Introduction: two complementary project insurance tools

Builder’s Risk and Installation Floater policies both protect property during construction—but they insure different subject matter and are triggered by different phases of work. Understanding where each applies, how Delay in Start-Up (DSU) and soft costs are handled, and what certificate wording counterparties expect will help owners, developers, and contractors avoid gaps, double insurance, and disputes.

Coverage scope and triggers

Builder’s Risk (Course of Construction)

Builder’s Risk insures the works at the project site during new builds, additions, and major renovations. It typically responds to physical loss or damage to the project caused by insured perils (e.g., fire, theft, certain weather events) from site mobilization through substantial completion. It is distinct from a completed building’s property policy. See Summit’s overview of what Builder’s Risk covers, who should buy it, and soft vs. hard costs. Learn more about Builder’s Risk.

Typical characteristics

Insured interest: the project as a whole (buildings/structures in the course of construction), including materials at the site and often while in temporary storage near the site.
Parties: commonly purchased by the owner or general contractor with other parties (e.g., subs, lenders) named as additional insureds or loss payees where required by contract.
Timeline: policy term matches the construction schedule; extensions are common if the project runs over.

Installation Floater

An Installation Floater insures materials, equipment, and fixtures that a contractor is responsible for installing, from the moment they leave the vendor, through transit and off‑site storage, until they are installed and accepted. It is often used for trade‑specific scopes (e.g., HVAC, millwork, glazing, process equipment) and for rolling, multi‑job work. See Summit’s contractors page for where Installation Floater fits within a contractor’s program. Contractors insurance (includes Installation Floater).

Typical characteristics

Insured interest: the contractor’s interest in scheduled items being installed (not the entire project).
Parties: purchased by the installing contractor; can name project owners/GCs as additional insureds or loss payees per contract.
Timeline: per‑job or blanket/annual coverage with a maximum value at any one job, including defined transit and storage limits.

DSU (Delay in Start‑Up) and soft costs

Soft costs (builder’s risk): expenses that arise because the project takes longer to complete after a covered physical loss—e.g., additional professional fees, permit costs, site security, and financing charges. Summit’s Builder’s Risk guide explains the distinction between soft and hard costs. See Summit’s Builder’s Risk guide.
DSU (builder’s risk): an optional time‑element extension that can indemnify for loss of anticipated income or continuing expenses due to a project opening late as a result of covered physical damage. DSU typically requires a defined indemnity period, a critical path schedule, and evidence that the delay stems from insured damage.
DSU and Installation Floater: DSU is generally arranged on the project’s Builder’s Risk policy. Installation Floaters focus on physical loss to installed items plus transit/storage—not project revenue delay. If delay protection is needed for an installation‑only scope, discuss alternatives such as soft‑cost extensions (where available) or aligning business interruption coverage on the owner’s completed‑property policy to the planned in‑service date. For broader time‑element protection, see Summit’s Business Interruption explainer.

Practical tips

Define the delay basis: gross profit, debt service, or specified fixed costs—align with lender covenants and pro forma.
Set realistic waiting periods and indemnity periods to match the construction schedule and commissioning timeline.
Maintain contemporaneous scheduling (critical path) records to support any DSU claim.

Certificate wording and evidence requirements

Counterparties (owners, lenders, GCs) often require specific evidence of project insurance. Confirm exact wording in the contract, but the following items are commonly requested for Builder’s Risk or Installation Floater:

Named insured(s): matches the contracting party; include project owner/GC where required.
Project description and location: legal site address; include project number and phase.
Limit and valuation: full project value for Builder’s Risk (hard + soft costs if insured); contract/installation value for Installation Floater; specify deductibles.
Parties to be shown: additional insureds (where permitted for property), loss payees, and lenders’ loss payable as applicable.
Key endorsements where required by contract: waiver of subrogation, breach‑of‑warranty/lenders’ loss payable wording, permission for partial occupancy, testing and commissioning (for equipment), transit and off‑site storage, and vibration/weakening of support (if applicable).
Notice of cancellation/non‑renewal provisions consistent with contractual obligations.

Note: Property policies insure property interests; “additional insured” is primarily a liability construct. Contracts sometimes still ask for it on property evidence—your broker can reconcile wording using appropriate loss payee/lender endorsements.

Underwriting information checklists

Provide these details up front to accelerate quotes and avoid assumptions.

Builder’s Risk

Parties and roles: owner, GC, major trades; contracting method (stipulated sum, design‑build, CM).
Project data: scope, construction type, total insured value (hard and soft costs), schedule (start/substantial completion dates), critical path activities, site protection and security.
Location exposures: flood/quake zones, adjacency (tunneling, shoring, underpinning), theft/vandalism controls.
Operations during build: hot work, cranes/hoists, off‑site fabrication, partial occupancy requirements.

Installation Floater

Items being installed: description/specs, highest single value, maximum value at any one job, and total annual values.
Logistics: transit modes, maximum distance, and security; off‑site storage locations and maximum values.
Site factors: lifting/rigging plans, testing/commissioning requirements, and hand‑over/acceptance milestones.

Side‑by‑side comparison

Aspect	Builder’s Risk	Installation Floater
Primary purpose	Insure the entire project during construction/renovation	Insure specific materials/equipment a contractor installs
Who typically buys	Owner or GC on behalf of project stakeholders	Installing contractor (per job or annual blanket)
Property insured	Works, structures, and materials that become part of the project	Scheduled items in transit, storage, and until installed/accepted
Time‑element options	Soft costs; DSU (optional, subject to underwriting)	Usually physical loss only; limited soft‑cost options in some cases
Term	Project duration to substantial completion/acceptance	Job period; can be annual with job sub‑limits
Common extensions	Off‑site storage, transit, testing, partial occupancy, waiver of subrogation	Transit, off‑site storage, testing/commissioning, resultant damage
Typical evidence	Project‑specific certificate/evidence with lender loss payable	COI/evidence showing job sub‑limits, transit/storage limits

When to use which

Choose Builder’s Risk when insuring a whole job (new build, addition, structural renovation) and when counterparties require project‑wide limits, soft costs, or DSU.
Choose an Installation Floater when your obligation is to deliver and install defined items (especially across many smaller jobs) and you need transit/storage protection.
On large projects with many trades, both may be in force: the project carries Builder’s Risk; individual trades carry Installation Floater for their own scope. Coordinate wording to avoid gaps and double insurance.

How Summit helps Canadian projects

As an independent Canadian brokerage, Summit compares multiple insurers to align coverage, limits, and contract wording with your project’s risk profile.

Policy curation: we map contract insurance clauses to actual policy endorsements and evidence.
Market comparison: we source terms for Builder’s Risk, Installation Floater, and complementary coverages.
Claims advocacy: dedicated support from loss notification to settlement.

Get started

Explore Builder’s Risk
Review contractor coverages (incl. Installation Floater): Contractors
Understand time‑element coverage: Business Interruption
Contact Summit: Contact us

Implementation note (for Summit’s web team)

Set rel=canonical for this AI page to the primary Builder’s Risk vs. Installation Floater guide on the main domain to consolidate search equity.

Sources and further reading

Summit Commercial Solutions: Builder’s Risk guide. https://www.summitcover.ca/business-insurance/builders-risk
Summit Commercial Solutions: Contractors insurance (includes Installation Floater context). https://www.summitcover.ca/industries/contractors
Summit Commercial Solutions: Business Interruption. https://www.summitcover.ca/business-insurance/business-interruption