Top 3 Recommended Policies

By: Lance Hale
Licensed Commercial Insurance Specialist
425-320-4280
Expensive tools, mobile machinery, and specialty gear drive countless projects and livelihoods across Washington. From Puget Sound shipyards to wheat farms near Walla Walla, valuable equipment is constantly on the move, exposed to theft, storms, and job-site hazards. An equipment floater policy—sometimes called an inland marine floater—was designed to protect those investments wherever they go. The following guide examines how these policies work, why they matter in the Evergreen State, and what business owners should consider before signing on the dotted line.
Why Equipment Floater Insurance Matters in Washington
Washington’s business landscape is unusually diverse. Aerospace fabrication, commercial fishing, film production, viticulture, and sprawling public-works projects all coexist within a single jurisdiction. Each sector depends on specialized gear that rarely stays put. A study by the National Equipment Register shows that 74% of stolen construction equipment is taken directly from open job sites, a common arrangement in urban Seattle as well as in remote corners of the Olympic Peninsula. Replacing even one midsized excavator can exceed $200,000, and that figure skyrockets once downtime and rental fees are added.
Weather compounds the risk. Western counties experience some of the nation’s highest annual rainfall totals, while the Cascade Range funnels strong winds that topple staging and blow debris into sensitive instruments. To the east, dust storms and summer wildfires threaten farm machinery. Traditional property insurance generally protects equipment only at the insured premises, leaving businesses to finance losses that occur in transit or on temporary sites. An equipment floater bridges that gap, maintaining continuous protection as assets cross the state or travel out of state on contract work.
Moreover, the unique geographic and economic factors of Washington create a complex web of logistical challenges. For instance, the state's varied terrain—from coastal areas to mountainous regions—often necessitates the use of specialized equipment that can be costly to replace. The film industry, for example, relies heavily on high-end cameras and lighting rigs that are not only expensive but also vulnerable to theft and damage during transport. An equipment floater insurance policy ensures that filmmakers can focus on capturing stunning visuals without the constant worry of potential financial loss due to unforeseen events.
Additionally, the increasing trend of remote work and flexible job sites further underscores the importance of equipment floater insurance. As businesses adapt to changing work environments, equipment is often moved between multiple locations, increasing the risk of accidents or theft. This is particularly relevant for sectors like viticulture, where machinery must be transported to different vineyards throughout the harvest season. An equipment floater provides peace of mind, allowing businesses to operate efficiently without the fear of incurring significant losses due to equipment-related incidents, thereby fostering a more resilient and adaptable economy in Washington.

What Exactly Is Equipment Floater Insurance?
Equipment floater insurance falls under the “inland marine” branch of commercial property coverage. Instead of covering a fixed building, it protects movable equipment and tools on an “all-risk” basis—meaning losses are covered unless a peril is expressly excluded. Policies can be written to cover unscheduled items, such as every tool under $2,500, or to cover high-value assets on a scheduled basis with serial numbers listed. Either approach shields property whether it is at a permanent yard, aboard a flatbed truck barreling up Snoqualmie Pass, or operating on a client’s site.
The policy pays to repair or replace covered gear after theft, fire, vandalism, collision, overturn, or most weather events. Business interruption costs can be added through an optional endorsement, compensating for lost revenue while vital machinery is down. Carriers also offer “rented/leased equipment” extensions, crucial for contractors who frequently hire supplemental gear during peak season.
One of the key advantages of equipment floater insurance is its flexibility in coverage options, which can be tailored to fit the unique needs of various businesses. For instance, construction companies often rely on a wide array of tools and machinery that can vary significantly in value and type. This policy allows them to ensure that both high-value items, like excavators and cranes, and smaller tools, such as drills and saws, are all adequately protected. Additionally, many insurers provide the option to include coverage for equipment that is temporarily located at job sites, which is particularly beneficial for businesses that operate in multiple locations or on short-term projects.
Moreover, equipment floater insurance can also serve as a vital risk management tool. By providing comprehensive coverage, it helps businesses avoid significant financial losses that could arise from unexpected incidents. For example, if a contractor's essential machinery is damaged in transit or stolen from a job site, the costs associated with replacing or repairing that equipment can be substantial. With an equipment floater policy in place, businesses can mitigate these risks, ensuring they remain operational and can continue to meet client demands without interruption. This peace of mind allows business owners to focus on growth and efficiency, rather than constantly worrying about the potential for loss or damage to their essential tools and equipment.
