Our agency is able to find policies that package property and liability coverages in one policy specifically to meet the needs of small construction firms.
You may need property insurance to cover the real property your company owns and the personal property used in the business, such as office furnishings and computers. Your biggest personal property loss exposures, however, may involve valuable machinery and equipment that moves around from job to job and is not covered by standard property insurance. Such movable property is insured by contracts insurers call "floaters."
- An installer’s floater covers all kinds of machinery and equipment during transit, installation and testing at the purchaser’s premises. Even building materials may be covered, but the more usual coverage is for equipment or machinery that only contractors install, such as heating or air conditioning. The policy can be written to cover a single job or on a reporting form, meaning that you provide the insurer with information about each new contract you undertake.
- A contractor’s equipment floater insures any type of movable equipment not meant to move on public highways. This includes such things as cranes, cement mixers, engines or power drills.
- A tools and equipment floater covers the insured property, wherever it is used, and may include such items as hand tools, power drills, hoisting machines and power pumps.
- While under construction, a building has an ever-increasing value as more of it is completed. To assure the building is covered relative to its value at the time of a loss, there is a special type of policy, known as Builders Risk Insurance. With this policy, if a tornado destroys the building when it is half finished, the policy (if it is for replacement value) covers one-half of the value the building would have had if completed. If a tornado wipes out the building when it is three-fourths finished, the policy covers three fourths of the completed value. Alternatively, you can report an actual amount for value completed to the insurance company each month. That is the amount of coverage should a loss occur that month.