Equipment floater insurance for contractors

Why it is called a floater

Commercial property policies cover things at a listed address. Contractors equipment spends most of its life somewhere else. A floater "floats" with the equipment, so coverage applies at any location within the policy territory, usually the continental United States and Canada.

Most equipment floaters are written on an open-perils basis. Everything is covered unless the policy excludes it, which is the opposite of a named-perils form that lists only fire, theft and a few others.

What an equipment floater usually covers

• Theft of the machine, including theft from an unlocked job site when the policy does not require it be secured
• Collision and upset, the most common loss for loaders, skid steers and excavators
• Fire, vandalism, windstorm, flood and falling objects
• Damage while loading, unloading or hauling on a trailer
• Equipment you rent or lease from others, when that extension is added

Scheduled or blanket

Larger machines are usually scheduled, meaning each one is listed with its year, make, model, serial number and value. Smaller pieces can go under a blanket limit with a per-item maximum, so a new compactor is covered the day it arrives without an endorsement.

Most contractors use both: schedule anything over a set value and let a blanket limit pick up the rest. See the full comparison on the owned equipment page.

What is usually excluded

• Mechanical or electrical breakdown and normal wear and tear (equipment breakdown can sometimes be added)
• Equipment while it is working underground or underwater, unless endorsed
• Licensed road vehicles, which belong on a commercial auto policy
• Unexplained disappearance or inventory shortage
• Loss caused by overloading a crane or boom beyond its rated capacity

Gaps to ask about before you buy

Two floaters can look the same on a quote and respond very differently to a claim. These are the conditions worth reading closely.

What to do after an equipment loss

1. Make the site safe and stop further damage, for example by moving a damaged machine out of standing water or covering exposed controls.
2. For theft or vandalism, file a police report the same day and keep the report number. Give police the serial number and any GPS tracking data.
3. Photograph the machine, the scene and any signs of forced entry or cut locks before anything is moved or repaired.
4. Report the claim to your insurance contact with the year, make, model, serial number and where the loss happened.
5. Get a written repair estimate from a dealer or qualified shop, and do not start major repairs until the adjuster has had a chance to inspect.
6. If you need to rent a replacement to keep the job running, keep the rental contract and invoices, since rental expense coverage, if you carry it, will ask for them.