What is a floater in inland marine insurance?

Complete Guide to Floaters in Inland Marine Insurance

Why This Question Matters for Colorado and Utah Residents

Floaters protect the tools, equipment, or valuables your business relies on—especially those frequently transported across towns, job sites, or even state lines. Regional risks, like Colorado’s hailstorms or Utah’s rugged terrain, make it crucial to truly understand what a floater covers and when it’s needed.

• Hail and severe weather are major threats: In Northern Colorado, 68% of inland marine claims are weather-related, with hail and flooding causing over $3.4 million in damages in a single 2024 event. Floaters can be tailored to cover these perils specifically.
• High-value mobile assets are common: Local businesses—photographers, contractors, tech startups, and agricultural producers—regularly transport tools and equipment worth thousands. Floaters keep these assets protected from theft, damage, or loss while in transit or offsite.
• Many policies have gaps: Only 35% of small-to-midsize businesses in places like Larimer County carry inland marine coverage, despite 82% transporting mobile property. Floaters address the real risk of underinsurance and business interruption.

What Most People Get Wrong

Many business owners believe their property or business owner’s policy automatically covers equipment wherever it goes. In reality, standard policies often only protect assets located at a specific address. When items travel, especially valuable tools, cameras, or electronics, coverage disappears unless a floater is added.

Another common misconception is that floaters are “extra” or only for high-risk situations. In Colorado and Utah, where mobile work is the norm—from trade shows in Denver to photo shoots in Park City—a floater is often fundamental, not optional.

The Complete Picture

A floater in inland marine insurance is a flexible coverage extension for movable property. Whether you’re a wedding photographer shuttling cameras to venues across Fort Collins, a contractor moving tools between sites along I-25, or a tech company delivering prototypes to Salt Lake City, a floater ensures your gear is covered off-premises and in transit. Most floaters are customizable, allowing you to specify which items are protected and for how much, even including perils like hail, theft, or accidental damage. When storms are fierce, theft is a risk, or deadlines matter, a floater bridges the gap—covering the costs of repair, replacement, and sometimes even lost income due to equipment downtime. Regional stats back this up: average inland marine claims reach $28,000, and business interruption can cost $18,000 per day. A well-structured floater can be the difference between a minor setback and a major financial hardship.

Making the Right Decision for Colorado and Utah Residents

Question 1: Does my property leave my main business location?

Consider how often and how far your valuable items travel:

• Do you regularly take tools to different job sites around Colorado or Utah?
• Do you transport sensitive electronics to conferences or clients?

If the answer is yes—even occasionally—a floater could be essential to prevent costly gaps in protection.

Question 2: What specific regional risks do I face?

Think about the real exposures in your area:

• Are you in a hail-prone zone (e.g., Fort Collins, Greeley, Salt Lake City suburbs) where damage is likely?
• Is theft or transit damage a recurring concern for your industry?
• For agriculture, do you face seasonal flood risks during harvest?

Ask your agent for endorsements that directly address these dangers with a floater.

Question 3: How much would downtime truly cost my business?

Evaluate all costs—repair, lost work, and extra expenses. Consider floaters with business interruption coverage or rental reimbursement if equipment is out of service. Being honest about the financial impact will guide you to the right limits and optional add-ons so you can recover quickly from setbacks.