Jane Dotson
Inland marine insurance is a type of commercial property coverage that protects businesses from losses incurred by damage or theft to equipment, machinery, products, or other property transported over land. It is called inland marine insurance because it is an offshoot of ocean marine insurance, which covers property transported over water, with the distinction of 'inland' being created in the 1700s to describe products being transported by land.
| Characteristics | Values |
|---|---|
| Type of insurance | Commercial property coverage |
| What it covers | Equipment, machinery, tools, cargo, and other property that’s transported over land by train or truck |
| Coverage limit | Scheduled limits, blanket limits, or a combination of the two |
| Coverage for high-value items | Yes |
| Coverage for items not covered by property insurance | Yes |
| Coverage for property in transit | Yes |
| Coverage for property stored at a warehouse | Yes |
| Coverage for property at a job site | Yes |
| Coverage for property owned by someone else but stored at the policyholder's location | Yes |
| Coverage for property in the policyholder's possession | Yes |
| Coverage for property in transit by train or truck | Yes |
| Coverage for property in transit by ship | No |
| Type of policy | Floater policy |
| Deductible | Yes, e.g., $1,000 or $2,500 |
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What You'll Learn
Inland marine insurance is an offshoot of ocean marine insurance
Inland marine insurance is a type of commercial property coverage that covers equipment, machinery, tools, cargo, and other property transported over land by train or truck. It is also known as a "floater policy" because the coverage goes wherever the insured property is.
Inland marine insurance is, indeed, an offshoot of ocean marine insurance. The original marine insurance, which came first in the 1700s, covered property transported by sea. As cargo began to be transported over land, insurance companies started to cover these goods under the same policy, and the term "inland" was added to the name to create "inland marine insurance".
Inland marine insurance covers a wide range of specialty equipment and products, including computers, communication and networking equipment, construction and contracting equipment, medical and scientific equipment, and photography equipment. It also covers high-value items that are not adequately insured or are not covered under a standard business owner's policy.
Inland marine insurance is especially important for businesses that frequently ship products or equipment, particularly high-value items. It can also cover property that is owned by someone else but stored at the policyholder's location, such as in a warehouse.
In summary, inland marine insurance is an extension of ocean marine insurance, adapting to the changing nature of cargo transportation and providing coverage for a wide range of movable property transported over land.
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It covers property transported over land
Inland marine insurance is a type of commercial property coverage that covers equipment, machinery, tools, cargo, and other property transported over land by train or truck. It is called "marine" insurance because it is an offshoot of ocean marine insurance, which protects property transported over water, with "inland" added to the name to indicate that it covers goods transported over land.
Inland marine insurance covers a wide range of specialty equipment and products, including computers, communication and networking equipment, construction and contracting equipment, medical and scientific equipment, and photography equipment. It also covers high-value items that are not adequately insured or are not covered under a standard commercial property or business owners policy. For example, a business may have a valuable trade show booth that is frequently shipped around the country and stored off-site by a vendor. In this case, inland marine insurance can provide the necessary protection.
Inland marine insurance can also cover property that is owned by someone else but stored at the policyholder's location or in their possession, even off-premises. This includes property that is being stored at a warehouse or moved from place to place. It can also cover materials from the moment they are loaded onto a truck until they are put to use or installed.
Inland marine insurance is particularly important for businesses that frequently ship products or equipment, especially high-value items. It offers financial protection and helps businesses manage their risks by providing financial support when unexpected events occur. This type of insurance can be tailored to specific needs, with different limits and deductibles available depending on the value of the items being insured.
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It covers high-value items not covered by property insurance
Inland marine insurance is a type of commercial property coverage that covers high-value items not covered by property insurance. It is designed for businesses that ship or transport products, equipment, or other property over land, rather than by sea. It is an offshoot of ocean marine insurance, which covers property transported by sea.
Inland marine insurance can cover a wide range of specialty equipment and products, including computers, servers, laptops, communications and networking equipment, construction and contracting equipment, medical and scientific equipment, and photography equipment. It can also cover property that is in transit, such as items being shipped or transported by train or truck, or stored in a warehouse or third-party facility.
One of the key benefits of inland marine insurance is that it covers high-value items that may not be adequately insured or covered under a standard commercial property or business owners policy. For example, a business may own a $150,000 bulldozer that is used at construction sites and transported between locations. This item would be covered by inland marine insurance but may not be fully covered by a standard property insurance policy.
