Inland marine insurance covers good, tools, equipment and other property not fixed to a location and is not covered by standard commercial property insurance. Despite the name, inland marine has nothing to with insuring boats stored on land. So why is it called inland marine?
Hundreds of years ago, ocean shipping was the primary means of transportation of goods. Those who shipped goods needed a way to insure those goods against loss or damage as it crossed the ocean, so ocean marine insurance was developed. These insurers offered “all-risk” policies that covered almost any cause of loss for cargo.
Over time, railroads and highways were formed, allowing goods to be shipped over land. The insurance companies offering ocean marine began to insure these non-ocean transported goods. The new coverage was call inland marine.
Inland marine protects your property regardless of where it’s located. This is in contrast to commercial property insurance, which may have limits for loss or damage to your property that occurs when it isn’t on your business premises.
In some cases, your current business owner’s policy may provide sufficient protection for limited amounts of property that are taken offsite. For example, tools and equipment that travel with an employee to a job site may be covered. However, if you have high-valued equipment or goods that are being shipped or that move around, you may need inland marine.
Some types of property that can be covered by inland marine insurance include:
Property that is being transported.
Property you are holding for someone else.
Property installed in a vehicle.
Property that moves from place to place, such as construction equipment.
Fixed property that can be used for transportation, such as bridges and pipelines.
If you have any business property that falls into any of the above, and you aren’t sure if your moveable goods are properly covered, contact you agent today to see if you need an inland marine policy.
Be aware, be safe!