What Is Installation Floater Insurance in Canada?

You likely already have a contractor insurance policy, but not all policies automatically include installation floater coverage. You can add it to your policy if it isn’t included.

Why Installation Floater Insurance Matters for Canadian Contractors

Most contractor profit margins range between 10% and 20%. One damaged $8,000 custom order can wipe out the entire profit on a project. Installation floater insurance protects your:

• Job profit
• Cash flow
• Business reputation
• Client relationships
• Ability to stay on schedule

For example, let’s say you’re installing new bathroom vanities, sinks, and faucets for a customer. The client has found what they want at various stores, meaning you must travel and pick up every item at different locations across the city.

Your first stop is the sink manufacturer’s warehouse. You inspect it, and everything looks fine. Along the way from the sink manufacturer to a home improvement retailer, a driver cuts you off, and you slam on the brakes to avoid getting into an accident. But when you arrive at the customer’s home, you notice one of the $2,000 marble sinks has cracked in half.

The customer won’t cover the cost because the damage occurred while it was in transit. And the manufacturer won’t pay for it because there were no signs of any defects before you left the warehouse.

The $2,500 profit you expected to make on this job is gone, and you’ll lose money before installing everything.

For many small contracting businesses, one uninsured loss can mean:

• Paying out of pocket to replace materials
• Delays that damage your professional reputation
• Strained client relationships
• Cash flow disruptions that affect payroll and suppliers

What Is Not Covered by Installation Floater Insurance? (Common Exclusions)

While coverage varies by insurer and province, most installation floater policies exclude:

• Tools, equipment, and machinery that won’t become part of the installation
• Plants, trees, or shrubs
• Temporary structures, including scaffolding, fencing, or cribbing
• Cash
• Property sent via an airplane unless it’s a regularly scheduled flight
• Property sent via a ship unless it’s being transported by a carrier for hire

Always review your policy wording carefully, as exclusions and limits vary by insurer.

Who Needs Installation Floater Insurance?

If you regularly purchase, transport, or store materials before installation, you likely need installation floater insurance. Although it’s not limited to contractors, this coverage is especially important for skilled trades professionals who are:

• General contractors
• Home renovation specialists
• Kitchen and bathroom remodelers
• Electricians
• Plumbers
• HVAC contractors
• Flooring installers
• Cabinet makers
• Deck and fence builders

If the materials you work with are high-value, custom-ordered, or easily stolen, this coverage is critical.

Builders’ Risk vs Installation Floater Insurance in Canada: What’s the Difference?

Builders’ risk insurance, also known as course of construction (COC) insurance, protects the building and the liability during the project’s life. It is typically needed for major renovations, new construction, or adding an addition or second story to a home.

However, builder’s risk insurance does not always include premises liability. It primarily covers physical damage to the structure and materials during construction, not third-party injuries.

Be advised that materials located at the job site are covered with builders’ risk insurance, not those you still need to transport or items that are damaged or stolen before installation.

Here’s a quick comparison:

Builders’ Risk Insurance

• Covers the building under construction
• Applies at the job site
• Typically used for large construction or renovation projects
  

Installation Floater Insurance

• Covers materials before installation
• Applies in transit and temporary storage
• Used by contractors transporting materials

Installation Floater vs. Tools and Equipment Insurance

Many contractors confuse these two coverages, but they protect completely different risks.

While installation floater insurance covers materials for a build that has yet to be installed, tools and equipment insurance covers replacing a contractor’s tools and equipment if they’re stolen, lost, or damaged. 

Also called contractor equipment insurance, this type of coverage protects a broad range of expensive tools and equipment, from hand tools to heavy construction equipment and vehicles.

How Much Installation Floater Coverage Do Contractors Need?

The right coverage limit depends on:

• The total value of materials you transport at one time
• Whether materials are custom or imported
• How much materials and how long materials remain at job sites before installation
• The theft risk in your area
  

Many contractors choose coverage limits that match the highest value shipment they expect to handle on a single project. An insurance broker can help you determine the right amount of coverage.

Frequently Asked Questions About Installation Floater Insurance

Is installation floater insurance required in Canada?

It is not legally required, but many contractors carry it to protect their profit margins and meet contract requirements.

How much does installation floater insurance cost in Canada?

Costs vary based on your trade, project size, and material value. Small contractors often pay significantly less than the cost of replacing one major damaged item.

Is installation floater insurance included in general liability insurance?

No. Many contractor liability policies do not automatically include installation floater coverage, so you may need to add it separately.

Does installation floater insurance cover theft from a job site?

Yes. Many policies cover theft of materials before installation, subject to policy limits and security requirements.

Can installation floater insurance be added to a policy mid-project?

In many cases, yes, but coverage only applies after the policy is active.

Get Affordable Installation Floater Insurance You Need Now

In construction, you plan for everything – except the unexpected. Including installation floater coverage in your contractor insurance policy ensures one accident doesn’t undo months of hard work.

Don’t let one damaged shipment erase your profit on a job. Protecting the materials you use before installation can save a project and give contractors peace of mind if construction materials are lost, stolen, or damaged.

Zensurance can help you get low-cost installation floater coverage quickly. 

Complete our online application for a free quote. 

Our brokers will take the hassle off your hands by shopping our partner network of over 50 insurers to get the protection you need and customize it to suit your budget.

– Updated February 27, 2026.