Commercial Builder’s Risk Package NY can be invaluable for most construction projects, but they don’t cover every possible scenario. In particular, subcontractors and service providers often w on installation jobs only to find that they aren’t adequately covered‒or aren’t covered at all‒for some situations.
As helpful as standard builders’ risk policies can be, their coverage doesn’t always extend to service providers and subcontractors. This can result in numerous problems when problems occur with materials that are in storage or are being transported. Builders’ risk may also not cover materials that are being staged or being installed.
These are the situations wherein installation floater policies could come in handy. This is a versatile and flexible type of insurance that is tailor-made for subcontractors and service providers. Apart from covering losses that take place at the jobsite, they also cover machinery, equipment, and supplies while they are in storage, being transported, or being installed.
Professionals that require installation floater policy
Installation floater policies can be useful for almost every construction professional. But the specialists that can truly benefit from these policies are trade contractors, such as:
- Carpenters
- Electricians
- Plumbers
- HVAC technicians
- Window installers
Installation floater policies can also benefit many other providers, especially those involved in the installation, transport, and storage of construction materials, machinery, and equipment.
There are ways by which you could determine whether certain clients will benefit from installation floater policies or they would be adequately covered with builders’ risk insurance. You could start by reading through the insurance policy, which should give you a good idea of what types of risks are covered.
It is beneficial for insurance agents to identify potential clients that may require additional coverage. Insurance brokers may already have existing clients that could benefit from the coverage that installation floater policies provide. For instance, the following may require more coverage than what they would get with builders’ risk insurance:
Subcontractors and service providers. Most subcontractors and service providers will probably already be covered by builders’ risk insurance. Those who hire subcontractors only occasionally may not need the additional coverage provided by an installation floater policy.
However, window installers, HVAC technicians, and those involved in equipment and systems installation may require more coverage than they are currently getting with builders’ risk. These could be potential clients for installation floater policies.
Clients with other types of insurance. Professionals who deal with subcontractors regularly may already have different types of insurance, including worker’s compensation, business property, or other types of policies typically designed for businesses of a similar nature. But they may have coverage gaps that could leave them at risk for inevitable loss or damage scenarios. Again, these types of clients could be prospects for installation floater policies.
What other cases could benefit from installation floater policies?
Builders’ risk is generally the go-to type of insurance for most construction professionals. They offer fairly broad coverage; they are easy to obtain, and, in most cases, they provide excellent value for the money. For window and door installers and HVAC technicians, builders’ risk might be the only type of insurance necessary.
But once these professionals take on high-value projects, they might find the coverage provided by builders’ risk inadequate. For example, tasks such as installing solar panels, erecting playground equipment, and setting up water treatment facilities could require much more extensive coverage than what is available with most builders’ risk policies. For these cases, installation floater policies can be indispensable, particularly if the work is contracted by municipalities and private businesses.
Does builders’ risk cover installation projects?
Like all insurance policies, the coverage provided by builders’ risk can vary considerably depending on the insurance provider. They are generally intended for new construction and remodeling projects, providing coverage for contractors, subcontractors, and those who work with insurable materials and equipment on job sites.
But the biggest issue with builders’ risk is that it doesn’t cover materials in storage or those being transported. Because these situations frequently occur during the course of a project, subcontractors may not be adequately protected from the risk of loss or damage.
As an insurance broker, it would be beneficial to highlight the importance of installation floater policies with your clients. Identifying potential business risks they could face will help you provide them with the appropriate insurance solution. Even if they already have builders’ risk, the nature of their business could make an installation floater policy essential.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
