An equipment floater is a movable-property policy that follows covered equipment from place to place instead of limiting coverage to one insured location. It is commonly used for tools, contractor equipment, mobile devices, and other property that regularly leaves the main premises.
Why businesses need it
A standard property policy is often written around listed premises. That works well for buildings and permanently located contents, but it can be too narrow for equipment that is:
- transported between job sites
- stored temporarily off premises
- left in vehicles
- used outdoors or in transit
An equipment floater solves that problem by insuring the property wherever the form allows it to travel, subject to listed exclusions and limits.
How coverage is written
Floaters are often written on a scheduled basis, where specific items and values are listed, or on a blanket basis for classes of smaller equipment. Claims are adjusted according to the valuation terms in the form, deductibles, and the cause of loss.
Coverage is often broad, but not unlimited. Theft, accidental damage, and transit loss may be covered, while wear and tear, unexplained inventory shortage, and mechanical breakdown may be limited or excluded unless separate coverage applies.
Practical example
A contractor carries laser levels, saws, and small generators from project to project. Overnight, several scheduled items are stolen from a locked trailer at a temporary job site. If the policy conditions are satisfied, the equipment floater may pay for the stolen items even though the loss happened away from the insured’s main office.