When it comes to construction projects, there is no doubt that the installation of the materials is a vital part of the process. As such, it is important for contractors to understand the importance of having an installation floater in place.

By the end of this article, contractors will have a better understanding of installation floaters and how they can help protect their business and their clients.

What are Installation Floaters, and Why Do You Need One?

Installation floaters are specialized insurance policies that protect contractors and their clients from the costs of replacing or repairing materials that are damaged during installation. These policies are typically purchased by contractors as a way to cover any unexpected costs that may arise during the installation process. They are designed to cover the cost of replacing or repairing any materials that are damaged due to a variety of causes, including accidents, natural disasters, or other incidents.

Installation floaters are a great way for contractors to ensure that their clients are protected from the costs of unexpected repair or replacement costs. Additionally, installation floaters provide contractors with peace of mind knowing that their clients are financially protected should any unexpected costs arise.

Do You Need Installation Floaters If You Have a Builder’s Risk Policy?

Yes, even if you have a builder’s risk policy, you may still need an installation floater to fully protect your business and your clients. A builder’s risk policy typically covers the structure of the project, but it does not provide protection for the materials that are being installed. An installation floater, on the other hand, provides coverage for the materials that are being installed, including any damage that occurs during the installation process.

This type of policy will also cover any additional costs associated with the installation, such as labor and transportation costs. It is important for contractors to understand their specific needs and determine if an installation floater is necessary for their project.

The Claims Process for Installation Floaters

When a claim is made against an installation floater, the contractor is responsible for submitting the necessary documentation to receive compensation. This documentation should include a description of the damage, a description of the repair or replacement costs, and proof of the installation date.

Once the claim is submitted, the insurance provider will investigate the claim and make a decision on whether or not to provide coverage. If coverage is provided, the contractor will receive the money to cover the cost of the repairs or replacements. If coverage is not provided, the contractor must cover the cost of the repairs or replacements.

Things to Consider When Getting an Installation Floater

1. Types of Floaters

There are two main types of installation floaters: general and specific. A general floater covers the installation of all materials, while a specific floater covers only the installation of a certain type of material. 

2. Coverage

Depending on the type of floater, coverage can include protection for the contractor’s materials, labor, and equipment. Additionally, a floater may also provide coverage for third-party property damage and legal liability. 

3. Limits

It is important to understand the limits of coverage provided by the floater and ensure that the limits are sufficient to cover the cost of the installation.

4. Cost

The cost of an installation floater will vary depending on the type of floater and the limits of coverage chosen. It is important to shop around and compare prices to ensure that the floater is a good value for the money. 

5. Claims

It is important to understand the claims process and what is needed to make a successful claim. Additionally, contractors should ensure that the policy includes a satisfactory claims process.

By understanding the importance of an installation floater and the different types of floaters available, contractors can make sure that they have the right coverage in place to protect their business and their clients. With the right policy in place, contractors can be confident that their projects will be completed without any unexpected surprises.


It is important for contractors to be aware of the potential need for an installation floater when working on a construction project. This type of insurance can help protect against any damages that may occur during the installation process, and can provide peace of mind in knowing that the project is covered in case of any unforeseen accidents or problems. While not every project will require this type of insurance, it is always best to be prepared and to have a plan in place in case it is needed.

Pascal Burke Insurance Brokerage Inc. are specialists in an array of policies that cover not only general cases but also specialty contractors. Workplace injuries happen more frequently than you would think. You won’t have to worry about breaking the bank with our great rates! If you want to get business insurance for excavation contractors, we’ve got you covered! For a hassle-free transaction about your insurance policy, you can go to our website pbibins.com, or call us at (877) 893 7629.