Installation Insurance

What is installation insurance?

Installation insurance is a type of inland-marine coverage that is typically purchased by construction subcontractors like HVAC installers, elevator contractors, plumbers and electricians to help protect personal property while work is in progress.
 
Different from a Builders Risk policy that may help cover an entire building project, installation insurance coverage is specific to the covered installation. It covers modifications to an existing building or building under construction. Installation coverage from The Hartford covers personal property installed, fabricated or erected by a contractor including installation related equipment, materials, labor costs and temporary structures such as scaffolding and construction signs. Our installation coverage form can even help protect company profits.
Installation insurance coverage from The Hartford can help protect contractor’s profits. If a covered loss prevents a construction  business from completing a project or meeting a deadline and profits are lost, under The Hartford’s installation coverage form, the contractor can be reimbursed for the pro rata percentage of profit earned prior to the loss, based on the profit assumptions originally built into the job estimate.
 
The Hartford’s installation insurance coverage goes beyond other policies by helping to protect valuable papers and documents as well as borrowed and rented property and equipment. In addition, our installation insurance also provides coverage for lost or damaged tools, as well as expenses such as fees for architects and engineers or interest on construction loans taken due to a covered loss. Installation insurance coverage from The Hartford includes testing coverage for damages caused during the testing of a newly installed system.
 
The Hartford’s installation coverage provides up to $100,000 for the following temporary structures:
 
  • Cribbing
  • Falsework
  • Scaffolding
  • Construction forms
  • Fences
  • Signs
Our installation coverage also provides up to $10,000 to re-erect undamaged portions of this property.
 
Owned or leased tools that are at the job site are covered for up to $500 per item, with a maximum coverage of $2,500 per year while protected by our installation coverage form. High-value installation tools, such as cement mixers, rotary drills, and excavators can be covered by a separate contractor’s equipment policy.
 
Valable papers such as blueprints, schematics and other paper and electronic document are protected under The Hartford's installation coverage policy. The Hartford automatically pays up to $25,000 for research, restoration or replacement of valuable papers and documents that are damaged or destroyed in a covered accident.
 
It's important for contractor and construction businesses to test equipment before operating. Yet it is possible for the equipment and the structure and property on which it is operating to be damaged during testing. The Hartford’s installation insurance policy provides coverage for losses that arise from the testing of pneumatic and hydrostatic equipment.
An installation insurance policy will help cover the cost of debris removal and pollution cleanup required after a covered loss. The Hartford can cover up to the first $100,000 in full, or 25% of the amount payable for the direct physical loss for debris removal. Construction and contracting businesses also have 180 days to report the loss under their installation coverage policy.
 
It’s important for construction and contracting businesses to be able to safely cleanup pollutants after a covered accident. The Hartford’s installation insurance policy covers any court-ordered cleanup expenses for up to $10,000 on a single occurrence or $25,000 for a policy period.
 
A covered loss can slow down production on an installation project. With an installation insurance policy from The Hartford, businesses can receive extra expense coverage to help pay for temporary lodgings, meals and transportation for workers and additional staffing needed to complete the project. The Hartford’s installation coverage policy provides up to $100 a day for each additional worker with a maximum of $5,000 for any single occurrence.
 
Construction contracting businesses are often challenged by fluctuations in costs for equipment and labor. The Hartford’s installation insurance policy provides coverage to help businesses manage escalating costs while on a project. Our installation insurance coverage form provides an additional 5% of the business’s limit of insurance for unanticipated increases in costs and up to $100,000 or more in the event of a total loss.
 
Installation insurance can also cover soft costs resulting from a covered loss, including:
 
  • Additional interest on construction loans
  • Additional engineer and architect fees
  • Additional taxes incurred as a result of a delay in completion of an installation project
  • Coverage is available for individual installation sites
An installation insurance policy from The Hartford can help protect property that is in transit as well as property and equipment contractors and construction businesses borrow. If a contractor or construction business needs to move equipment from an installation site in order to prevent damage from a covered loss there, The Hartford’s installation insurance policy will help protect that equipment while it is being transported and stored at another location. Business property is protected for up to 30 consecutive days from the time the equipment is moved.
 
Most installation insurance policies will cover the property that a business owns. The Hartford’s installation coverage extends protection to include property that a business is responsible for, such as borrowed or leased equipment. This property can be on-site, in temporary storage or even in transit and The Hartford's installation insurance covers it.
The Hartford has been insuring businesses for over 200 years. We offer a broad variety of installation insurance coverages with pricing options designed to fit construction contracting businesses of all sizes. Whether a business is installing new roofing, air-conditioning and heating, or even electrical wiring, contractors can be confident with their installation insurance coverage from The Hartford.
 
We offer 24/7 round-the-clock customer care from our marine insurance experts who specialize in handling installation coverage claims for construction contracting businesses. We also offer risk management education and tools to help businesses find ways to reduce risks and increase the safety of their operations.
 
Ask your agent today how installation insurance coverage from The Hartford can help better protect your business.

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