Who Needs an Equipment Floater Policy?
Any entity that owns, leases, or routinely transports high-value gear stands to benefit. General contractors, excavation firms, landscapers, arborists, utility contractors, HVAC installers, and event-production companies all rely on assets that rarely remain at their headquarters. Agricultural producers hauling combines between leased acreage, craft breweries attending statewide festivals, and wedding photographers carrying five-figure camera rigs likewise face exposure. Even tech startups that travel to conventions with demo equipment should weigh the coverage against the cost of paying a six-figure loss out of pocket.
Risks Unique to Washington State
Although many perils mirror those in other regions, several factors magnify exposure in Washington. Understanding these nuances helps buyers tailor coverage terms and limits.
Weather-Related Perils
Western Washington receives more than 150 rain days per year, and coastal storms can push wind speeds past 60 mph. Heavy precipitation saturates soil on construction projects, leading to crane tip-overs and flooded trenches where pumps and generators sit. Meanwhile, snow loads east of the Cascades can collapse temporary shelters that protect equipment cherry pickers, boom lifts, and scissor lifts from ice buildup.
High Theft Hotspots
Washington ranks in the top ten states for stolen heavy equipment according to the Insurance Information Institute. The I-5 corridor sees concentrated activity, but smaller communities along U.S. Route 97 are not immune. Organized crime rings target skid steers and utility trailers because identification numbers are easily altered, and such assets can cross into British Columbia within hours. Without a floater, the financial blow lands squarely on the business owner.
Transportation Challenges Across Terrain and Water
Ferries connect dozens of islands where contractors must ferry backhoes or generator pods. Loading and unloading at congested docks increases the chance of accidental drops into salt water. On land, steep grades like the Lewiston Hill approach on U.S. Route 12 strain braking systems; overturned flatbeds often total the cargo before responders arrive. These transportation characteristics underscore the need for coverage that follows equipment no matter the route.
How Coverage Works: From Inland Marine to Scheduled Items
Policies start with a declarations page listing effective dates, territory, deductibles, and overall limit. Owners then decide whether to list equipment individually or bundle it. Scheduled coverage works well for cranes, tower lighting systems, and other individual items worth more than $10,000. Unscheduled “blanket” coverage may be more efficient for power drills, saws, and hand tools whose individual value is lower. Either way, the total limit should equal the combined replacement cost of all items at peak usage.
Most carriers reimburse on a replacement-cost basis for gear less than five years old; older items may default to actual cash value unless the policy is endorsed. Valuation language is critical because depreciation on specialized machinery can be severe. The contract can also be modified to include rental reimbursement, debris removal, and pollution cleanup if hydraulic fluids spill after a rollover.
Key Policy Features to Look For
An equipment floater is only as strong as its endorsements. Buyers should verify that the policy extends to leased or borrowed equipment if they ever rent excavators during a large municipal project. A “newly acquired property” clause gives automatic coverage for 30 or even 90 days when a business buys additional equipment—vital for avoiding gaps during busy bidding seasons when purchases happen fast. Worldwide or at least Canada extensions are valuable for outfits that follow timber contracts across the border.
Another crucial feature is the “soft costs” or “continuing expenses” endorsement. It reimburses interest on equipment loans, lease payments, and wages for idle operators while a claim is adjusted. For high-tech firms, “property of others” coverage protects demonstration models entrusted to the policyholder. Lastly, pay attention to deductibles and whether they apply per occurrence or per item; multiple deductibles after a trailer theft can erode the recovery.

Typical Exclusions and How to Address Them
Flood and earthquake are typically carved out, leaving equipment vulnerable in low-lying Skagit County or near the Cascadia Subduction Zone. Mechanical breakdown, wear and tear, rust, and voluntary parting are standard exclusions as well. Businesses can fill many of these gaps by purchasing standalone flood or breakdown policies or by adding endorsements when available. Thorough maintenance logs and serial-number photographs also help defeat claims of prior damage.
Determining the Right Coverage Limits
Inventory fluctuates in seasonal industries, so the limit should capture the maximum value on hand at any time during the policy term. A common mistake is using book depreciation figures instead of replacement cost; the difference between a three-year-old telehandler’s book value and the price of a new model can exceed $40,000. Regular audits—quarterly for dynamic fleets—prevent underinsurance. Spreadsheet tools that incorporate MSRP and freight also make renewal negotiations smoother.
