Builders Risk vs. Installation Floater — When You Need Which
The two coverages compared: who buys what, project policy vs. reporting form, and where soft-costs and delay coverage fit.
Two coverages people confuse
Both cover "stuff during construction," which is why they get mixed up. The distinction is whose property and what stage.
Builders Risk covers the structure under construction itself — the building, plus materials at the site and often in transit. It's about the project.
Installation Floater (a form of inland marine) covers materials and equipment you're installing at a customer location, in transit and until installed and accepted. It's about your installed work product before it becomes part of the structure.
Who buys which
- On a ground-up build or major renovation, someone buys Builders Risk on the structure — often the owner (lender-required), sometimes the GC. Get named as an AI if you're not the buyer.
- If you're an installing trade — HVAC, plumbing, flooring, cabinetry, solar — you want an installation floater for the equipment you haul and install, regardless of who carries Builders Risk.
Project policy vs. reporting form
Builders Risk comes two ways: a project policy for one defined job (best for large one-offs), or an annual reporting form covering all your projects under one policy (best for a GC running many smaller jobs). Soft-costs and delay coverage — lost rents, extra financing — can be added where the deal warrants. Detail on the Builders Risk page.
This article is general information for NJ contractors, not legal or coverage advice. Your actual policy forms, endorsements, exclusions, and conditions control. For specifics, request a quote or call a producer.
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