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. Trade Safe places builders risk coverage for the real risk a project carries while it is under construction, using carriers that understand builder’s risk exposure.
- ✓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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