Washington Installation Floater Insurance

An installation floater is a type of inland marine policy that protects materials, machinery, fixtures and sometimes even labor costs while they are being transported to a jobsite, stored off-site, or installed into a building under construction. Coverage follows the item rather than staying fixed at a single location, meaning a shipment of fiber-optic cabling is covered while it is loaded onto a truck in Tacoma, stored overnight in Yakima and finally installed in a data center in Quincy. This flexibility is particularly beneficial for contractors who often work on multiple projects simultaneously, allowing them to manage their resources effectively without the fear of incurring significant losses due to unforeseen events.

Most policies are written on an “all risks” basis, which means losses are covered unless they are specifically excluded. Limits are typically set on a per-project or blanket basis, and because the policy is considered an inland marine contract, it can be customized much more readily than a standard property form. This customization can include specific endorsements that address unique risks associated with particular projects, such as coverage for high-value equipment or specialized materials that may be more susceptible to damage during transit or installation.

The Origins of the Floater Concept

The term “floater” dates back to the 19th century when mobile property—jewelry, fine art, even circus tents—needed coverage as it moved from place to place. Over time, specialized floaters emerged for contractors. Today, installation floaters are a staple of risk management programs for electricians, plumbers, HVAC dealers, telecom installers, millwork fabricators and many other trade specialties in Washington. The evolution of this insurance type reflects the growing complexity of modern construction projects, where materials and equipment are often sourced from various locations and require protection throughout their journey.

Furthermore, the rise of technology in construction has introduced new challenges and opportunities for installation floater insurance. With the increasing use of advanced machinery and equipment, such as drones for surveying and 3D printing for components, the value of items being transported and installed has surged. This has led to a greater emphasis on ensuring that installation floaters not only cover traditional materials but also the sophisticated tools and technologies that are now integral to construction processes. As a result, contractors are encouraged to work closely with their insurance providers to ensure that their policies adequately reflect the current landscape of their operations, providing peace of mind as they undertake ambitious projects.

Washington State’s construction sector booked more than $27 billion in spending last year, according to the Associated General Contractors of America. The sheer volume of jobsite activity translates into crowded laydown yards, congested material deliveries and tight installation schedules. Whenever valuable property sits idle—even for a single night—risk increases.

Standard commercial property insurance usually requires that equipment be located at the named insured’s address when the loss occurs. Builders risk policies may protect the structure and materials that are already attached to it, but they can leave a gray area for goods in transit or stored temporarily off-site. An installation floater bridges those gaps, making sure that if lightning strikes a supply trailer in Everett or thieves snatch copper wiring in Vancouver, the contractor’s balance sheet does not take the hit.

Real-World Drivers of Loss

State Farm’s 2023 Inland Marine Theft Report lists Washington among the top ten states for construction-site theft, with average losses approaching $14,000 per incident. Pacific storm systems also bring wind gusts that routinely exceed 50 mph west of the Cascades, creating a double whammy of weather and theft exposures. Even with strict jobsite security protocols, a tailored installation floater often becomes the last line of defense.

Although every insurer drafts its own wording, most Washington installation floaters contain the following core protections:

1. Property in Transit

Coverage begins the moment the insured item is loaded for transport. Whether goods are moved by the contractor’s own fleet, a common carrier or a subcontracted hauler, the floater follows the shipment. For high-value items such as switchgear or MRI components, that protection can easily save six or seven figures.

2. Temporary Off-Site Storage

Just-in-time delivery is the goal, but modern supply chain realities often force contractors to store materials for days or weeks. The policy typically covers such storage within a 50-mile radius of the jobsite; broader zones are negotiable if multiple sites share staging areas.

3. Property Awaiting Installation

Items on the jobsite but not yet secured inside the structure—think HVAC rooftop units resting on skids—remain insured against theft, wind, fire and accidental damage. Once the item is permanently installed, coverage under the floater usually ends and builders risk or the building’s permanent property insurance takes over.

4. Labor, Profit and Soft Costs

Many Washington underwriters allow contractors to insure not only the replacement cost of materials but also the labor already invested and even the markup that would have been earned. Some forms extend to soft costs such as re-inspection fees or permitting expenses triggered by a covered loss.

