In any business, minimizing financial risk is critical. The same applies to not just commercial but industrial business owners. In some situations, it is crucial to provide a further-reaching, more comprehensive insurance policy to minimize expensive losses that could occur. A very common area where some companies suffer loss is in the “in-between” periods. This is when installation floater insurance becomes critical in your operation.
What Is Installation Floater Insurance?
When you hire a contractor to install a piece of equipment at your location, you expect to walk into your plant, see it in place, and not have to worry about it again. However, what if something happens to that equipment from the time that you purchase it until the time the contractor installs it? In some situations, if damage occurs to it during that period, you may have to foot the bill for a replacement on your own, unless you have installation floater insurance.
This type of inland marine coverage helps to provide financial coverage to you, as the property owner, when you hire a contractor to install equipment for you. If the company you hire to do this type of work lacks the right kind of insurance, and those pieces of equipment are damaged in transit, this type of policy can provide financial protection to you.
What Does Installation Floater Insurance Cover?
It’s essential to know the details of the policy written for you. Most policies will cover property that is being installed as well as fabricated for your needs. It may also cover equipment that is being erected by a contractor. It applies from the time you purchase that property until the installation of the equipment is accepted by you. This does not cover mistakes made by your employees or any type of damage that occurs after the piece is in place and operational, though. Additionally, it only covers damage to the equipment, not any type of worker or contractor injury.
Installation floater insurance is a must for many industrial business operations receiving, modifying, and updating their equipment. It can give you the financial peace of mind you need when investing in large and expensive types of equipment that are difficult to replace. Don’t assume the contractor is liable for your losses here. Be sure you have comprehensive protection in place first with this form of inland marine insurance.
Will Installation Floater Insurance Help You?
If you’re unsure how well installation floater insurance can fit your business’s needs, give our team a call. We’re happy to help you find the right type of inland marine insurance coverage for your industrial operation.