Contractors and builders often find themselves confused between two similar-sounding insurance coverages: inland marine and installation floater. Understanding the difference is important to make sure tools, equipment, and materials are properly protected throughout a job.
Inland marine insurance covers items that move over land, like tools and equipment used on different job sites. Despite its name, inland marine has nothing to do with boats. It actually grew from ocean marine insurance and now protects property that’s not fixed in one place. For example, a landscaping company transporting mowers and tools between locations would rely on inland marine coverage to keep those items safe while on the move.
On the other hand, an installation floater protects materials and equipment that are at a job site waiting to be installed. This coverage is tied to a specific project and doesn’t follow the property from site to site. So if a contractor is setting up an HVAC system in a new building, the parts waiting on-site would be covered by an installation floater until they are installed and become part of the building.
Knowing which coverage to use matters because it helps avoid paying for unnecessary insurance or leaving gaps in protection. For instance, copper piping on a construction site should be covered by an installation floater, while the plumber’s cutting tools used on every job need inland marine coverage. Using both coverages for the same item is usually not necessary.
Many people mistakenly think that standard commercial property insurance covers tools and materials everywhere, but that’s not the case. Also, the name inland marine often leads to the wrong assumption that it’s related to boats, when it actually covers land transportation and movable property.
Insurance expert Thomas McMillan from Central Insurance advises contractors to regularly review their coverage with their agents. Inland marine insurance can differ a lot between providers, and policy details, especially exclusions, need careful checking. This is even more important as construction methods change, such as with the rise of modular construction, where materials might be built off-site and need specific coverage.
Central Insurance stands out by offering strong inland marine and builder’s risk products tailored to the construction industry. Their team works closely with agents and clients to ensure the right coverage is in place. With over 150 years of experience, they understand the fast pace and risks contractors face and provide support that goes beyond just insurance policies.
For contractors, talking with a knowledgeable local insurance agent can make a big difference in protecting tools, materials, and equipment before, during, and after a job. Getting the right coverage helps avoid surprises and keeps the work moving smoothly.