Builders Risk Answer

What Is the Difference Between Builders Risk and Installation Floater?

Both protect construction property — but they serve different parties in completely different ways. Here’s exactly how they differ and when you need each one.

  • Builders risk: project-specific, covers the whole build
  • Installation floater: contractor-specific, follows materials from warehouse to acceptance
  • Both can coexist on the same project — no duplication
  • Subcontractors need floaters; owners and GCs need builders risk
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The Direct Answer

Builders risk and installation floaters both protect property associated with construction — but they serve different parties, cover different scopes, and operate on completely different terms.

Builders risk: A project-specific policy purchased by the owner or GC. It attaches to a single project and covers the entire structure, all materials on-site, and work in place from groundbreaking through completion. One project, one policy.

Installation floater: A contractor-specific inland marine policy purchased by a subcontractor. It covers their specific materials and equipment from the time they leave the contractor’s warehouse through delivery, on-site storage, installation, and acceptance. It follows the contractor across multiple projects — not tied to one job.

Feature Builders Risk Installation Floater
Who buys it Owner or GC Subcontractor
Scope Entire project Specific contractor’s materials
Coverage start Groundbreaking Materials leave warehouse
Project-specific Yes No — follows contractor

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