For companies looking to completely protect all of their property, whether it’s a palette of inventory being trucked to a warehouse or a set of specialized construction equipment that’s moved from job site to job site, it’s critical to consider Inland Marine Insurance.

What is Inland Marine Insurance?

Inland Marine Insurance is a form of property insurance that covers goods, tools, equipment, and other property that are not tied to a fixed location and are not covered by a standard commercial property policy. Despite the name, Inland Marine Insurance doesn’t have anything to do with insuring boats stored on land.

Inland Marine Insurance provides coverage for a variety of property, including merchandise you ship by truck to a customer, equipment used by contractors for construction projects, musical instruments, photography equipment, fine art, and more. Inland Marine Insurance provides broad coverage for property that helps fill the gap in coverage left by standard commercial property policies.

Example:

• Your logistics company is transporting pharmaceutical products via a refrigerated truck from the manufacturer to one of your storage facilities. During transport, the refrigeration malfunctions, causing the pharmaceuticals to be exposed to extreme heat and voiding the product. Your Inland Marine Insurance would cover the damages.

Why is it called Inland Marine Insurance?

Despite its name, Inland Marine Insurance doesn’t have anything to do with marine equipment. The name is an artifact from a time when ocean shipping was the primary means of transportation for goods. Shippers needed a way to insure their goods against loss or damage as it crossed the ocean, so ocean marine insurance was created. Over time, railroads and highways allowed goods to be shipped more cheaply over land, and the insurance companies offering ocean marine insurance began to insure these goods as they traveled on trucks, trains, and river barges. This new coverage was called Inland Marine Insurance.

Inland Marine Insurance grew to cover all sorts of products, merchandise, equipment, and other property that moves around to different places and is not covered under standard commercial property policies. Although times have changed, insurance companies still retained the historical name “Inland Marine Insurance.”

What does Inland Marine Insurance cover?

Inland Marine Insurance protects your property regardless of where it is located. While many businesses may believe that commercial property insurance will cover all of your property, in reality, may commercial property policies exclude a variety of property that isn’t specifically fixed in place at your business premises or have limited coverage for damage or loss that occurs when it is not on your business premises.

Your existing business owner’s policy or commercial package 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 nearby job site may be covered if they are valued under a certain amount. However, if you have high-value equipment or goods that are being shipped or that move around, you may need Inland Marine Insurance.

Some types of property that can be covered by Inland Marine Insurance include:

• Property that is being moved or transported. This might include a shipment of merchandise or a photographer’s specialized equipment.
• Property you’re holding for someone else. A computer repair store might need Inland Marine Insurance to cover their customers’ computers while they are being repaired.
• Property installed in a vehicle. The video broadcasting equipment installed in a news van can be covered by Inland Marine Insurance, as it may not be covered under commercial auto insurance. However, the van itself would only be covered by commercial auto insurance.
• Property that moves from place to place. This may include construction equipment that is used at different construction sites.
• Fixed property that can be used for transportation or communication. This property includes bridges, piers, pipelines, transmission lines, and radio towers.

What risks are covered by Inland Marine Insurance?

Inland Marine Insurance is offered on either an all risks basis or a named perils basis. All risks policies cover any cause of loss other than those that are specifically excluded by the policy. Named perils policies only cover those risks specifically named in the policy.

Commonly covered named perils include:

• Fire or lightning
• Explosion
• Theft or vandalism
• Damage from vehicles or airplanes (excluding those owned by the business)
• Water damage, sprinkler leakage, or burst pipes (but water damage from flood is excluded)
• Windstorm or hail
• Smoke from accidental fire
• Riots or civil commotion
• Sinkhole collapse or building collapse

However, every insurance contract covers different perils, so it is important to read your contract and discuss with your agent or insurance company.

All risks policies are usually more expensive than named perils policies, but they provide greater protection for your property. Usually, Inland Marine Insurance all risks coverage has fewer exclusions compared with a standard all risks or open perils commercial property coverage.

Types of Inland Marine Coverages

Inland Marine Insurance takes on a variety of forms and may be specialized to the needs of specific professions, industries, or use cases. Below are a few of the most common types of Inland Marine coverages.

Shipping and Transit

For a manufacturer, wholesaler, or retailer, Inland Marine Insurance can provide financial protection for your goods while they are in transit to a customer or between your distribution center and your retail outlet. Inland Marine Insurance is appropriate for covering any type of high-value merchandise that is being shipped.

Additionally, two other coverage options for shipping are the installation floater and motor truck cargo coverage.