Inland marine insurance policies can also provide coverage for specific items or groups of items. A scheduled limit applies to a single item, while a blanket limit applies to a group of items. For example, a business may choose a $150,000 scheduled limit for a bulldozer and a $35,000 blanket limit for tools and other property. In the event of a loss, the insurer will pay up to the limit (scheduled or blanket) that applies to the damaged property.
In addition to covering high-value items, inland marine insurance can also provide coverage for property that is temporarily in the possession of another business, such as a warehouse or repair shop. This type of coverage is known as Bailee's Customer Coverage. Inland marine insurance can also include Builder's Risk coverage, which protects structures and materials during new construction projects or renovations.
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It covers equipment owned by others while in the policyholder's possession
Inland marine insurance is a type of commercial property coverage that covers equipment, machinery, tools, and other property that is transported over land, such as by train or truck. It also covers property stored at a warehouse or job site. This type of insurance is especially important for businesses that frequently ship high-value products or materials, which may not be covered by basic property coverage.
Inland marine insurance can provide coverage for equipment owned by others while in the policyholder's possession. This includes situations where the policyholder is operating a warehouse or repair shop that stores clients' property. For example, if a client's property is left in the care of your business and it is lost or damaged, inland marine insurance can provide coverage. This type of coverage is known as Bailee's Customer Coverage.
In addition to Bailee's Customer Coverage, there are other special types of inland marine coverage. Builder's Risk insurance protects structures and materials during construction projects or renovations. Exhibition and Fine Art Coverage keeps valuable items protected while on exhibit, in transit, or on loan. Installation Floater covers materials from the moment they are loaded onto a truck until they are put to use or installed. Motor Truck Cargo Coverage protects clients' goods while your business transports and delivers them.
Inland marine insurance is not limited to shippers, transporters, or rental equipment businesses. It offers a wide range of coverage for other areas, including protection for assets and property that are movable or in transit over land. It can also cover property designed to facilitate transportation or communication, such as commuter rail systems and cell phone towers.
In summary, inland marine insurance provides coverage for equipment owned by others while in the policyholder's possession. It is important for businesses to consider their specific needs and operations when determining whether inland marine insurance is necessary. An insurance professional can help assess the risks and prescribe the best coverage.
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It covers property stored at the policyholder's location
Inland marine insurance covers property stored at the policyholder's location, such as in a warehouse, as well as property in transit. It is designed to cover high-value items or items not covered by standard property coverage in a business owner's policy. This includes equipment, machinery, tools, and other specialty products, such as computers, construction equipment, and medical equipment.
Inland marine insurance is an offshoot of ocean marine insurance, which covers property transported by sea. As cargo began to be transported over land, insurance companies extended the coverage to include goods transported by train or truck, hence the name "inland marine insurance".
The coverage provided by inland marine insurance is not limited to property in transit but also includes property stored at a specific location, such as a warehouse. This type of insurance is particularly relevant for businesses that frequently ship or store high-value products, equipment, or materials that may not be adequately covered by basic property insurance.
For example, a business may choose to insure a valuable trade show booth that is frequently shipped around the country and stored off-site by a vendor. Inland marine insurance can provide peace of mind and financial protection in the event of loss or damage to such property.
In addition, inland marine insurance can also cover property temporarily in the policyholder's possession. For instance, if a business operates a warehouse or repair shop, bailee's customer coverage under inland marine insurance can protect clients' property left in their care.
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Frequently asked questions
The term "inland marine" is an old-fashioned term that has been in use since the 1700s when marine insurance covered the transportation of goods over water. As cargo began to be transported over land, insurance companies started covering these goods under the same policy, and "inland" was added to the name to distinguish it from marine insurance.
Inland marine insurance covers movable property, such as tools, equipment, building materials, and high-value items that are transported over land by train or truck.
Inland marine insurance is typically purchased by businesses that frequently ship products, equipment, or high-value items. It is especially important if the items being shipped are not adequately covered by a standard property or business owner's policy.
Inland marine insurance can cover a wide range of items, including computers, medical equipment, construction equipment, fine art, and solar energy equipment. It can also cover property that is stored in a warehouse or at a job site.
Inland marine insurance policies typically have scheduled limits, blanket limits, or a combination of both. A scheduled limit applies to a specific item, while a blanket limit applies to a group of items. When a loss occurs, the insurer will pay up to the limit for the damaged property, minus any deductible.
