Their claim was processed, and they avoided a huge financial hit. Since then, they’ve become firm believers in the value of this coverage and now advise all their subcontractors to carry it as well.
I’ve had multiple inland marine and property success stories, but one of the most common and costly mistakes I see among contractors is the lack of an installation floater. An installation floater is a crucial insurance policy for contractors, covering materials, equipment, and supplies while they are being transported, stored, or installed at a job site. Without it, the financial risks can be devastating.
Many contractors assume that their inland marine policy is enough, but inland marine and installation floater coverages are different. While inland marine insurance broadly protects movable property in transit or stored off-site, an installation floater specifically protects materials during installation, guarding against risks like theft, weather damage, or accidental loss.
One of my biggest success stories was persuading a contractor client to keep their installation floater. They had a $1 million coverage limit due to a large project, but they wanted to drop the floater because they stored all their materials in locked, secured bins. I strongly advised against it, warning them that no location is fully secure—especially in high-risk areas like Los Angeles.
Later that same year, their job site on Figueroa Street was hit by thieves. The entire site was emptied at 4 a.m., with everything stolen, from materials to equipment. This was clearly an inside job—the thieves knew where the security cameras were and disabled them before breaking the locks. The supply house delivering materials that morning was the first to discover the theft and alerted the general contractor.
To make matters worse, the police were delayed due to multiple reports of similar thefts along the same street that morning, and it wasn’t until late afternoon that they arrived. The detective advised everyone to file claims with their insurance companies as several other nearby projects had also been hit.
Although my client was frustrated about having to reorder $250,000 worth of materials, they were incredibly relieved to have maintained their installation floater. Their claim was processed, and they avoided a huge financial hit. Since then, they’ve become firm believers in the value of this coverage and now advise all their subcontractors to carry it as well.
This experience highlights the importance of proper insurance coverage for contractors. Without that installation floater, my client would have faced a major financial loss. My expertise and advice ensured they were protected, reinforcing the critical role of claims management and the right insurance policies for high-risk projects.
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