An installation floater is an inland marine insurance policy that covers materials, equipment, and supplies from the moment they leave the supplier's warehouse until they are permanently installed at the job site and accepted by the owner. It fills the gap that standard builders risk and property policies leave open during transit and on-site staging.
Who this is for: Mechanical, electrical, plumbing, HVAC, fire-suppression, and specialty trade contractors who supply and install equipment or systems — and whose materials are at risk before final acceptance.
TL;DR / Key Takeaways
- Installation floaters cover property in transit, in storage, and during the installation process — not just while it sits on a job site.
- Coverage typically ends at the earliest of: final acceptance by the owner, policy expiration, or a specified completion date.
- They are written on an open-perils basis (subject to named exclusions), often on a replacement-cost valuation.
- Limits are set per project or as a blanket limit across multiple ongoing jobs; deductibles typically run $500–$2,500.
- Installation floaters do not replace general liability, workers' compensation, or completed-operations coverage — all four are usually required together.
What Does an Installation Floater Cover?
An installation floater is an inland marine form — a class of commercial property insurance designed for property that moves. The policy attaches to specific property rather than to a fixed location, which is precisely why it works for trade contractors.
Covered Property (Typical)
| Property Type | Example |
|---|---|
| Materials in transit to job site | Copper pipe on a delivery truck |
| Materials stored off-site (e.g., supplier's yard) | Pre-fabricated HVAC units awaiting delivery |
| Materials stored on job site before installation | Electrical panels staged in a trailer |
| Property being installed | Fire-suppression pipe being hung |
| Contractor's temporary structures | Scaffolding, forms, falsework used in the project |
Covered Causes of Loss (Open-Perils, Subject to Exclusions)
Most installation floaters are written open-perils, meaning all physical loss or damage is covered unless specifically excluded. Common exclusions include:
- Mechanical or electrical breakdown of the item being installed
- Defective workmanship, design, or materials (faulty work itself is not covered — the downstream damage from faulty work may be, depending on the form)
- Normal wear and tear, corrosion, rust
- Flood and earthquake (may be added by endorsement)
- War, terrorism (sometimes endorsable)
- Mysterious disappearance (some forms exclude this; theft generally is covered)
Installation Floater vs. Builders Risk: Key Differences
Contractors often ask whether a project's builders risk policy — typically purchased by the general contractor or owner — covers their materials. The answer is: sometimes, but not always, and usually not during transit.
| Feature | Installation Floater | Builders Risk |
|---|---|---|
| Who buys it | Trade contractor | GC, owner, or developer |
| Property covered | Contractor's materials & equipment | The entire structure under construction |
| Transit coverage | Yes | No (stops at site boundary) |
| Off-site storage | Yes (subject to limit) | Rarely; usually requires endorsement |
| Coverage trigger | When property leaves supplier | Usually at site commencement |
| Coverage end | Owner acceptance | Certificate of occupancy / project completion |
| Typical valuation | Replacement cost | Replacement cost |
| Policy structure | Per project or blanket | Per project |
Bottom line: Even when you are named as an additional insured on a builders risk policy, that policy does not follow your materials from the warehouse to the site. An installation floater does.
How Much Does an Installation Floater Cost?
Premium is driven by three factors: the value of the property being installed, the trade's loss history, and the coverage structure (per-project vs. blanket).
Indicative Premium Ranges by Trade
| Trade | Typical Project Value | Annual Premium Range |
|---|---|---|
| HVAC contractor | $150,000–$500,000 | $1,200–$4,500 |
| Electrical contractor | $100,000–$750,000 | $900–$6,000 |
| Plumbing/mechanical | $200,000–$1,000,000 | $1,800–$8,000 |
| Fire suppression (sprinkler) | $250,000–$2,000,000 | $2,500–$15,000 |
| Low-voltage / AV systems | $75,000–$400,000 | $700–$3,500 |
Ranges are illustrative only. Actual premium depends on carrier underwriting, loss history, deductible selection, and specific project characteristics.
Key Rating Variables
- Limit of insurance: Set at or above the maximum value of materials you could have at risk at any one time across all open projects.
- Deductible: Higher deductibles ($2,500+) meaningfully reduce premium; common choices are $500, $1,000, $2,500.
- Transit sub-limit: Some forms cap transit losses at a percentage (e.g., 25%) of the blanket limit.
- Off-site storage sub-limit: Often capped separately — confirm this matches your actual exposure.
How to Get an Installation Floater: 5 Steps
- Inventory your in-progress projects. List each project, the value of your materials on hand or in transit, and the expected completion date. This determines the minimum limit you need.
- Choose per-project or blanket coverage. A blanket form (single limit covering all projects simultaneously) is simpler to manage for contractors running multiple jobs; a per-project form works when you have one or two large contracts.
- Confirm what the GC's builders risk covers. Request a copy of the builders risk declarations and verify whether your materials, transit, and off-site storage are included. Fill the gap with your floater.
- Submit an application. You will need: three to five years of loss runs, a list of current and upcoming projects with contract values, and your general contractor license number.
- Bind and issue certificates. Many contracts require you to provide a certificate of insurance evidencing the installation floater before work begins. Your broker should be able to issue same-day or next-business-day.