No insurance policy covers every conceivable event. Knowing what is not included is just as important as knowing what is. The most frequently encountered exclusions in Washington installation floater contracts include:

Employee Dishonesty

Theft by the insured’s own employees is usually excluded. Separate crime insurance or a fidelity bond may be necessary to close this gap.

Mechanical Breakdown

If a newly installed chiller fails because of an internal defect rather than an external peril, the floater will not respond. Equipment breakdown insurance is the typical solution.

Wear and Tear

Gradual deterioration, corrosion and latent defects are excluded. Coverage targets sudden, accidental events rather than maintenance issues.

Pollution and Mold

Contamination caused by hazardous materials is generally excluded. Specialized environmental policies are required for those exposures.

Confusion sometimes arises because an installation floater is an inland marine form, while builders risk is technically a property form. The main distinctions boil down to scope and ownership.

Builders risk insures the entire project: foundation, framing, wiring, drywall, finishes and sometimes even temporary structures like scaffolding. The coverage applies whether the property belongs to the owner, the general contractor or a subcontractor. An installation floater zooms in on the specific interest of the contractor who purchased the policy, typically the party installing a major component.

Put simply, if a roofer cranes bundles of shingles onto a 12-story condominium, the shingles are covered by the roofer’s installation floater until they are nailed down. The building skeleton, elevator shafts and common areas remain under the general contractor’s builders risk program. Separating these layers prevents duplicative premiums while ensuring that no property is left uninsured.

Accurately calculating policy limits can be tricky, especially on complex Washington jobs that involve staged deliveries. Underinsure and the contractor may have to pay thousands out of pocket. Overinsure and the policyholder funds needless premium. Most underwriters recommend the following steps:

Create a Detailed Schedule of Values

List each item to be insured, its replacement cost including freight and taxes, and the planned installation dates. Update the schedule as change orders flow in.

Use Installation Price, Not Purchase Price

The replacement cost should reflect what it would take to acquire and reinstall the item after a loss, not simply what the supplier charged originally. Escalating steel and copper prices can widen that gap significantly.

Consider Peak Season Endorsements

For contractors who handle seasonal surges—landscape lighting in spring or heating units in early fall—peak season endorsements allow higher limits to activate automatically during those windows, then revert afterward so annual premiums stay in check.

Unlike auto liability or workers’ compensation, installation floater insurance is not mandated by state law. However, the Revised Code of Washington grants project owners broad authority to transfer risk through contract language. Public-works contracts issued by the Washington State Department of Enterprise Services often require subcontractors to furnish proof of installation floater coverage on items valued above $10,000.

In addition, the Washington State Insurance Commissioner monitors inland marine filings to ensure that policy wording complies with the state’s liberalization regulations. Contractors that purchase policies from non-admitted carriers must verify that surplus-lines brokers have filed the appropriate affidavits. Failure to do so can jeopardize certificate acceptance and delay progress payments.

Pricing for installation floaters in Washington reflects a blend of the following variables:

Type of Property

Low-value, non-fragile items such as PVC pipe attract rates as low as $0.30 per $100 of value. High-tech medical equipment can exceed $1.20 per $100.

Geographic Exposure

Sites west of the Cascades face higher theft and flood risk, while eastern Washington projects grapple with wildfire. Location modifiers can swing rates by 15-20 percent.

Project Duration

Short-term jobs under six months generally see minimum premiums, whereas multi-year infrastructure installs in places like the Puget Sound Gateway Program may require staged renewals and additional audits.

Loss History and Risk Controls

Contractors who provide evidence of fenced perimeters, 24-hour security cameras and GPS-enabled cargo tracking often qualify for meaningful credits. Conversely, a string of small theft claims can drive deductible requirements upward.

Even the most diligent installer can experience a loss. Following a disciplined claims protocol accelerates payment and keeps the contractor in good standing with both the insurer and the project owner.

Immediate Incident Response

Secure the area, document the damage with photographs or video and notify law enforcement if theft or vandalism is involved. Many Washington insurers require notice within 72 hours of discovery, so prompt action is critical.

