Table of Contents
Protecting Contractors: The Benefits of an Installation Floater
Many contractors, whether they specialize in general contracting, electrical work, carpentry, or other trades, might not realize gaps in their insurance coverage for materials and equipment used in installation projects. These gaps can expose them to significant financial risks if issues arise. Installation Floater Coverage benefits contractors by addressing these vulnerabilities and protecting tools, machinery, and materials throughout the installation process. This insurance shields contractors from unexpected losses or damage before the project’s completion, offering a crucial safety net and peace of mind.
The Importance of an Installation Floater in Bridging Coverage Gaps
An Installation Floater is a specialized insurance policy that fills critical gaps often left by standard insurance. Unlike general coverage, which may not cover all aspects of a project, an Installation Floater provides essential protection for property throughout its journey—from the moment it leaves the insured’s premises until it is fully installed at the intended site.
This coverage is particularly valuable for contractors and businesses involved in installation projects. It covers property, including materials, equipment, and tools, while located at temporary sites, in transit, and during installation. If any damage or loss occurs at these stages, the Installation Floater provides the necessary financial protection.
Example Scenario: How an Installation Floater Mitigates Financial Risk
A window installer working on custom home finishes picking up windows and doors for installation. While transporting them to the job site, they hit a pothole, damaging some of the windows. Typically, the contractor would face the financial burden of replacing these costly windows, which would reduce their profits. However, with an Installation Floater on their policy, the contractor gets coverage for the loss and avoids the financial strain of the damaged windows.
Action Steps
When reviewing their operations, contractors should discuss the necessity of an adequate Installation Floater with their Broker to safeguard against potential losses. Installation Floater Coverage benefits those seeking comprehensive, worry-free protection, a bundled insurance solution like Unica’s Contractors Connection™ offers the perfect blend of coverage tailored to meet the unique needs of Canadian contractors.
Stay informed and make sure your coverage is up to date! For regular updates on essential coverage and industry insights, follow us on LinkedIn!
