Freight Forwarder Insurance
Contractors Insurance is a leading and trusted insurance brokerage that specializes in providing custom insurance plans for various contractors, tradespeople, and professionals. We create insurance plans for your business that gives you the coverage you need, without the unnecessary riders. One of our specialties is providing freight forwarder insurance (among other needed coverages) for contractors.
Freight Forwarder Insurance, in the context of contractor insurance, refers to the coverage needed to secure materials and equipment that are in transit – whether they are transported by the insuree or entrusted to a freight forwarding service. In the event that such materials and equipment in transit are damaged, lost, or stolen, freight forwarder insurance for contractors will protect your business from consequential losses.
We have helped hundreds of contractors in getting the freight forwarder insurance that fits their needs, amongst other insurance needs. Here at Contractors Insurance, you can be sure you’re in good hands!
What Is Freight Forwarder Insurance?
It is important to note that “Freight forwarder insurance for contractors” is also known as installation floater insurance. This insurance type covers materials, fixtures, and equipment, that are in transit or are yet to be installed, in the event that they are lost or damaged. A few examples of such items include:
- Plumbing components
- Electrical components
- Kitchen fixtures
- Bathroom fixtures
- HVAC units
- Solar panels
Here are more details regarding this insurance type’s coverage:
Materials, Fixtures, and Equipment While In Transit
Whether you are using your own vehicles or are hiring a freight service/carrier to transport materials, fixtures, and equipment, freight forwarder insurance for contractors covers you in the event that damage is inflicted on the said items or if they are stolen while in transit.
Note: If you are using your own vehicles or trucks to transport such items, it is important to note that installation floater insurance will cover only the materials, fixtures, and equipment but not the vehicle itself.
Materials, Fixtures, and Equipment Awaiting Installation or Being Installed
With installation floater insurance, damage or theft relating to materials, fixtures, and equipment used in the project are covered even while they are not in transit. These items are covered even if they are…
- Awaiting installation on the job site itself
- Awaiting installation but stored in a temporary location
- In the process of being installed
- Have technically been installed but awaiting the acceptance of the client
Who Can Benefit From Contractor’s Freight Forwarder Insurance Coverage?
Freight forwarder insurance for contractors or installation floater insurance will be highly beneficial as part of your risk management strategy if one or more of these applies to your business:
- You transport materials, fixtures, equipment on a regular basis through a freight forwarder, carrier, or using your own vehicles
- Uninstalled materials, fixtures, or equipment are regularly stored on a temporary location or left stocked within the job site (especially if it’s for an extended period)
- The roads going to your job site are bumpy which can cause damage to carried items (especially fragile items)
- You have high-value and/or a large bulk of construction materials, fixtures, or equipment that need to be transported
If you said yes to some or all of the above, you are exposed to risks of damage/theft to your materials/fixtures/equipment and this can lead to consequential loss, project delays, and client dissatisfaction. Installation tool floater can cover the replacement costs, thereby allowing your project to progress without significant disruption.
Through our years of service, we have helped numerous contractors in setting up their freight forwarder insurance (aka installation floater insurance). If you have questions about this insurance type or if you’d like to have it set up for your business, we’re here to help!
Why Is It Important for Ontario Contractors to Have Freight Forwarder Insurance or Installation Floater Insurance?
In most kinds of contractor business or related trades, it is impossible to get anything done without needing to transport materials, fixtures, and equipment to the construction site or job site. Materials may also await installation while in a temporary location or at the job site itself.
These processes open up risks for damage or loss due to accidents, rough road topography, the presence of criminal elements, and so on. Installation floater insurance protects you in such events, saving your business thousands to hundreds of thousands.
Contractor’s Freight Forwarder Insurance Claims Examples
Claims Example #1
You are remodelling a kitchen. The countertops arrived at the house but due to the potholes along the way, they have sustained scratches and nicks.
The client is dissatisfied with the state of the countertops and you need to replace them. Freight forwarder insurance covers the $3000 needed for replacing the countertops.
Claims Example #2
In your temporary storage area, you have 7 HVAC units worth $5000 each that are awaiting installation. One day you find that there has been a break-in and the HVAC units are gone.
Your freight forwarder insurance will cover the replacement cost of $35,000.
Claims Example #3
One of your trucks, carrying 9 casement windows and 2 bay windows for a renovation project, gets involved in a road accident, damaging all the window parts inside.
Your freight forwarder insurance will cover the total replacement cost of the windows of $15,000. However, note that coverage for the vehicle itself as well as related bodily injury requires additional coverage.
Leading Provider of Contractor’s Freight Forwarder Insurance in Ontario
We are a trusted provider of contractor’s freight forwarder insurance because of our distinct customer-centric approach. In order to provide the best possible experience to our clients, we make sure to offer these benefits:
Customizable Insurance Plans
You get to pay only for the coverage that your business really needs. We can help you set up freight forwarder insurance, along with other additional coverage that you need or prefer, without the unnecessary costly riders.
Transparency on Coverages and Limitations
We make it a point to be transparent about all aspects of your insurance plan – including how it works, what the triggers are, what’s covered and what isn’t, and so on. After you get a clear understanding of your personalized insurance plan, we can also make any adjustments that you may require or desire.
Comprehensive Insurance Education
We view each of our clients as our partners. Hence, we make it a point that you know everything you need. We don’t use complicated confusing jargon, we say it like it is; this way, we are able to effectively empower our clients with the needed knowledge, so that they can make informed decisions about optimizations to their insurance plan.
Frequently Asked Questions About Freight Forwarder Insurance
The cost of installation floater insurance depends on the risks related to the industry, the value of the property, your history of past claims (if any), and etc. However, the average cost would be around $62 per month to cover $100,000 worth of materials/fixtures/equipment.
The main difference between these two insurance types is that the builder’s risk insurance covers the building under construction as well as temporary structures used for its construction.
However, both builder’s risk insurance and installation floater insurance can cover uninstalled materials, fixtures, and equipment, including those in transit. Because of this overlap, it is important to work with a trusted insurance expert, such as the ones here at Contractors Insurance, in order to determine which insurance type will serve you best.
And should you be needing both insurance types, a Contractors Insurance expert will be able to bundle the insurance plans so that they are cost-effective and beneficial for your business.
Freight forwarder insurance for contractors or installation floater insurance is not required by Ontario law. Contractor businesses who opt for this insurance do so for the broad and beneficial protection it gives – as well as to give more assurance to their clients.
Ready to Get the Coverage You Need?
Contractor’s Insurance is a trusted and award-winning insurance brokerage based in Toronto. Our main focus is to provide contractors, tradespeople, and professionals with the personalized insurance plan that they need so that they are ready for anything.
Through the years, we have served numerous contractor businesses from various industries and we’re looking forward to serving more! You can count on our dedicated service and customer-centric approach as we help bring your business to a more secure and successful future.