Preserve Damaged Property

Do not discard wreckage unless public safety demands it. The adjuster will want to examine items to confirm cause of loss.

Gather Records

Invoices, delivery receipts, labor logs and change orders help substantiate the claimed value. Maintaining organized digital records greatly reduces friction.

Coordinate With the Builders Risk Carrier

Overlapping coverage can occur if materials were partially installed. Clear communication between carriers ensures that each pays its proportionate share and that the contractor avoids coverage disputes.

Selecting an installation floater involves more than comparing premium quotes. Consider the following guidelines:

Review Insurer Financial Strength

Washington’s mega-projects can involve multimillion-dollar claims. Verifying that the carrier holds at least an A- (Excellent) rating from AM Best protects against insolvency risk.

Scrutinize Deductible Language

Some policies apply separate deductibles for theft and wind, or a waiting period for flood. Make sure the deductible structure aligns with the contractor’s risk tolerance and cash-flow realities.

Request Manuscript Endorsements

Larger contractors often negotiate endorsements that waive subrogation against upstream parties or extend coverage territory into Oregon and Idaho for cross-border jobs. Those tweaks can be worth far more than a small rate concession.

Leverage a Construction-Focused Broker

Brokers who handle dozens of Washington inland marine placements each year understand local underwriter appetites and can push for superior terms.

Abstract coverage theories become concrete when paired with actual events. The following scenarios, drawn from publicly reported claims and anonymized loss summaries, illustrate how installation floaters respond:

Wind Damage to Rooftop Units in Tacoma

During a March windstorm, gusts topping 60 mph toppled four HVAC units awaiting crane lift on a hospital renovation. The installation floater covered replacement units, crane rescheduling fees and overtime labor—totaling $312,000. Builders risk picked up minor roof repairs caused by falling debris.

Theft of Copper Wire in Spokane Valley

Thieves cut through a chain-link fence and stole 7,000 feet of copper wire overnight. Security cameras helped police identify the suspects, but the materials were never recovered. The floater paid $48,000, minus a $2,500 deductible, allowing the electrical contractor to stay on schedule.

Fire in Temporary Storage Facility in Bellingham

A propane heater malfunction ignited insulation rolls stored in a rented warehouse. The resulting blaze destroyed $185,000 in ductwork and smoke-damaged adjacent building materials. Thanks to a blanket installation floater that included off-site storage within 100 miles, the contractor avoided a costly setback.

Is installation floater insurance mandatory in Washington?

State law does not dictate purchase, but many public-works contracts and private owner agreements require proof of coverage for items over a specified dollar threshold. Ignoring those stipulations can disqualify bids or delay payments.

Can a general contractor purchase a single floater that covers all subs?

Yes, some GCs negotiate wrap-up installation floaters that blanket all subcontractor interests, simplifying administration. However, subcontractors must verify that limits are high enough and that coverage triggers align with their individual scopes.

Does the policy cover test runs or commissioning?

Most standard forms terminate coverage once the equipment is operational or accepted by the owner, but endorsements are available to extend protection during commissioning. Clarify this point during policy placement.

What is the difference between a per-item limit and a per-occurrence limit?

A per-item limit caps payment on any single piece of property, while a per-occurrence limit caps the total payout arising from one event. High-value equipment may require scheduling higher per-item limits to avoid shortfalls.

Are earthquakes covered?



Western Washington sits in a seismically active zone. Standard installation floaters exclude earthquake, but insurers offer buy-back endorsements. Premiums rise, yet many owners insist on securing the coverage before permitting critical installs like elevators or emergency generators.

Washington’s dynamic construction market shows no signs of slowing. With developers racing to meet housing demands, utilities modernizing their grids and the state investing billions in transportation infrastructure, contractors will continue transporting and installing valuable property every day. Installation floater insurance remains one of the most efficient tools for safeguarding those assets against the unpredictable hazards that lurk between the warehouse and the final walkthrough.

By understanding how these policies function, where their boundaries lie and how to tailor them to each project’s unique profile, Washington contractors can focus less on risk transfer headaches and more on delivering quality work—on budget and on time.