Despite what its name seems to imply, inland marine insurance has nothing to do with water. Rather, it’s an important type of business coverage that fills in some of the gaps in traditional commercial property insurance.
According to the International Risk Management Institute, inland marine insurance is coverage for commercial property that is movable or frequently transported. It was originally designed to protect goods as they were transported across the ocean (hence its name), but over time, inland marine insurance evolved to cover business assets transported across land—a critical safeguard for equipment that moves frequently, or that needs additional coverage beyond location-based property insurance.
Let’s dive into the nuances of inland marine insurance, how it works, and what it covers, so you can determine whether this type of policy is right for your business.
What does inland marine insurance cover?
In general, inland marine insurance covers business assets that fit one or more of the following categories:
- Movable: Property that moves or is not permanently fixed in a single location (for example, construction equipment that moves from site to site, or business computers that leave the office premises)
- In transit: Property transported over land, by third parties or other means of transportation (for example, most types of cargo)
- Instruments of transportation or communication: Property that is essential to the movement of goods or information (for example, broadcasting towers or signage)
- Held by bailees: Property in temporary custody or control of another party (for instance, items held in a shop for repair)
The various types of inland marine insurance coverages are designated “classes.” Jill Morgan, Assistant Vice President of CL Products for Grange Insurance, says: “The most common inland marine classes include Contractor’s Equipment, which services the construction and contracting industries, and Builder’s Risk, which provides coverage for buildings in the course of construction.” Other examples of typical inland marine insurance classes include Motor Truck Cargo, Musical Instruments, Equipment Sales and Rental, and Mobile Medical Equipment.
According to the Insurance Information Institute, some specialized categories require tailored inland marine policies known as “floaters,” so dubbed because the coverage “floats” with the items as they are moved from place to place. Common inland marine floaters include Mobile Equipment Floaters, Sales Representative Floaters, and Installation Floaters.
Inland marine insurance protects against a wide range of perils, making it extremely beneficial for high-ticket movable items. Common perils covered under inland marine insurance include:
- Theft
- Fire and smoke
- Water damage
- Vandalism
- Wind, lightning, or hail
- Accidental physical damage
- Mysterious disappearance
- Damage in transit
- Damage during installation
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What does inland marine insurance not cover?
Because it is specifically designed for movable assets, inland marine does not protect office buildings or the items that reside there. It also does not cover commercial vehicles, as these would fall under an auto policy, or digital assets, which would be covered under a cyber policy.
Contrary to most types of insurance, many inland marine policies are considered “all-risk,” meaning they cover any peril except those specifically excluded by the policy. Such exclusions often include:
- War or nuclear disaster
- Government seizure
- Vermin or pest infestations
- Flooding
- Normal wear and tear
- Pre-existing damage
- Employee dishonesty or fraud
Be sure to discuss exclusions with your agent before you finalize your inland marine policy, so you can be confident you have sufficient coverage for your assets.
How much does inland marine insurance cost?
Costs for inland marine policies vary widely and depend on a number of factors, such as the type of property, its value, and the transportation frequency and distance. Your business’s claims history may also play a role, along with environmental factors.
To get an accurate picture of what your inland marine policy may cost, reach out to an independent insurance agent. They can help tailor the policy to your industry and needs and ensure you get the right coverage type and amount.
Before you reach out for a quote, be sure to have:
- The name and contact info for your business
- Loss history
- Information for your current commercial property policy
- Make, model, and serial numbers for the items you need coverage for
- Equipment storage information
- Geographical area where equipment is used
You may need additional information depending on the types of assets you’re quoting, but these basics should be enough to get you started.
Get the protection you need for your business. Contact an independent agent today to get a quote or discuss tailored coverage options.
References
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Insurance Information Institute (III)
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International Risk Management Institute (IRMI)
Coverages described herein may not be available in all states. Please contact a local independent Integrity agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Integrity Insurance policies are underwritten by Integrity Insurance Company, an affiliate of Grange Insurance Company, and Integrity’s subsidiaries. Integrity companies not licensed in Pennsylvania. Not all Integrity companies are licensed in all states.