ROOFING
BUILDER'S RISK
& INSTALLATION
FLOATER
New construction roofing. Large commercial reroofs. Materials on site before installation. If your materials are damaged or stolen before they go on, who pays? This coverage does.
THE COVERAGE GAP MOST ROOFERS MISS
On a new construction project or a large commercial reroof, you may have $50,000-$200,000 in roofing materials sitting on a job site before they are installed. TPO membrane rolls, metal roofing panels, structural insulated panels, synthetic underlayment by the pallet — this is real money.
General liability does not cover your own materials. Your tools and equipment policy may cover equipment but not installation materials. If there is no builders risk policy on the project, or if that policy excludes your scope of work, you have a gap.
An installation floater closes that gap. It follows the materials through their journey: from your supplier, in transit to the job site, on the ground at the site, and until they are permanently installed and accepted. Once installed, they become part of the structure and are covered under the building's property insurance — but until that moment, the installation floater is what protects them.
Common scenarios where this matters:
- Metal roofing panels delivered to site stolen overnight
- Rolls of TPO membrane damaged by vandalism over a weekend
- Skylights damaged by windstorm before installation
- Materials destroyed when job site catches fire
- Truck accident destroys $30,000 in roofing materials in transit
WHAT IS COVERED
WHEN YOU NEED AN INSTALLATION FLOATER
BUILDER'S RISK FAQ
WHAT IS THE DIFFERENCE BETWEEN BUILDER'S RISK AND AN INSTALLATION FLOATER?
Builder's risk covers an entire construction project — typically obtained by the GC or property owner. An installation floater is obtained by the subcontractor (like a roofer) and covers materials they are responsible for installing until they are permanently installed and accepted. Roofers typically need an installation floater, not builder's risk (though on some projects you may need both).
WHO IS RESPONSIBLE FOR OBTAINING BUILDERS RISK — ME OR THE GC?
It depends on the contract. On projects where a GC is running the job, they typically obtain builder's risk covering the entire structure. But not always. Read your contract carefully. If the contract places responsibility on you for materials until installed, you need coverage. If it is silent, clarify before you start.
WHAT HAPPENS IF MATERIALS ARE DAMAGED IN TRANSIT TO THE JOB SITE?
In-transit coverage is a key part of a roofing installation floater. If your delivery of roofing membrane is damaged in a truck accident on the way to the site, the installation floater covers replacement. Without it, that is out-of-pocket or a fight with the delivery company.
DO I NEED BUILDERS RISK FOR A RESIDENTIAL REROOF?
Typically no — residential reroofs are covered under a standard GL policy for property damage, and materials on site briefly before installation are lower-risk. Builders risk and installation floaters are more critical for new construction, large commercial projects, or projects where materials sit on-site for extended periods.
WHAT CAUSES OF LOSS ARE COVERED?
Most installation floaters are written on a broad form that covers fire, theft, vandalism, wind, hail, lightning, and accidental physical damage. Flood and earthquake are typically excluded unless specifically added. Make sure you know what is covered for the climate and job site.
HOW IS THE PREMIUM CALCULATED FOR A ROOFING INSTALLATION FLOATER?
Premium is based on the value of materials and equipment at risk — typically calculated as a percentage (0.5-1.5%) of the total value of materials to be installed. Larger projects, longer durations, and higher-value materials result in higher premiums.
PROTECT YOUR MATERIALS. PROTECT YOUR MARGIN.
Material costs are the largest line item on most roofing jobs. Cover them from the moment they ship until the day they go on.