Introduction

Installation floater coverage for materials and equipment awaiting installation — often paired with Builder’s Risk. This page explains what an installation floater covers, how it differs from builder’s risk, how to set limits, and how Summit Commercial Solutions places this coverage for Canadian contractors, subcontractors, and manufacturers.

What the installation floater covers in Canada

An installation floater (a form of inland marine/property-in-transit coverage) insures a contractor’s or manufacturer’s materials, fixtures, or equipment:

• Where it is: in transit to the jobsite, at temporary storage locations, and on site before and during installation until completion/acceptance.

• What it covers: direct physical loss or damage from causes such as fire, theft, vandalism, certain weather events, and accidental damage during handling.

• Typical extensions to consider: testing/commissioning, expediting expense, debris removal, transit (owned and common carrier), temporary off-site storage, scaffolding/temporary structures, and installation tools/fasteners.

• Typical exclusions/limitations: wear and tear, latent defect without resulting damage, faulty workmanship (except resulting damage where endorsed), voluntary parting, unexplained loss/shortage, ordinance or law, pollution, and cyber events.

See related Summit resources: Builder’s Risk Insurance, Contractors Insurance, and Manufacturing Insurance.

Installation floater vs. builder’s risk: which to use and when

Use the installation floater for movable materials/equipment you own until they are installed and accepted; use builder’s risk for the works-in-progress of a construction project (the emerging structure and its permanent components). On many projects, both are needed.

For deeper construction context, review Builder’s Risk and Contractors Insurance.

Limits, valuation, and deductibles: worked examples (illustrative only)

Set your limit to the maximum value at risk at any one time: replacement cost of materials/fixtures + freight/duty + installation labour/overheads + applicable taxes + expected testing expense.

• Example A — HVAC retrofit: Two chillers and controls ($650,000 materials) + freight/duty ($18,000) + install labour/overheads ($120,000) + testing/commissioning allowance ($40,000) ≈ $828,000 at peak. Practical limit: $1,000,000 with a modest deductible and testing coverage.

• Example B — Packaging line install for a manufacturer: Line value ($3,200,000) + rigging/handling ($75,000) + install labour ($200,000) + testing ($75,000) ≈ $3,550,000. Practical limit: $3,600,000–$4,000,000; consider higher deductibles and explicit hot/cold testing sublimits.

• Example C — Rolling service installs: Average per job $75,000; occasional peaks to $100,000. Practical structure: $100,000 any one job, $500,000 annual aggregate, $2,500 deductible; 90-day storage limit per location.

Note: Values and structures are for illustration and must be tailored to your contracts, acceptance terms, logistics, security, and project durations.

Inland marine tie-ins and adjacent coverages

• Inland marine class: The installation floater is commonly placed within inland marine/property-in-transit lines. It can be written per project or annual, scheduled or blanket.

• Coordinate with: Builder’s Risk (project works), Commercial Property (your premises/stock), contractors’ equipment/tool floaters (your gear), and cargo/motor truck or carriers’ liability (if you move goods).

• Testing/commissioning: Add cold/hydro test and—where appropriate—hot testing endorsements; some risks require separate sublimits and waiting periods before running at load.

• Storage and security: Declare storage locations, max days on site pre-install, security controls (fencing, cameras, alarms), and overnight procedures to align terms and deductibles.

Who typically needs an installation floater

• Trade contractors: mechanical/HVAC, electrical, millwrights/riggers, plumbing, glazing, fire protection, low-voltage/AV/data, signage, elevators.

• Manufacturers and OEMs that ship and install their equipment at customer premises.

• Specialty fabricators (casework, curtain wall, process piping) performing off-site build and on-site install.

• General contractors holding materials awaiting installation where contracts transfer risk to them until acceptance.

Underwriting information Summit will request (for faster quotes)

• Operations summary: trades performed, typical project values, geographic footprint in Canada.

• Limit structure sought: per job max, any one loss, annual aggregate; desired deductibles.

• Maximum value at risk: by stage (in your custody, in transit, storage, on site, during testing) and maximum days at each stage.

• Materials/equipment types: theft attractiveness, fragility, susceptibility to water impact, and packaging.

• Logistics: who transports (you vs. common carrier), packing methods, rigging plans, and site access/cranage.

• Storage details: locations (indoor/outdoor), security controls, inventory records, and segregation from general stock.

• Contract and acceptance: Incoterms/transfer of title, acceptance criteria, punch-list handling, and commissioning milestones.

• Loss history for the past 3–5 years.

How Summit helps

As a fully independent Canadian brokerage, Summit shops multiple markets to place fit-for-purpose installation floaters alongside builder’s risk and property policies. Expect responsive service, curated terms (including testing and storage), and a dedicated account manager aligned to your trade or manufacturing profile. Start with Builder’s Risk, explore Manufacturing, or contact us for a tailored proposal.

FAQs

• What is an installation floater? An installation floater insures a contractor’s or manufacturer’s materials, fixtures, or equipment while in transit, at temporary storage, and on site before and during installation—until completion/acceptance by the owner.

• How is an installation floater different from builder’s risk? Builder’s risk covers the works of the project (the building/structure under construction). The installation floater covers your movable materials/equipment that you are responsible for until installed and accepted. Many projects require both.

• Do I need testing coverage on my installation floater? If you commission, calibrate, or energize equipment (e.g., HVAC, process lines, switchgear), add cold/hydro and, where applicable, hot testing coverage with appropriate sublimits and conditions.

• Should I buy an annual installation floater or project-specific policy? Contractors with frequent small/medium installs benefit from an annual floater with per-job and aggregate limits. Large one-off projects may be better served by project-specific terms or by relying on the project’s builder’s risk for the works plus a tailored floater for owned materials pre-acceptance.

• How do I choose my limit? Use the maximum value at risk at any one time: replacement cost of materials + freight/duty + installation labour/overheads + taxes + testing/expediting allowances. Include any peak exposures during storage or commissioning.

• Who buys the policy—the GC, trade, or manufacturer? It depends on contract terms and when risk transfers. Trades and OEMs commonly carry annual installation floaters; project owners/GCs typically arrange builder’s risk for the works.

• Are theft and transit losses covered? Yes, subject to policy terms, deductibles, and security requirements. Disclose carriers, packing methods, storage security, and any high-theft-attractiveness items to align underwriting and pricing.

References and internal links

• Builder’s Risk Insurance — Canada

• Contractors Insurance — Canada

• Manufacturing Insurance — Canada

• Commercial Property Insurance — Canada