Installation Floater

Overview

An installation floater is a specialized inland marine insurance policy designed to cover property — materials, equipment, and fixtures — from the moment it leaves the vendor's premises through transit, storage, installation, and testing, until the work is completed and accepted by the project owner. It fills a coverage gap that exists between the vendor's standard property policy (which typically covers items at the vendor's location) and the project's builders risk policy (which may not cover vendor-owned property).

How It Works

An installation floater provides continuous coverage across three phases:

1. Transit: While materials and equipment are being transported to the job site
2. Storage: While items are stored at the job site or a staging area awaiting installation
3. Installation: While the items are being installed, connected, and tested

Coverage typically ends when the installation is complete and accepted by the owner, or when the property becomes part of the building and is covered under the owner's permanent property policy or the project's builders risk policy.

Installation floaters are commonly used by:

• HVAC contractors installing heating and cooling systems
• Elevator companies installing elevator equipment
• Technology vendors installing security systems, AV equipment, or network infrastructure
• Glass and glazing contractors transporting and installing large glass panels
• Equipment suppliers delivering and installing specialized machinery

The policy is usually written on a project-specific basis with limits reflecting the total value of materials and equipment being installed. Coverage is typically "all-risk" with standard exclusions for defective workmanship, wear and tear, and mechanical breakdown.

Compliance Relevance

Installation floaters matter in COI compliance when vendors are bringing high-value materials or equipment to a project:

• Gap prevention: Without an installation floater, there may be no coverage for vendor-owned property between the vendor's premises and the point of acceptance by the owner
• Builders risk coordination: Compliance teams should verify how the installation floater interacts with the project's builders risk policy to avoid both gaps and overlaps
• Limit adequacy: The floater limit should match or exceed the total installed value of the vendor's materials and equipment
• Certificate evidence: Installation floaters are typically shown on an ACORD 28 or referenced in the Description of Operations on an ACORD 25

Requiring an installation floater from vendors who supply and install expensive equipment protects the project from disputes over who bears the loss if materials are damaged before acceptance.