Contractors Equipment Floater Insurance

Things to Look For When Shopping For a Contractors Equipment Floater Insurance

contractors equipment floater

A contractor’s equipment floater is often included as a sublimit in a builders risk policy. In some cases, reasonable floater rates will eliminate the need for a separate floater for the contractor’s tools and equipment. Most floaters also include coverage for property of others in the insured’s care. Some only cover such property if the insured is legally liable for the damage. Choosing the right floater for your business depends on the type of coverage you need and the costs.


If you run a construction company, you probably already have some type of insurance coverage for your business’ equipment. However, if you rent equipment to complete projects, you should consider investing in a floater policy to protect your investment. Rental equipment can be susceptible to damage, which could end up costing thousands of dollars. Not only would this cost you time and money, but it could also damage your reputation. The best way to minimize the impact of any equipment damage is to get a proper insurance policy for it.

When purchasing an equipment floater policy for your company, it is important to understand the deductibles and coverage limits. The base rate for contractors equipment floater insurance varies from policy to policy, and it must be based on the total value of the equipment. Some companies have exclusions for specific types of equipment. These exclusions include mechanical breakdown, wear and tear, improper loading, and use. The policy may also limit the amount of damage a specific piece of equipment can cause to a property, but these are often small.


Many floaters exclude certain types of property from their coverage. Airborne and waterborne property are commonly excluded, so contractors who operate cranes or use watercraft must review their terms carefully before purchasing a policy. Landscaping is also commonly excluded. If your business does any landscaping, be sure to check your policy for exclusions on this type of property, as well. Here are some things to look for when shopping for a contractors equipment floater:

A Contractor’s Equipment Floater Policy covers a variety of exposures, including theft and damage. Often, this type of insurance also covers the tools and machinery that are used on a job site, although they can be in the process of being installed. Exclusions include damage caused by vandalism and theft, and they vary by policy. If your business is constantly transporting equipment between jobs, it is best to choose a floater that provides a broad range of coverage for the items that you use.


One option for contractors is to purchase an equipment floater. This type of insurance protects portable tools and machinery that are set up on a job site before the project begins. It can also cover tools and equipment used during the testing and installation process. Often, this insurance coverage extends to equipment that is rented or leased from other parties. Contractors should purchase an equipment floater if the amount of equipment is less than $1000.

Professional contractors invest a lot of money in their tools and machinery, and this equipment can add up quickly. If an employee accidentally destroys a tool, they can cost a small fortune. Although commercial property insurance will protect your equipment while it is in your shop, it will not protect your equipment when it is transported from one site to another. Luckily, there’s an insurance option called contractors equipment floater that covers all of these expenses.

Visit Us Now Also