What Is Equipment Floater Insurance?
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How Equipment Floater Insurance Protects Your Movable Property

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How Equipment Floater Insurance Protects Your Movable Property

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For businesses that rely on portable equipment and tools, protecting these assets from loss or damage is essential. This is where equipment floater insurance comes into play. Whether you’re in construction, manufacturing, or any other industry that involves movable equipment, understanding equipment floater insurance is crucial. Keep reading to learn what equipment floater insurance is, what it covers, and why it’s an important consideration for protecting your mobile assets.

Equipment Floater Insurance Defined

Equipment floater insurance is a specialized form of business insurance designed to cover movable equipment and tools. Unlike standard property insurance, which typically covers fixed assets, equipment floater insurance provides coverage for equipment that’s frequently moved from one location to another.

Coverage & Protection

Equipment floater insurance protects against various risks and perils that can result in damage or loss of equipment. This coverage extends to equipment while it’s in transit, at job sites, in storage, and even when it’s being used. Unlike standard property insurance, which only covers your equipment when it’s at a fixed location, equipment floater insurance follows your property wherever it goes. 

Types of Equipment Covered

Equipment floater insurance can cover a wide range of movable assets, including but not limited to:

  • Construction equipment – Excavators, bulldozers, cranes, loaders, etc.
  • Tools and machinery – Power tools, generators, compressors, saws, etc.
  • Medical and scientific equipment – Imaging devices, laboratory equipment, diagnostic tools, etc.
  • IT equipment – Computers, servers, networking devices, laptops, etc.
  • Entertainment and event equipment – Audiovisual equipment, lighting, sound systems, musical instruments, etc.

The exact coverage and limits of your equipment floater insurance policy will depend on the type and value of your property, the nature and frequency of your transportation, and the risks you face. You can customize your policy to suit your specific needs and budget.

How Equipment Floater Insurance Works

Equipment floater insurance works similarly to other types of insurance. You pay a premium to the insurance company in exchange for coverage for your movable property. If your equipment is damaged or lost due to a covered peril, such as fire, theft, vandalism, collision, or natural disaster, you can file a claim with the insurance company. The insurance company will then reimburse you for the cost of repairing or replacing your equipment, up to the limit of your policy.

Equipment floater insurance policies are usually written on an “all-risk” basis, which means they cover any cause of loss that isn’t specifically excluded in the policy. Some common exclusions are:

  • Wear and tear
  • Mechanical breakdown
  • War and terrorism
  • Nuclear hazard
  • Intentional damage
  • Government seizure

Read your policy carefully to understand what’s covered and what isn’t. You should also review your policy periodically to make sure it reflects the current value and condition of your equipment.

Benefits of Equipment Floater Insurance

Having equipment floater insurance offers several benefits to businesses, such as:

  • Broad coverage – Equipment floater insurance provides coverage against a wide range of risks, ensuring your movable assets are protected in various scenarios.
  • Flexibility and mobility – Since the coverage extends to equipment while it’s in transit or at different locations, it allows businesses to operate efficiently and without worrying about potential losses or damages.
  • Cost savings – Equipment floater insurance can minimize financial losses associated with stolen assets or equipment repairs or replacements. This can significantly impact the bottom line of your business.

Policy Considerations

When considering equipment floater insurance, it’s important to keep a few key factors in mind:

  • Coverage limits – Ensure the coverage limits are adequate to protect the full value of your equipment.
  • Deductibles – Understand the deductible amounts associated with the policy and evaluate their impact on potential claims.
  • Exclusions and limitations – Familiarize yourself with any exclusions or limitations in the policy to ensure you have a clear understanding of what’s covered and what isn’t.
  • Valuation methods – Discuss the valuation methods the insurance company uses to determine the value of equipment in case of a loss.

Assessing Your Insurance Needs

To determine if equipment floater insurance is necessary for your business, assess your equipment’s value, mobility, and exposure to risks. Evaluate the potential financial impact of equipment losses or damages on your operations. 

Keep in mind equipment floater insurance may not cover all potential risks. It’s important to evaluate your overall insurance portfolio and consider additional coverage, such as general liability insurance, commercial property insurance, and business interruption insurance, to ensure comprehensive protection for your business. Consulting with an insurance professional can help you understand your specific needs and identify the right coverage options.

Equipment floater insurance can be a valuable addition to your business insurance portfolio. If you’re a business owner, make sure to protect your moveable equipment by purchasing the right insurance coverage. For affordable, reliable business insurance as well as homeowners, renters, motorcycle, and auto insurance, San Diego residents should call on the trustworthy professionals at Altra Insurance Services. Reach out to us today at (619) 404-6311 to learn how we can satisfy all your insurance needs.

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