An equipment floater policy provides insurance coverage for business property that moves between locations. This type of policy is particularly useful for businesses that frequently transport tools, machinery, and equipment. It ensures that portable items, as well as larger, more complex equipment stored on job sites or offsite, are protected. By offering tailored coverage for unique and high-value business assets, equipment floaters deliver a comprehensive solution for businesses operating in dynamic environments.
What Does Equipment Floater Insurance Mean?
Equipment floater insurance protects equipment against common risks associated with jobsites, such as fire, water damage, theft, vandalism, and natural disasters. Unlike standard property insurance, which often limits coverage to a specific location, an equipment floater covers tools and machinery wherever they are—on a jobsite, in transit, or at a temporary storage location. This flexibility makes it an indispensable asset for businesses that rely on the mobility of their tools and equipment.
Who Needs Equipment Floater Insurance?
Specialty contractors in the construction industry often have business property that requires protection as it moves from one jobsite to another. Equipment floater insurance is especially relevant for contractors who rely on high-value tools and machinery.
Some contractors who may benefit from this coverage include:
- Excavators
- Masons
- Carpenters
- Plumbers
- Electricians
- Painters
- Landscapers
- Roofers
- Concrete contractors
- Flooring installers
This list highlights the diverse range of professionals who rely on equipment floater insurance to safeguard their livelihood.
What Does Equipment Floater Insurance Cover?
An equipment floater policy typically covers a variety of tools and machinery used in construction and related industries. Examples of covered items include:
| Category | Example |
|---|---|
| Hand Tools | Hammers, Drills, and Saws |
| Larger Equipment | Scaffolding, Ladders, and Generators |
| Heavy Machinery | Excavators, Skid Steers, and Forklifts |
These items, vital to completing daily operations, are protected whether they’re in use, stored, or being transported to a new location.
What Does Equipment Floater Insurance Not Cover?
While equipment floater insurance provides extensive coverage, it doesn’t cover all business assets. Items excluded from coverage include:
| Category | Example |
|---|---|
| Vehicles | Trucks, vans (require separate policies) |
| Building Materials | Plywood, decking, cabinetry |
| Installed Fixtures | Plumbing systems, HVAC units, siding |
Understanding these exclusions is essential to avoid unexpected gaps in coverage. Discussing specifics with your insurance provider will help ensure all your assets are appropriately protected.
How Do You Manage an Equipment Floater Policy?
Managing an equipment floater policy involves regular assessment and documentation of your business property. Keeping an updated inventory, complete with photographs and detailed descriptions, can streamline claims in the event of a loss. Additionally, reviewing and updating your policy as your business evolves ensures adequate coverage for new or retired equipment.
How Much Does an Equipment Floater Policy Cost?
The cost of an equipment floater policy varies depending on factors such as the value of your equipment, the nature of your work, and the risks associated with your operations. Typically, an additional premium is charged when adding this coverage to an existing policy or purchasing it separately. For precise pricing, it’s essential to consult with an insurance representative who can tailor the policy to meet your specific needs.
