Which Is Better: Builders’ Risk or Installation Floater Insurance?


Construction can be a risky business. Bad weather, faulty materials or equipment failure can cause damage to your projects and equipment. If something goes wrong during a project, will your business have enough insurance coverage to replace or repair the damage?

What Is Builder’s Risk Insurance?

Builders risk insurance protects the property of your client while you are working on the property. A builders risk for contractors policy can reimburse you if damage happens due to:

  • fire
  • hail
  • lightning
  • theft
  • vandalism
  • aircraft crash
  • explosion
  • other natural disasters like hurricanes

This insurance can prevent delays in your projects from harmful hazards during the construction process.

What Is Installation Floater Insurance?

Installation floater insurance, a type of inland marine insurance, is like builders risk insurance in that it can provide coverage for your company while on another property. However, it specifically protects your own property, equipment and tools that you might use on location at a project or while your property is in transit.

You may not know what kind of insurance you need when starting a new project. Depending on your projects, you may need one type of coverage more than another. However, you should consider both types of policies so you do not have any coverage gaps on your projects.