When you hire someone to install your products, you need to protect yourself against potential legal problems. A contractor installation floater insurance policy provides coverage for any damages caused by an installer.
Protecting Your Business From Liability.
If you own a construction company, you probably understand how difficult it is to find qualified employees who are willing to work for low wages. That’s why you should consider hiring contractors with a contractor installation floater insurance plan. These policies provide protection for your business against claims made by third parties injured during the installation process.
Ensuring That Employees Are Protected.
In addition to protecting your business from liability, a contractor installation floater policy also provides coverage for your workers. This means that if one of your employees is injured during the installation process, he or she will receive compensation for medical bills and lost income.
Making Sure That Subcontractors Are Protected.
If you own a construction company, you should make sure that your subcontractors are protected by having them carry worker’s compensation insurance. Worker’s comp covers medical expenses and lost wages for any injuries suffered at work. It also helps protect your business from lawsuits filed against you by injured workers.
Providing Additional Insurance Protection.
In addition to worker’s comp coverage, you should consider purchasing additional insurance protection for your contractors. This includes property damage coverage, general liability insurance, and commercial auto insurance. Property damage coverage will cover damages caused by your employees or subcontractors. General liability insurance will help protect you from claims made by third parties who were harmed by your employees or subcontractor. Commercial auto insurance will provide coverage for vehicles used by your employees or subcontracts.
Avoiding Potential Problems.
If you do not have these policies in place, you run the risk of being held liable for any injuries or damages that occur during the installation process. It is also possible that your workers’ compensation carrier will deny payment for medical treatment related to the injury.
In simple words, installation floater insurance is there to protect materials and other commercial property or inventory while they are in transit, being installed, or being stored at a temporary location.
Looking at installation floater in detail, it is to protect movable property such as building materials or completed cabinets for a kitchen, while it is either being installed, built on-site, or being transported to or from the site. It usually extends to the time until the work is completed, and approved by the client.
While buying the installation floater insurance, you have to be careful what you want to protect. In case it is portable machinery or tools of the trade, you will have to buy equipment floater insurance, a type of inland marine insurance coverage.
Who is an installation floater policy for?
Installation floater policies are mostly purchased by contractors to keep the mass amounts of materials and products safe while in transit and while being stored on-site before installation. It can be anything, from finished cabinets to be installed in a house to material for HVAC in a multistory building.
For example, an electrician might buy the installation floater insurance to protect himself financially from theft of copper wire at his job site.
Minus the deductible, the contractor would also be protected against vandalism, fire, and mishandling of the materials.
Installation floater vs builders’ risk
Also known as construction insurance, the builder’s risk insurance protects contractors, subcontractors, and construction companies from losses incurred at a construction site. It’s more of a property insurance policy bought before the building materials arrive and kept in place until the property is sold or handed over to a client.
Builder’s risk insurance is not only more expensive but also more comprehensive in terms of what it protects as compared to the installation floater insurance policy. However, a contractor may need a separate installation floater policy to cover items excluded from a builder’s risk policy, like HVAC or electrical systems to protect their company completely.
The builder’s risk insurance would cover the overall project, while installation floater insurance covers building materials and equipment used on site for installation.
Larger contractors or construction companies usually buy the builder’s risk policy while they are overseeing a construction site and may or may not buy the installation floater as per need. Smaller contractors who are responsible for certain jobs on the construction site might only buy an installation floater to cover the material they are responsible for.
In case a building is damaged by a storm or fire, the builder’s risk policy would cover it. If the drywall, electric, and plumbing materials, etc were damaged by a fire or storm, before or during installation, the financial loss would be covered by an installation floater.
Exclusions from an installation floater insurance policy.
Usually, installation floater insurance covers building materials while they are under a contractor’s control, before or during installation. This includes transportation of materials to the site as well. Fire, theft, and accidental damage are included.
Excluded scenarios include;
- More extreme events such as earthquakes, floods, or employee theft
- Air and sea transportation
- Materials and equipment that do not become a part of the project such as tools or machinery
- Table saws, power drills, toolboxes, etc
- Work vehicles
- Temporary structures such as fencing, scaffolding, or retaining walls
- Buildings and structures that are not a part of the construction job
- Landscaping items such as plants, etc