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Builder’s Risk vs. Installation Floater (Ontario & BC) — What Manufacturers Actually Need

Introduction

Manufacturers expanding plants, installing new production lines, or shipping high‑value equipment face a recurring question: do we place this exposure under Builder’s Risk (course of construction) or an Installation Floater? The right choice depends on scope, jobsite ownership, transit/storage needs, and how your contracts allocate risk. This guide clarifies the differences for Ontario and British Columbia manufacturers and shows how Summit structures programs using Builder’s Risk and Installation Floater solutions available through our Contractors Insurance practice.

Quick comparison (at a glance)

Decision factor Builder’s Risk (Course of Construction) Installation Floater
Primary purpose Insure a building/structure while it is being built, renovated, or expanded Insure materials, machinery, and equipment being installed by you at a customer’s site
Typical insured party Owner, developer, or GC; manufacturers acting as owners for plant expansions Manufacturer, installer, or contractor responsible for the install
Property where covered At the project site (can include specified offsite/temporary storage) In transit, at temporary storage, and at the jobsite until acceptance/commissioning
Common term Project term (from groundbreaking to completion/occupancy) Single‑project or blanket annual covering many jobs
Soft costs/BI options Often includes soft costs and can include business interruption during construction May include testing/commissioning and limited soft costs; BI usually not primary intent
Good fit New builds, structural additions, major renovations to your plant Machinery installs, retrofits, production line swaps at third‑party or owned sites
Not ideal for Pure equipment swap with minimal building works Ground‑up construction controlled by the owner/GC

When manufacturers typically need Builder’s Risk

Use a Builder’s Risk policy when the project changes the building itself or adds fixed improvements at your site.

  • Common manufacturing scenarios

  • New facility construction or plant expansion adding square footage

  • Structural renovations (e.g., roof, foundations, building systems) supporting new equipment

  • Multi‑trade projects where wrap‑up style protection is preferred

  • Coverage characteristics

  • Protects the works, materials, and often onsite theft, fire, vandalism, and weather perils

  • May extend to site prep and certain temporary works when declared

  • Options for soft costs and business interruption tied to a covered loss

  • Learn more: Builder’s Risk Insurance

When an Installation Floater is the right fit

Choose an Installation Floater when your primary exposure is delivering, staging, and installing equipment or production components—especially at a customer’s premises.

  • Common manufacturing scenarios

  • Shipping CNC machines, packaging lines, ovens, tanks, or robotics to customer sites

  • Field retrofits, line relocations, and upgrades with testing/commissioning

  • Repeated installs across multiple jobsites over the year (use an annual/blanket form)

  • Coverage characteristics

  • Protects scheduled property in transit, in temporary storage, and during installation

  • Can include testing/commissioning coverage up to specified limits and timeframes

  • Designed for the installer’s interest; coordinates with the customer’s property policy

  • Learn more: Installation Floater under Contractors Insurance

Ontario: contract realities and underwriting notes

  • Contract requirements you’ll commonly see

  • Customer named as additional insured where applicable; clear waiver of subrogation language

  • COIs evidencing Installation Floater limits for the full value of equipment plus freight, taxes, and installation cost

  • For plant expansions you control as owner, a project‑specific Builder’s Risk with defined start/finish dates

  • Underwriting focus points in Ontario

  • Winter freeze exposures during staging; specify heat/monitoring plans for conditioned equipment

  • Urban jobsite security, crane/rigging plans, and overnight storage protections

  • Accurate declared values including duty, taxes, and soft costs to avoid underinsurance

British Columbia: contract realities and underwriting notes

  • Contract requirements you’ll commonly see

  • Evidence of transit and jobsite coverage from origin to acceptance, including temporary storage at BC warehouses

  • Additional insureds and cross‑liability wording aligned with prime contract

  • For structural works at your plant, Builder’s Risk with defined testing/commissioning periods

  • Underwriting focus points in BC

  • Wildfire and flood‑adjacent geographies may drive higher deductibles or security requirements

  • Access logistics over mountain passes and ferries—declare extended transit durations and staging points

  • Clear testing protocols and acceptance criteria to define when risk transfers

How to set limits, deductibles, and key extensions

  • Sum insured

  • Builder’s Risk: project hard costs plus eligible soft costs; include major equipment if permanently installed

  • Installation Floater: invoice value of equipment plus freight, taxes, crating, rigging, and installation labour

  • Key extensions to consider

  • Theft from jobsite/vehicle, transit including loading/unloading, temporary storage, and testing/commissioning

  • Soft costs and, for Builder’s Risk, optional business interruption

  • Deductibles and special sublimits

  • Align deductibles with contract tolerances; watch sublimits on transit, testing, and theft

  • Coordination with other policies

  • Your Commercial Property for owned plant assets remains separate from jobsite exposures

COIs the same day you bind coverage

Need a certificate of insurance for a bid or site access? After binding, Summit can typically issue COIs the same business day. To expedite:

  • Send contract insurance clauses and all additional insured legal names

  • Provide full project/job details, site addresses, and required effective dates

  • Share equipment lists, transit route, testing plan, and any storage locations Connect with us via Contact Us.

What Summit needs to quote fast

  • Project description, timeline, and responsible parties (owner/GC/installer)

  • Values: hard costs or equipment install amount plus freight/taxes/soft costs

  • Locations: origin, storage points, jobsites (Ontario or BC), and transit method

  • Security/safety plans (overnight storage, rigging, winterization/testing)

  • Contract insurance wording and COI requirements

FAQs

  • Can a manufacturer buy both policies? Yes—commonly a Builder’s Risk for the plant expansion and an Installation Floater for machinery arriving later.

  • Are tools and contractor’s equipment covered? Not by default under an Installation Floater. Insure tools and mobile equipment under a contractor’s equipment form within Contractors Insurance. Fixed plant assets remain under Commercial Property.

  • When does Installation Floater coverage end? Typically at completion/acceptance or after testing/commissioning—confirm contract definitions and policy wording.

  • Who should be the named insured? The party with the financial interest: owner/developer for Builder’s Risk; installer/manufacturer for Installation Floater. Add other parties as required by contract.

Why Summit for construction and manufacturing placements

  • Independent Canadian brokerage that shops multiple markets to optimize price/terms

  • Dedicated account managers and rapid documentation turnaround for jobsite COIs

  • Deep familiarity with construction/manufacturing risks across Ontario and BC Explore our related expertise: Builder’s Risk, Manufacturing Insurance, and Contractors Insurance.