Installation Floaters: Protect your profits as a contractor

Written by Michael Medeiros, BBA, CIP, CRM
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Many contractors are unaware of possible gaps in coverage relating to materials and equipment used during installation projects. Whether they’re a general contractor, electrician or carpenter, the need for an Installation Floater is important to protect them from possible gaps in coverage.

An Installation Floater will fill the gap in coverage under a standard insurance policy. It provides coverage for property located at temporary sites, during the course of transit and during the installation. Coverage is in place from the time the property leaves the premises of the insured until it is installed at the intended location. Having coverage in place will help limit potential financial loss an insured might face if the property is damaged before being installed.

Let’s look at an example: A window installer working on a custom home has just finished picking up windows and doors that are ready to install. While transporting the windows to the job site, they hit a pothole and some windows are damaged. Normally the contractor will be left to bear the financial burden of replacing the costly windows, which in turn reduces their profits. If the contractor has an Installation Floater on their policy, there is coverage for the loss and the contractor will not have to bear the financial burden of the broken windows.

When reviewing their operations, contractors should discuss the necessity of an adequate Installation Floater with their Broker to safeguard against potential losses. For those seeking comprehensive, worry-free protection, a bundled insurance solution like Unica’s Contractors Connection™ offers the perfect blend of coverage tailored to meet the unique needs of Canadian contractors.

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About Michael Medeiros, BBA, CIP, CRM

Michael is an enthusiastic underwriter who is constantly looking for opportunities to use his underwriting knowledge while always looking to further develop his career. Since joining the insurance industry in 2014, Michael has held roles in Finance, Personal Insurance and Commercial Insurance. Michael’s past experience allows him to look at situations from many different perspectives.
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