Understanding Commercial Inland Insurance Exclusions

Inland marine insurance is a type of property insurance that covers materials and equipment while they are in transit or stored away from a business's primary location. It is designed for businesses that frequently transport or ship goods, equipment, or property, and it covers losses due to transportation risks such as fire, theft, collision, and natural disasters. However, it is important to note that inland marine insurance does not cover stationary equipment or property kept at a business's main location. Therefore, businesses that rarely move property or equipment may not require inland marine insurance and may be adequately covered by standard commercial property insurance. Motor vehicles designed for use on highways are also not eligible for coverage under inland marine insurance.

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Motor vehicles designed for highways

Motor vehicles designed for use on highways are not eligible for coverage under the Equipment Dealers Form of inland marine insurance. This is because inland marine insurance generally covers goods and equipment in transit or stored away from the primary business location, rather than the vehicles themselves.

Inland marine insurance is a type of property insurance that covers materials and equipment while they are being transported over land or stored in locations such as warehouses or construction sites. It is designed to protect businesses from loss or damage to property as it travels from its origin to its final destination. Inland marine insurance can also cover certain specialised or high-value items that are not typically covered by traditional commercial property insurance. For example, it can cover valuable papers, fine art, collectibles, and specialised equipment like bulldozers.

While inland marine insurance can protect the contents inside a vehicle, it does not typically cover the vehicle itself. To insure a vehicle for use on highways, businesses typically need to purchase commercial auto insurance or commercial vehicle insurance. This type of insurance covers vehicles such as trucks, taxis, buses, tractors, and other motor vehicles used for commercial purposes. It provides financial protection against external damages, theft, accidents, and natural calamities, as well as personal and third-party liabilities.

The specific insurance requirements for commercial vehicles can vary depending on the country, state, and type of vehicle. For example, in the United States, vehicles with a United States Department of Transportation (USDOT) or Motor Carrier (MC) number typically require extra insurance coverage. Minimum insurance requirements can also differ based on the weight of the vehicle, the type of goods being transported, and whether the vehicle is transporting passengers or hazardous materials.

In summary, motor vehicles designed for highways are generally not eligible for inland marine insurance coverage. Instead, businesses should seek commercial auto or vehicle insurance to ensure their vehicles are properly insured in accordance with the relevant laws and regulations.

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Goods damaged by natural disasters

Climate change and other factors have increased the frequency, severity, and reach of natural disasters, making insurance more difficult to obtain or afford for households and businesses in high-risk areas. As the risk and costs of natural disasters increase, insurance premiums also increase, making insurance less affordable.

Inland marine insurance is a type of property insurance that covers businesses that transport or store their property away from their primary location. It covers materials, equipment, and certain specialised items while they are in transit or stored at locations such as construction sites or warehouses. Inland marine insurance is often important for contractors, construction businesses, food truck vendors, caterers, and businesses that ship goods over land. It can also cover high-value items that are not adequately insured under a commercial property or business owner's policy.

However, inland marine insurance does not cover all risks. Some policies do not cover goods damaged by certain natural disasters, depending on the business's location. Inland marine insurance will also not cover stationary equipment, which is typically protected under a product, liability, or umbrella policy.

Businesses located in areas prone to natural disasters may need to purchase separate commercial insurance policies, such as commercial flood insurance or commercial earthquake insurance. These policies can help businesses recover financially after a natural disaster, protecting their assets and enabling them to return to their premises.

Stationary equipment

Inland marine insurance is a type of property insurance that covers materials and equipment while they are in transit or stored away from the business's primary location. It is intended to cover commercial property, including photography studios, motion picture production companies, professional musicians, boards of education, and municipalities. Despite the word "marine", this type of insurance has nothing to do with the sea or shipping goods overseas. Instead, it covers goods transported by truck or train.

Inland marine insurance is typically sought by businesses that have workers travelling between different job locations with their equipment and tools in their vehicles. It ensures reimbursement in the event of theft or loss. It also covers certain specialised items that traditional business property insurance does not cover. For example, while many commercial property policies cover computers, they may exclude damage caused by power failures and equipment breakdown.

However, inland marine insurance does not cover stationary equipment. Most companies protect stationary equipment through a product, liability, or umbrella policy. Stationary property is covered by standard commercial property insurance, which covers buildings and business personal property, including assets stored at a stationary business location.

If you are a contractor who leaves equipment at a storage yard, you would want inland marine coverage to compensate you in the event of loss, damage, or theft. The amount of coverage you need depends on the value of the equipment and the likelihood of it being damaged or stolen.

In summary, inland marine insurance does not cover stationary equipment, but rather protects goods that are in transit or stored away from the primary business location. Stationary equipment is typically covered by standard commercial property insurance or other specialised policies.

Boats and aircraft

Despite its name, inland marine insurance does not cover boats or aircraft. Instead, it covers high-value items that are transported over land or stored away from a business's primary location, such as a construction site or warehouse. It also covers certain specialised items that traditional business property insurance does not cover.

Inland marine insurance is derived from ocean marine insurance, which covers goods transported by sea. As ground transportation became more common, insurers adapted ocean marine policies to protect cargo transported by truck or train, calling these new policies “inland marine insurance”.

Businesses that require inland marine insurance include those that transport equipment to job sites, ship property over land, or have specialised types of property, such as art dealers who store artists' work.

For boats, commercial inland insurance is not applicable. Instead, commercial watercraft insurance, which includes both physical damage and liability coverages, is available for ocean and inland barges, boats, and vessels.

Aircraft are also not eligible for commercial inland insurance. Aviation property and inland marine insurance can be purchased together as part of a larger aviation insurance package or as a standalone policy. This type of insurance is designed to cover items that are transported or moved from one place to another, as well as certain types of specialised equipment.

Computers

Errors and omissions insurance (E&O), also called professional liability insurance, covers lawsuits over work quality, such as missing a repair deadline. It also covers certain types of liability associated with the work conducted on the computer. For example, if you open an email that contains a virus and that virus infects your clients’ computers, you could be held liable for damages. E&O insurance is typically bundled with cyber liability insurance to protect against mistakes that lead to cyberattacks or data breaches that affect a client.

Inland marine insurance provides additional coverage for computers and other equipment while they are in transit or stored away from your business’s primary locations, such as a construction site or in a warehouse. It covers goods transported by truck or train. It is often used in conjunction with commercial property insurance to ensure computers are covered both on and off company property.

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