Equipment floater: coverage for your business equipment and tools
An equipment floater or (insurance) is a type of additional coverage (often referred to as a rider) that can be added to your business property insurance policy. It is also known as contractor's equipment or tools insurance and could be quite useful if your business uses tools or equipment that are mobile or used off-site. This coverage can help protect your tools and equipment from unexpected, covered events like fire, flood, theft, or vandalism among others.
But you might be wondering: why get an equipment floater if you already have a commercial property insurance policy?
While it’s true that a standard commercial property insurance policy covers some of the tools and equipment used for your business, typically this coverage is limited to equipment that remains in a fixed location. It might not cover everything – especially equipment that's frequently moved between locations or used off site. Items like cameras, carpentry tools, generators, or power tools often fall outside the scope of a standard property policy because they aren't permanently kept at one location.
Industries that could benefit from equipment floater coverage
This type of insurance is especially beneficial for professionals in skilled trades like contractors, plumbers, electricians, who regularly use equipment and tools at various locations.
That said, these aren't the only professions that could benefit from this coverage. To better understand the advantages of equipment floater insurance, here are a few real-world examples from different industries.
1. Photographer/videographer
Alan is on his way to meet his clients for a photoshoot. He makes a stop enroute leaving his equipment in the car. When he returns, he finds his car was broken into and his camera was stolen.
Fortunately, he had added an equipment floater to his policy, and his camera was replaced so he didn't have to pay for it himself, and he was able to complete his upcoming gig without disrupting his business.
2. Interior designer
While visiting a client's home, Jane leaves her computer there while she runs to pick up some paint and wallpaper samples from a store. Due to some unfinished electrical wiring, the room catches fire and her laptop is destroyed.
Her equipment floater policy covered her laptop, and it was replaced soon after. This ensured her current job was not impacted.
3. Contractor
John just started a project for a new client. It is a larger job and will require John to be onsite for several weeks, therefore he has left his tools at the job site. When he returns to the site the next day, he finds the site was broken into and his Sawzall is damaged beyond repair.
John’s equipment floater rider kicks in and he’s able to replace his equipment.
What should you do if you need to make an equipment floater claim?
If your equipment has been lost, damaged or stolen it’s important to act quickly. Contact your insurance company as soon as possible after the incident. It’s best to be prepared to provide all necessary information to document your claim.
This could include your policy details, proof of purchase (such as receipts), photographs of the impacted items and any other evidence to support your claim.
While it may not be possible to eliminate the risk of theft or vandalism of your equipment, there are some measures you can take to reduce the chances of it happening.
- Lock your equipment securely. You may use cable locks to tie down power tools to fixtures.
- Install alarm and tracking systems for larger equipment like cement mixers.
- Take photos before, during, and after a job to keep track of your equipment.
- You could also set up portable surveillance cameras.
Running a business takes a lot of effort and time to build and grow it to new heights. Setbacks due to loss or damage of your equipment that disrupt your operations can hinder that growth and cause stress and frustration. Having the right insurance coverage for your business can help provide peace of mind and help you recover from unforeseen challenges and let you focus on continuing to grow your business.
Is your business protected? At TD Insurance, we offer flexible coverage options for business owners. Find your industry or profession on this list or speak to a licenced TD Insurance Advisor today at 1-855-724-2883.
FAQs
Yes, vandalism is usually a covered risk in a standard commercial property insurance policy. Although, it might be a good idea to check with your insurer for the details of what’s covered in your policy.
While this insurance is not required by law, it is often a condition set by lenders/financiers, landlords or contractual agreements. Even when it's not required, this coverage is strongly recommended to protect your business property and equipment from losses due to fire, theft, vandalism or other unexpected damage. Without this coverage, a single incident could result in costly repairs or replacement expenses that many businesses may not be able to absorb.
The content on this page is for general information purposes only and does not constitute legal advice. Any coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.
In the case of conflict between the content on this page and your policy wordings, your policy wordings shall prevail. Please speak to an Advisor or consult your policy wordings for further details.