What is an Equipment Floater Policy designed to cover?

An Equipment Floater Policy is specifically designed to provide coverage for direct physical loss or damage to equipment, whether it is located at job sites or in transit. This type of policy is essential for contractors and businesses that rely on specialized equipment, as it protects against risks such as theft, vandalism, accidental damage, and other unforeseen incidents that could impair the use of that equipment.

The focus of an Equipment Floater is on tangible equipment, ensuring that contractors can recover the value of their tools and machinery if they are damaged or lost. This protection is particularly important in the construction industry, where equipment can be expensive and crucial for completing projects on time.

While liability for employees operating equipment, loss of income from damaged equipment, and general liability for construction accidents are important considerations in the broader scope of risk management, they fall outside the specific coverage provided by an Equipment Floater Policy. This policy does not address liability issues or income losses; instead, it centers on safeguarding the physical assets that contractors need to maintain their operations effectively.