From new builds and additions to major remodels and system upgrades, construction projects in Massachusetts involve significant investment in materials, labor, and time. During construction, a standard property policy may not fully address the risk to structures, materials, and work in progress.

Builders risk and installation floater policies are designed to help protect certain property during the course of construction or installation. They don’t replace your general liability or property coverage—instead, they focus on the building or materials while work is underway.

Risman Insurance Agencies works with project owners, developers, general contractors, and trade contractors across Massachusetts to help them explore builders risk and installation floater options that fit their projects.

Insurance coverage cannot be added, deleted or changed until confirmed in writing from our office.

What Is Builders Risk Insurance?

Builders risk (sometimes called “course of construction” coverage) is a type of property insurance that may help protect certain aspects of a building while it is being built, renovated, or added onto. Depending on the policy, it may address:

• Buildings or structures under construction
• Materials and supplies used in the project
• Certain temporary structures (scaffolding, fencing, etc.)
• Some soft costs or extra expenses after a covered loss (varies by policy)

Coverage is typically written for a specific project, location, and time period, and is subject to defined limits, deductibles, and exclusions.

What Is an Installation Floater?

An installation floater is similar in concept to builders risk, but it is usually designed for trade contractors who are responsible for furnishing and installing specific materials, equipment, or systems at a jobsite.

Depending on the policy, an installation floater may help with:

• Materials and equipment while stored at your shop or yard
• Property in transit to the jobsite
• Materials and equipment at the jobsite awaiting installation
• Certain damage to covered property before the project is accepted

Installation floaters are commonly used by trades such as electrical contractors, HVAC contractors, plumbers, and others who provide and install significant building components.

What These Coverages May Help Address

Subject to policy terms and conditions, builders risk or installation floater coverage may address loss to covered property caused by:

• Fire or explosion
• Theft or vandalism
• Certain weather-related events
• Other causes of loss specified in the policy

Each policy is different, and there are often important exclusions and limitations—for example, for faulty workmanship or wear and tear. We help you review carrier materials to understand what is and is not covered.

Who Typically Uses Builders Risk or Installation Floaters?

These coverages can be relevant for:

• Project owners and developers
• General contractors
• Homebuilders and remodelers
• Trade contractors (electrical, HVAC, plumbing, mechanical, etc.)
• Commercial property owners making major improvements

In some cases, the owner carries builders risk for the entire project. In other situations, a contractor may carry an installation floater for the part of the work they supply. Contract language usually specifies who is responsible for obtaining coverage.

Coordinating Coverage With Contracts

Construction contracts in Massachusetts often include detailed requirements related to property coverage during construction. You may see provisions that address:

• Who is responsible for purchasing builders risk insurance
• Which parties are to be named as insureds
• Project value, limits, and deductibles
• How change orders or project extensions are handled

We can help you understand the insurance-related portions of contracts (not legal advice) and coordinate builders risk or installation floater coverage to align with those requirements.

Common Questions About Builders Risk & Installation Floaters

“Does my standard property policy cover construction work?”

Standard property policies often have limitations on buildings under construction or major renovation. Builders risk is specifically designed for projects during the construction phase.

“When should builders risk coverage start and end?”

Policies are typically written to begin before materials arrive on site and end at completion, occupancy, or another agreed event. The exact dates and triggers are defined in the policy and should match the project timeline.

“Do I need builders risk and an installation floater?”

It depends on your role. Owners or general contractors may secure builders risk for the whole project, while trade contractors may use installation floaters to cover the portion of materials and work they supply. In some cases, only one is needed.

“How much coverage do I need?”

Limits are often based on the completed value of the project (for builders risk) or the value of materials and labor for the specific scope (for installation floaters). We help you review project values and contract expectations when selecting limits.

Massachusetts Considerations

While we don’t provide legal or tax advice, Massachusetts projects can involve:

• Strict permitting and inspection requirements
• Weather-related risks that affect materials and partially completed structures
• Contract requirements from lenders, owners, or general contractors

Builders risk and installation floater coverage are tools that can help address the property side of these exposures as part of a broader project risk management approach.

Why Construction Clients Choose Risman Insurance Agencies

As an independent agency based in Medford, MA, we can:

• Access multiple carriers offering builders risk and installation floater coverage
• Coordinate these policies with your general liability, auto, and equipment coverage
• Review contracts and highlight insurance-related requirements
• Adjust coverage if project values, timelines, or scopes change

Our goal is to help you keep your projects moving with a clear understanding of how your insurance supports your work.