Anyone who has worked more than one project in construction knows at least some of the risks that merit purchasing builders risk insurance. However, not everyone is as familiar with installation floater insurance, and many are uncertain whether they need both. Here is an explanation ofinstallation floater vs. builders risk.

Builders Risk

Builders risk is insurance for all the big and small mishaps that might cost you money on a specific project. It also protects subcontractors involved, as well as the manager and property owner. Most policies cover the following incidents:

  • Extreme weather
  • Fire
  • Faulty materials
  • Accidents

Installation Floater

The word floater refers to a type of insurance that covers personal property that is portable and not tied to a specific location. In the construction industry, installation floater insurance covers the cost of the materials you are installing. A single policy covers multiple projects, and benefits only the party that purchases it. It is a supplement to builders risk, rather than a replacement for it, and can even be used to pay the builders risk deductible.

An installation floater is a policy to consider in addition to builders risk. With the two in place, you can have peace of mind knowing that you are prepared, no matter what happens on the construction site.