travel. However, they may underestimate just how important it can be to a business. See just when it can be used, and how you may need more of it than you think. 

Common Scenarios

For many businesses, the concept of taking their equipment from place to place is not a foreign concept. Construction businesses need to move their equipment around to different sites in order to do their jobs. While their expensive equipment is on a site, it may be at risk for damage from a number of different threats. Vandals could break into the construction site, or a weather event could cause thousands of dollars of damage. For the expensive property that simply can't be moved (e.g., bulldozers, etc.), there needs to be some type of protection for the damage. That's where commercial property floater can be of help. You can read more about mobile-focused options at Commercial Property Floater Insurance for Mobile Business Property. Consider how equipment coverage, commercial auto exposure, or contractor-specific exposures change the risk profile on a job site.

There are certain businesses that don't even have a constant, physical location. A traveling show, circus, or carnival, for example, needs to take their property to the different towns they work in. Each place they visit has their own set of dangers that come with it. A small city in Kansas may be hit by a tornado during the summertime or a small town in California may have too many bored teenagers who want to cause a little trouble.

Whether it's a major act of God or a small act of vandalism, most property owners would prefer not to cover these costs on their own. Commercial property floater insurance can go a long way to getting the equipment either repaired or replaced without putting any extra stress on an owner.  Floater policies are commonly used alongside general commercial liability and equipment coverage to provide a more complete risk management approach for operators and event organizers.

 Additional Considerations

Plenty of businesses have employees that venture off-site to do their jobs. Salespeople take company cars, phones, or laptops to their clients in order to conduct transactions with their clients. Businesses need commercial property insurance of course, but that may only cover damage that's done on the actual company premises. An insurance company cannot account for what happens to equipment when it leaves an office. They can't be certain that it's being taken to an area that's safe. If a company takes a laptop to a high-crime area and it's stolen, they may not get much help from their normal insurance. You can compare broader equipment-focused options in our article Why Equipment Floaters Insurance is Non-Negotiable for Your Business.

Or if an employee takes a laptop home with them and their toddler spills milk all over it, they may not pay for the full cost of replacement. Instead, a floater may be able to take care of the expenses, so a company can get back to work. The floater covers the property regardless of where it goes, so a business can service more people without worrying about what will happen to their property.  A common risk scenario is a piece of rental equipment damaged during transport — that kind of transportation risk is exactly what floaters help address.

Even if a company has commercial property floater insurance, they may not have enough. There are general rules and restrictions when it comes to how equipment is meant to be handled, where it should go, etc. If you're concerned about just how much would be covered should something happen to your equipment, you may want to review your current policy and talk to your insurer about underwriting factors, exclusions, and liability exposures. Companies tend to amass a lot of property as they remain in business, and they may fail to update their insurance company about all of the new additions. For more on standard site-based coverage, see Commercial Property Insurance and how it differs from floaters.

When questions come up about scope or limits, don't hesitate to talk to your agent to confirm coverage limits, any special handling or storage requirements, and whether you need broader protection for inventory in transit. Typical buyers of floaters include contractors, retailers, manufacturers, and event organizers who need protection for mobile assets.

Frequently Asked Questions

What types of property can a commercial property floater cover?

Floaters commonly cover mobile equipment, tools, electronics, trade show displays, and other business personal property that moves between locations. Specific covered items depend on the policy declarations.

How is a floater different from standard commercial property insurance?

Standard commercial property insurance generally applies to items on the insured premises. A floater extends coverage to property while it is away from the premises — during transport, at job sites, or at temporary locations.

Are there common exclusions I should watch for?

Yes. Exclusions may include wear and tear, gradual deterioration, employee dishonesty, and certain types of high-risk locations or uses. Underwriting factors and policy terms determine exact exclusions.

Still have questions? Talk to a local insurance expert.