Despite its name, inland marine insurance does not refer to the ocean or waterways. Rather, it covers losses for damage to a business’ products, materials and equipment while being transported over land (e.g., via van, truck, or train). Inland marine insurance may also cover losses that arise from damage to products, materials and equipment warehoused by a third party or stored at a location other than the business’ primary facility. Inland marine insurance is essential in helping a business protect its bottom line from incidents involving the transportation or storage of valuable goods and business property. As a result, a business must understand this type of insurance, what it covers and the key policy forms.
Inland Marine Insurance Explained
Inland marine insurance protects against financial loss from damage to a business’ products, materials, and equipment during transportation and storage. Specifically, inland marine insurance covers damages incurred while business property is transported over land, inside a commercial vehicle, or while such property is in the temporary care of another, such as stored at a customer’s premises or some other fixed location. Inland marine insurance is particularly important for a business that ships expensive products and materials, moves key assets between locations, or travels with essential equipment to conduct work projects and assignments off-site. Examples of such business property that may be covered by inland marine insurance include the following:
- Computers, servers, laptops, electronics and other communication and networking tools
- Construction and contracting equipment
- Medical and scientific devices
- Fine art pieces and collectible items
- Trade show exhibits and sales samples
- Professional cameras, lenses, tripods, and other photography equipment
- Additional cargo and items for delivery
Inland marine insurance generally covers damage caused by a covered peril, such as collisions, fire, theft, wind, hail and water-related incidents, and will help pay for the repair or replacement of the damaged property. Some policies may also cover damages caused by unknown perils, such as the mysterious disappearance of an item or the accidental drop and damage of property during the transportation process.
Types of Inland Marine Insurance
Although specific coverage offerings may vary between insurers, here are some common types of inland marine policies:
- Motor truck cargo coverage—This coverage offers financial protection from damage to goods and other business property while being transported in a business’ commercial vehicles. For example, it can help pay for the repair or replacement property damaged if your truck is in an accident.
- Builder’s risk coverage—Also known as course of construction insurance, builder’s risk covers losses to equipment and materials used during a construction project. It can also cover any structures under construction. This type of coverage is mainly for construction companies and typically lasts for the duration of a project, starting when materials arrive at the job site and concluding when work is completed.
- Bailee coverage—This coverage will reimburse you for losses to third party’s property while the property is temporarily in your care. For example, if a fire damages a customer’s dress shirts while they are being stored at a dry-cleaning facility, bailee coverage could pay for the cost of replacing this clothing.
- Contractor’s tools and equipment coverage—Sometimes referred to as equipment floater insurance, this coverage will help pay for the repair or replacement of equipment and tools while moving to and from different job sites. Such coverage is primarily for construction, maintenance and repair professionals and applies to a variety of items, including bulldozers, forklifts, mowers, and portable tools.
- Exhibition and fine art coverage—This coverage can help pay for losses to an organization’s high-value items, such as works of art, while they are in transit, on loan or on display in an exhibit. For instance, if a painting owned by a fine art dealer gets stolen while being transported to a new exhibit, this coverage could reimburse the associated replacement expenses.
- Installation floater coverage—This coverage will reimburse losses from damage to materials that a business plans on installing at a job site, both during transportation and in storage. For example, if a hailstorm damages a pipe being stored in a plumbing company’s warehouse before the organization can install it at a customer’s residence, installation floater coverage may help pay for the cost of replacing the pipe.
Conclusion
Inland marine insurance can make all the difference in helping a business minimize the financial fallout from damage to the business’ products, materials and equipment during transportation or storage.
Contact us today at RMC Group to review the different types of inland marine insurance coverages available and to tailor your coverage to your business needs for more insurance solutions at 239-298-8210 or rmc@rmcgp.com to review the different types of inland marine insurance coverages available and to tailor your coverage to your business needs.