The installation floater covers materials and products from the moment they are loaded on a truck up until they are installed for use. This coverage can be useful for items such as:

• Communication and networking equipment
• Medical and scientific equipment
• Construction materials
• Solar panels and wind turbines

The motor truck cargo coverage can protect a trucker carrying goods or property for a client. This coverage will insure the client’s property while in the possession of the trucker. Note that motor truck cargo only covers the actual cargo. It does not protect the truck itself. To protect the truck, commercial auto insurance is required.

Bailee’s Customer Coverage

Bailee’s customer coverage protects property that is temporarily in your possession for the benefit of a client. For a variety of businesses, taking in customer property is an essential part of business. If that property is damaged, you may be held liable. Although general liability insurance can protect your business in cases where you damage third-party property, it specifically excludes property that is under your care, custody, or control. Bailee’s customer insurance can fill the gap to provide the needed coverage.

A variety of businesses may find bailee’s customer coverage useful, including:

• Businesses that offer valet service
• Computer maintenance or repair services
• Curtain or rug cleaners
• Dry cleaners
• Event planners
• Furniture repair stores
• Jewelers and pawn shops
• Storage facilities
• Tailors
• Veterinarians and pet hotels
• Warehouses
• Watch and lock repair

Movable Equipment or Property

Inland Marine Insurance can protect property or equipment that regularly moves around or that is normally used on client job sites. This property is protected wherever it is located, whether it is stored on your business property, in transit, in storage, or on a job site. Examples of property that can be covered include:

• Catering equipment
• Cleaning equipment such as a power floor cleaner
• Computer equipment including servers and laptops
• Contractor’s equipment such as bulldozers and other mobile tools
• Cooking equipment stored in food trucks
• Musical instruments
• Pet grooming equipment
• Photography, cameras, and movie equipment
• Salesperson’s samples
• Trade show booths
• Tradesperson’s or repair person’s tools and equipment
• Vending machines

Builder’s Risk Insurance

For construction industry businesses, Inland Marine Insurance also offers builder’s risk coverage, which provides coverage for buildings in progress before they are completed. This coverage can include protection for materials stored at a building site while construction is in progress, as well as partially completed and temporary structures.

Fine Arts

Inland Marine Insurance can also financially protect artworks when they are on exhibit, in transit, or on loan.

Instruments of Transportation or Communication

Some fixed infrastructure is also covered under Inland Marine Insurance when it is an instrument of transportation or communication. This includes:

• Billboards
• Pipelines
• Cellular towers
• Radio broadcasting towers
• Bridges
• Roads
• Piers

How much does an Inland Marine Insurance Policy cost?

The cost of Inland Marine Insurance is dependent upon the value of the property being covered. The average cost of Inland Marine Insurance is $736 per year to cover $100,000 worth of property, with a $1,000 deductible. This is a cost of $0.736 per $100 of property covered. Many Inland Marine policies also have minimum premiums of $100 or $250.

Note that the cost of coverage varies widely depending upon the business and use of the property. For example, a builder’s risk policy may have premiums as low as $0.22 per $100, while a contractor’s small tools policy may charge premiums as high as $3.00 per $100.

Pricing is heavily dependent upon a number of factors, including:

• Value of property. The higher the value of the property that you need coverage for, the higher your premium will be.
• Coverage limits. Depending on the type of property you have, you may need higher limits of coverage. The more coverage you purchase, the higher your premium will be.
• Type of coverage. There are a number of types of Inland Marine coverage, and the total cost to your business will depend on which types and how many types of coverage you purchase.
• Business type. The type of business you run will dictate what types of coverage and how much coverage you’ll need.
• State or federal requirements. Some businesses may be required to purchase certain types of Inland Marine coverage. For example, household goods transportation companies are required to purchase motor truck cargo coverage.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company, broker, or agent. Below we’ve highlighted a few of our trusted partners who offer Inland Marine Insurance:

Provider	Inland Marine Insurance	Commercial Property	Business Owner's Policy
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Thimble	??	??	??

Final Word

Businesses looking to protect and insure their property commonly look to commercial property insurance to provide coverage. However, standard commercial property policies typically exclude coverage for property that isn’t housed at your business premises. This gap in coverage can be addressed through Inland Marine Insurance, which protects a wide range of property, including goods or inventory in transit, equipment or tools that are moved to job sites, or even artwork on display at an exhibition. If your business owns high-value property that may be housed or transported away from your business premises, consider investing in Inland Marine Insurance to provide protection against damage or loss.