Why Agents Shouldn’t Neglect Installation Floater Insurance

“Yeah, I love watching opportunities pass me by!” … said no one ever.

And yet, so many subcontractors and service providers go without adequate insurance during their installation jobs. Considering that you have access to coverage that could be the life jacket they didn’t realize they needed, it could be the beginning of a beautiful relationship!

After all, standard builders risk policies do not always extend to subcontractors. That can be problematic if a loss occurs while material to be installed is in storage, in transit, being staged, or even during installation itself.

Fortunately, there’s always installation floater builders risk insurance. In addition to covering the insured’s losses that occur on the job site, this type of coverage offers tailored protection for materials, equipment, supplies and machinery in temporary storage, while in transit, after arrival at the job site, and during installation.

Who needs installation builders risk coverage?

Let’s round up the usual suspects. Prospective buyers who could benefit from this type of policy include trade contractors, such as:

• Plumbers
• Electricians
• Carpenters
• HVAC installers
• Window installers
• And other providers

There are several ways to pinpoint potential clients for installation builders risk insurance. One method is to read the installation policy to get a thorough understanding of what it covers. Doing so can help insurance agents identify customers who may need additional coverage. It can also be worthwhile to spend some time reviewing your existing client base for opportunities you might be overlooking, such as:

• Subcontractors and service providers. Any subcontractors or service providers who fit the description above could be potential builders risk clients. Someone who subcontracts on an occasional basis may not be interested in purchasing additional coverage. However, someone who installs windows, HVAC units, or other materials on a regular basis may want to explore purchasing an installation floater policy that would give them a broader scope of coverage.
• Existing clients with other insurance policies. You may already have your subcontractor clients insured with other policies, such as worker’s compensation, business property, or other types of business coverage. After reviewing their portfolio of work, suggesting installation builders risk insurance could help fill coverage gaps.

When does it make most sense to offer an installation floater policy?

Subcontractors who install windows, doors, or HVAC units will find that builders risk coverage is generally easy to obtain, and that it’s cost-effective for the premium paid.

However, service providers involved with higher-value projects are also good prospects for this type of coverage. For example, subcontractors who install solar panels, hired to erect playground equipment for municipalities or private business owners, and those who install equipment for water treatment plants could also benefit from installation builders risk insurance.

Are installation projects covered in an existing policy?

Builders risk policies can differ from carrier to carrier. In general, builders risk policies for new construction and remodeling cover anyone with an insurable interest, including contractors and subcontractors alike while on the job site. However, this may not apply to materials in transit or in temporary storage. And without adequate coverage in place, subcontractors are at risk.

Agents can provide a valuable service to clients and prospects by reviewing policies and helping property owners, contractors, and subcontractors determine whether their builders risk policies actually provide the coverage clients think they provide. Of course, agents should also review policies with an eye toward determining whether they provide the coverage clients actually need.

Help Contractors and Subcontractors Understand Installation Risks

Rallying around clients to identify the entire scope of their business risks can help solidify and deepen the agent / client relationship. Of all the insurance agents in all the towns in all the world, they may choose to return to you time and time again, and even send referrals.

Here’s to looking at installation jobs! Get more familiar with installation builders risk coverage when you read our FAQ for answers to agents top questions.

This is intended as a general description of certain types of insurance and services available to qualified customers. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.