Alright, real talk—if you install stuff for a living, whether it’s HVAC units, security systems, cabinets, or even solar panels, you’ve probably had that heart-stopping moment when you realize: “Man…what if something happens to this gear before it’s officially handed off to the client?” That’s where Installation Floater Insurance comes in like a clutch teammate.
It might sound like some boring insurance jargon (I get it), but this little gem could save your bacon if your materials, equipment, or in-progress work takes a hit while you’re mid-project. Think of it like a security blanket for everything you’re installing, transporting, or temporarily storing before the job wraps up.
Let’s unpack what this actually covers, how it works, real-world examples, and whether you really need it. Spoiler: you probably do.
So, What Is Installation Floater Insurance?
An Installation Floater is a type of inland marine insurance. (Yeah, weird name—I’m not talking about boats.) Inland marine insurance just means it covers stuff in transit, being installed, or in temporary storage.
The “floater” part? That just means the coverage follows the goods wherever they go. It’s tailor-made for contractors and subs who handle expensive materials or equipment before they’re officially part of a completed project.
Here’s what it typically covers:
- Materials, supplies, and equipment being installed
- Stuff in transit to the job site
- Stuff stored temporarily at a site or nearby location
- Damage from theft, fire, vandalism, windstorms, and more
It fills the gap between when the supplier drops off the goods and when the final client takes over and the property insurance kicks in.
A Quick Story: Meet Dave the HVAC Pro
Dave runs a small HVAC business out in Arizona. He’s installing a $25,000 rooftop unit at a new commercial build. He stores the unit at the site a few days before installation. Guess what? Thieves hit the job site that weekend.
Without installation floater insurance? Dave eats that $25k loss.
With installation floater insurance? He files a claim and gets reimbursed, minus the deductible.
Big difference.
Who Needs This Type of Insurance?
If your biz installs stuff that doesn’t belong to you yet—meaning, it’s still in your custody or control—you probably need this.
Here are some trades that should seriously consider it:
- HVAC contractors
- Electricians
- Plumbers
- Roofers
- Window and door installers
- Solar panel contractors
- Landscapers doing big installs (ponds, pergolas, irrigation systems)
- General contractors and subs
Even furniture installers or tech specialists setting up massive server rooms could benefit.
What It Doesn’t Cover (Important!)
Every policy has limits. Installation floater insurance usually doesn’t cover:
- Your tools (you’ll need tools and equipment insurance for that)
- Employee injuries (that’s workers’ comp territory)
- Faulty workmanship or defective products
- Wear and tear
- Losses after the project is completed and accepted by the client
And don’t assume your general liability covers installation risks—it usually doesn’t.
Let’s Talk Numbers: What’s the Damage?
Good news? Installation floater insurance is pretty affordable—especially compared to a five-figure material loss.
On average, policies cost:
- $300 to $1,000 annually for small contractors
- Larger jobs or higher-value installs may cost more
The cost depends on:
- Project value
- Material types
- Job site location
- Past claims history
- Duration of the project
For example, if you’re doing a $50,000 install over 3 months, you might pay around $500-$750 for a policy covering just that job.
You can also get it as a standalone policy per project or add it to a larger inland marine policy if you’ve got multiple jobs running.
Real-World Stats: The Risk is Real
Let’s get nerdy for a sec. According to the National Equipment Register (NER) and National Insurance Crime Bureau (NICB):
- Construction site theft costs U.S. businesses over $1 billion annually
- Less than 25% of stolen construction materials and equipment is ever recovered
- The average claim for installation losses hovers around $6,000 to $12,000
That’s no joke. And if you think your general liability policy has your back—think again. Most GL policies don’t cover materials before completion.
What Should You Look for in a Policy?
Here’s what smart business owners check when shopping for installation floater insurance:
- Coverage Limits – Match the value of your materials and labor. Don’t skimp.
- Deductibles – Lower deductibles mean higher premiums but quicker recovery from smaller losses.
- Per Project vs. Blanket Coverage – If you juggle multiple installs, blanket policies can be more cost-effective.
- Named Perils vs. All Risk – “All risk” policies usually offer better protection, unless they list too many exclusions.
- Transit and Storage Coverage – Especially important if you haul or store stuff regularly.
And don’t forget to ask if installation delay coverage is available—it can cover lost income if delays mess up your schedule.
Installation Floater vs. Builder’s Risk Insurance
Ah, the classic confusion. Here’s the difference:
- Builder’s Risk Insurance: Covers the entire project—structure, materials, etc.—usually held by the property owner or GC.
- Installation Floater: Covers just the materials or equipment you’re installing, and only until the job’s done.
If you’re a subcontractor, don’t rely on the GC’s builder’s risk. You might not be named on it, and that’s risky business.
Here’s the Bottom Line
If you install stuff for a living, you need to protect it. From the moment you take delivery, while it’s in your truck, sitting at the job site, and even mid-install—stuff can go wrong. A bad storm, a thief, a clumsy forklift operator—you name it.
Installation floater insurance is your backup plan. It keeps you from eating thousands in losses, saves your cash flow, and helps you sleep better at night.
Honestly? It’s one of those policies most folks only realize they needed after a loss. Don’t be that guy.
Protect Your Projects with USA Business Insurance
Alright, if you’ve made it this far—you’re probably either curious or seriously considering this coverage. Either way, you’re in the right place.
USA Business Insurance specializes in small business coverage tailored to tradespeople, contractors, and the folks who get their hands dirty building, fixing, or installing America’s future.
We don’t do cookie-cutter policies. We talk to you, understand your jobs, and make sure you’re covered right.
Don’t wait till you’re replacing stolen copper piping or a wind-damaged solar array on your own dime. Let’s get you covered.
👉 Call us now or visit BusinessInsuranceUSA.com and click “Get a Quote.” We’ll walk you through it, no pressure.