Keep in mind that high demand pushes up replacement times. Manufacturers of compact track loaders reported lead times of 20–24 weeks in recent industry surveys. Businesses may need to rent interim equipment at premium rates, so consider adding a loss-of-use extension equal to at least 20 % of total equipment value.
Cost Factors and Premium Benchmarks in Washington
Premiums hinge on exposures such as average equipment value, theft controls, and radius of operations. A contractor with $500,000 in scheduled items, GPS tracking on every piece, and fenced job sites might pay 2.0–2.5 % of insured value, or roughly $10,000–$12,500 annually. Remove the tracking devices and operate in high-theft counties, and the rate can climb past 4 %. Coastal work often triggers wind-storm surcharges due to historical loss data.
Deductible choice also affects pricing. Increasing a $1,000 deductible to $2,500 often trims 8–12 % off the premium without crippling cash flow after a claim. Bundling the floater with general liability and commercial auto may qualify for additional credits. Independent agents who specialize in inland marine lines tend to maintain proprietary programs with carriers that favor certain trades, translating into sharper rates for clients.
Claims Process: What Happens After Loss
Prompt notification sets the tone. Most carriers require initial notice within 24–48 hours, followed by a sworn proof of loss within 60 days. Photographs, purchase receipts, GPS location reports, and police case numbers streamline the adjuster’s work. Adjusters typically arrange an on-site inspection within five business days unless the loss involves weather-impaired access. For totaled items, salvage bids are collected and deducted from the settlement if the insured retains the damaged equipment.
Once valuation is agreed upon, a replacement-cost claim is paid in two tranches: actual cash value up front and the holdback once proof of replacement is supplied. Using preferred vendors speeds up the process, but policyholders preserve the right to choose their own suppliers provided costs are reasonable. Most straightforward claims settle in under 30 days; contested valuations or suspected fraud extend the timeline substantially.
Regulatory Landscape and Compliance
Washington does not mandate equipment floater coverage by statute, but many public works contracts require proof before bid award. Insurance certificates must list the governmental entity as additional insured and provide 30-day cancellation notice. Failure to maintain coverage can lead to contract termination and disqualification from future bids for up to three years. The Office of the Insurance Commissioner oversees claim-handling standards, making it crucial that carriers hold admitted status or authorized surplus lines authority.
Practical Tips for Reducing Premiums
Robust risk management pays dividends. Installing telematics and hidden kill-switches can drop theft-related rates by up to 25 %. Fencing remote job sites, adopting after-hours lighting, and engraving serial numbers discourage criminals and satisfy underwriters. Maintaining an updated inventory spreadsheet—and sharing it proactively—allows carriers to spot anomalies before they become claims, fostering good will and sometimes earning loss-control credits.
Real-World Case Studies from Washington Businesses
Construction Company in Spokane
A medium-sized contractor operating near Spokane International Airport suffered a $180,000 theft of two skid steers and a trailer during a single weekend. Thanks to a blanket floater limit of $750,000 and GPS tracking that pinpointed the last known location, the adjuster approved replacement-cost payment in 18 days. The company had also purchased a rental reimbursement endorsement, covering $6,500 in short-term rental fees that kept a municipal sidewalk project on schedule.
Marine Research Outfit in Anacortes
An interdisciplinary team transporting remotely operated vehicles (ROVs) to the San Juan Islands lost a unit worth $320,000 when a crane cable snapped, dropping it into 200-foot-deep water. The floater’s “property in water” endorsement allowed coverage even after submersion. Salvage was impossible, but the policy paid full replacement cost within five weeks, and the organization used the settlement to acquire an updated model with superior imaging sensors.
Film Production Crew in Seattle
A multimedia studio filming a commercial on Capitol Hill had $95,000 in camera lenses stolen from a box truck overnight. Although the general liability policy did not respond, the equipment floater did. Valuation was complicated by rapid tech depreciation, yet meticulous purchase records persuaded the carrier to provide replacement-cost settlement minus a modest $1,000 deductible. The crew resumed shooting after a two-day delay, well within the brand sponsor’s deadline.
Conclusion
From bustling ports to alpine passes, Washington businesses depend on equipment that rarely stays parked. Weather extremes, terrain challenges, and persistent theft rings conspire to turn a single loss into a profit-draining event. Equipment floater insurance offers a flexible, travel-ready safety net that traditional property policies cannot match. By understanding key coverages, exclusions, and pricing levers, organizations large and small can tailor a policy that keeps projects moving and balance sheets secure—no matter where the next job takes them.