Real-World Example: HVAC Contractor, Commercial Office Renovation
Scenario (illustrative — not a guarantee of coverage or outcome):
Cascade Mechanical is a 12-person HVAC subcontractor based in Denver, Colorado, working on a $1.2 million tenant-improvement project for a Class-A office building. Their scope includes $380,000 in rooftop units, ductwork, and controls.
- Risk: The rooftop units ($220,000 replacement cost) are stored in a rented yard 3 miles from the job site for six weeks while the roof deck is completed. The GC's builders risk policy excludes off-site storage.
- Without a floater: If fire or theft destroys the units in storage, Cascade bears the $220,000 loss.
- With a blanket installation floater ($500,000 limit, $1,000 deductible): Annual premium approximately $2,800. A fire in the storage yard destroys $180,000 in units. Cascade files a claim; the insurer pays $179,000 (loss minus deductible) and the project continues.
- Coverage ends: When the building owner signs the final punch list and formally accepts Cascade's work.
Frequently Asked Questions
Does an installation floater cover tools and equipment?
No. Tools and equipment owned or rented by the contractor are covered under a separate inland marine tools and equipment policy (sometimes called a contractors equipment floater). An installation floater covers only property that will be permanently incorporated into the project — not the tools used to install it.
What happens if the project runs over schedule?
Most policies are written with a completion date or a policy period. If the project extends beyond that date, the coverage may lapse. Notify your broker immediately when a project is delayed; an extension endorsement or renewal is usually straightforward, but you must ask before the expiration date, not after a loss.
Is an installation floater the same as inland marine insurance?
Installation floaters are a type of inland marine coverage — a broader commercial property class that also includes contractors equipment, motor truck cargo, and electronic data processing coverage. Not all inland marine policies are installation floaters.
Do I need an installation floater if I'm added as additional insured on the GC's builders risk?
Probably yes. Builders risk is a property policy that typically covers your materials only once they are at the project site — it does not extend property coverage to your materials in transit or off-site storage. Review the builders risk form carefully with a licensed broker before relying on it.
Will my commercial property policy cover materials stored at my shop?
Your commercial property policy covers property at the scheduled location (your shop or warehouse), but typically only up to a sub-limit for "property of others" or materials awaiting installation, and it will not follow those materials once they leave your premises. Confirm your property policy's coverage territory before relying on it for job-site or transit losses.
How is an installation floater different from a completed-operations claim?
An installation floater covers physical loss or damage to the property before it is accepted. Once the owner accepts the work, physical damage claims shift to the completed-operations portion of your commercial general liability (CGL) policy — which covers bodily injury and property damage caused by your completed work, not the work itself.
Can I get an installation floater for a single large project?
Yes. Carriers offer both single-project and annual blanket forms. For one-off projects — such as a contractor landing a large hospital job — a project-specific form with a defined start and end date is common. Blanket annual forms are more efficient for contractors running multiple projects throughout the year.
What limits should I carry?
Set your limit at the maximum replacement cost of materials and supplies you could have at risk at any single point in time, across all open projects simultaneously. Under-insuring exposes you to out-of-pocket losses; some forms also carry a coinsurance clause that can reduce claim payments if the limit is inadequate relative to the value at risk.
Why Morrow for Your Installation Floater
- Independent access to multiple markets. Morrow is an independent agency [Morrow to confirm: list of key inland marine carriers] — we shop your account across multiple carriers, including specialty inland marine markets, rather than being captive to one insurer's pricing or appetite.
- Trade-contractor expertise. We regularly place coverage for mechanical, electrical, plumbing, fire-suppression, and specialty trade contractors. We know the difference between a builders risk gap and a floater need, and we ask the right questions upfront.
- Fast certificate turnaround. Many general contractors require proof of an installation floater before you can mobilize. We issue certificates and evidence of coverage quickly — typically same or next business day — so a paperwork delay never costs you a job.
- Coordinated program review. We review your entire insurance program — general liability, workers comp, auto, inland marine — to find gaps and overlaps. An installation floater only works if the surrounding program is right too.
- Claims advocacy. If a loss occurs, we advocate on your behalf with the carrier — helping document the claim, tracking timelines, and pushing back when a denial is not warranted.
Get a Quote
Ready to protect your materials from the moment they leave the supplier?
Get an Installation Floater Quote → or call [Morrow to confirm: phone number].
Licensed in [Morrow to confirm: licensed states] | Appointed with multiple A-rated inland marine carriers | [Morrow to confirm: review count and platform, e.g., "4.9 stars on Google"]
Related Pages
- Commercial Insurance for Contractors — the parent pillar covering the full contractor insurance program
- Builders Risk Insurance — how the GC's project policy works and where it ends
- Contractors Equipment Insurance — floater for tools and heavy equipment
- Inland Marine Insurance — the broader coverage class that installation floaters fall under
- General Liability Insurance for Contractors — covering bodily injury and property damage during and after the project
Author: [Morrow to confirm: author name], Licensed P&C Insurance Broker | [credentials, e.g., CPCU, CIC] Published: June 2026 | Last updated: June 2026
Sources: - Insurance Services Office (ISO) — Inland Marine coverage forms and filing circulars - Insurance Information Institute (III) — "Inland Marine Insurance" - National Association of Insurance Commissioners (NAIC) — Annual statement line definitions for inland marine - International Risk Management Institute (IRMI) — Commercial Lines Manual, Installation Floater definitions - State insurance department regulations — [verify state-specific form requirements where applicable]