Installation Floater Insurance: Protect Your Business

For contractors, electricians, plumbers, and other tradespeople, the equipment and materials you install are critical to your projects—but they’re vulnerable during transit and installation. Installation floater insurance protects these assets from theft, damage, or loss, ensuring your business stays on track. At THAgency, we’ve been safeguarding U.S. businesses since 1995, partnering with nearly 100 carriers to deliver tailored insurance solutions. In this guide, we’ll explore what installation floater insurance covers, why it’s essential, and how to choose the right policy. What’s your top priority when insuring your installation projects—cost, coverage, or reliability? Let us know, and we’ll customize a plan for you!

What Is Installation Floater Insurance?

Installation floater insurance, a type of inland marine insurance, covers materials, equipment, and machinery during transit, storage, and installation until they become a permanent part of a structure. Unlike standard property insurance, it protects assets at job sites or in transit, making it ideal for contractors and tradespeople.

Example: An HVAC unit worth $15,000 damaged during delivery or a stack of drywall stolen from a job site would be covered, minimizing financial loss.

Why Installation Floater Insurance Matters

Installation projects expose materials to risks like theft, vandalism, accidents, or weather damage. Without coverage, replacing these items can delay projects and strain budgets. This insurance ensures:

• Financial Protection: Covers repair or replacement costs, reducing out-of-pocket expenses.

• Project Continuity: Enables quick recovery to keep projects on schedule.

• Compliance: Meets client or regulatory requirements for insured materials.

State-Specific Note: In California, contractors may need installation floater insurance to comply with project contracts. THAgency ensures your policy meets local standards.

What Does Installation Floater Insurance Cover?

This insurance protects against:

• Theft: Covers materials or equipment stolen from job sites or vehicles (e.g., copper wiring taken from a construction site).

• Accidental Damage: Pays for repairs or replacements due to accidents during installation (e.g., a dropped plumbing fixture).

• Weather Damage: Covers losses from storms, floods, or wind affecting stored or installed materials.

• Transit Damage: Protects equipment damaged during transport to job sites.

Coverage Scope:

• Materials: Drywall, wiring, fixtures, or HVAC units before permanent installation.

• Equipment: Tools or machinery used during installation (e.g., cranes, welders).

• Temporary Storage: Items stored at job sites or warehouses before installation.

Example: A plumber’s $5,000 piping system damaged by a storm at a job site is covered, ensuring project continuity.

Key Features of Installation Floater Insurance

• Comprehensive Coverage: Protects against theft, vandalism, fire, and accidents during transit and installation.

• Flexible Policies: Tailors coverage to specific projects, ongoing operations, or high-value items.

• Inland Marine Component: Covers materials and equipment in transit or at temporary locations, unlike standard property policies.

• Customizable Limits: Matches coverage to the value of your materials and equipment.

Factors Affecting Installation Floater Insurance Costs

• Material Value: Higher-value items (e.g., $50,000 HVAC system) increase premiums.

• Project Duration: Longer projects raise premiums due to extended risk exposure.

• Material Type: Fragile or theft-prone materials (e.g., copper) cost more to insure.

• Job Site Location: High-crime or weather-prone areas (e.g., coastal California) may increase rates.

• Claims History: Frequent claims can lead to higher premiums.

Typical Cost: $500-$3,000 annually for small to medium contractors, with THAgency securing competitive rates.

Exclusions and Limitations

Common exclusions include:

• Wear and Tear: Normal deterioration or maintenance issues aren’t covered.

• Faulty Workmanship: Damage from improper installation is excluded.

• Voluntary Parting: Losses from fraud or giving up possession aren’t covered.

• War/Nuclear Risks: Damage from war or nuclear events is excluded.

How to Choose the Right Installation Floater Insurance

1. Assess Project Risks: Identify risks like theft, weather, or transit accidents based on your trade and job sites.

2. Inventory Materials: List all equipment and materials, noting their value and installation timeline.

3. Check Policy Limits: Ensure coverage matches the total value of your assets (e.g., $100,000 for a large project).

4. Review Exclusions: Understand what’s not covered to avoid surprises during claims.

5. Compare Quotes: Work with THAgency to evaluate policies from nearly 100 carriers for the best coverage and price.

Example: An electrician installing $20,000 in wiring for a commercial project might choose a policy with transit and theft coverage to protect materials on-site and en route.

FAQs About Installation Floater Insurance

• What’s the difference between installation floater and property insurance? Installation floater covers materials and equipment in transit or during installation, while property insurance covers fixed assets at your business location.

• How much coverage do I need? Match coverage to the value of your materials and equipment, considering replacement costs. THAgency can assess your needs.

• Can I cover multiple projects? Yes, policies can cover single projects or ongoing operations, tailored to your business.

• Does it cover subcontractor materials? Yes, if specified in the policy. Confirm with THAgency to include subcontractor assets.

Why Choose THAgency for Installation Floater Insurance?

Since 1995, THAgency has protected U.S. contractors and tradespeople with customized insurance solutions. Our partnerships with nearly 100 carriers ensure competitive rates and comprehensive coverage for your installation projects. Whether you’re a plumber, electrician, or general contractor, we’ll find the right policy. What’s your biggest concern—project delays or material costs? Reply, and we’ll tailor a solution for you.

Get a Free Quote with THAgency

Don’t let material losses derail your projects. With THAgency’s expertise and access to nearly 100 carriers, we’ll find the best installation floater insurance for your needs. Contact us today for a free, no-obligation quote.