What Is Inland Marine Insurance? (Coverage, Costs, & Who Needs It)

It sounds contradictory, but it’s a very helpful form of insurance.

Here’s what inland marine insurance is and why you need it.

Many business owners are surprised at how much of their property is “on the move” on a typical day. Tools in work trucks, inventory on delivery vans, rented equipment at a job site, displays at a trade show, all of that property is exposed to risks away from your main location.

If you move tools, equipment, inventory, or other business property between job sites, warehouses, events, or customers, your standard property policy may not fully protect it once it leaves your premises. That’s where inland marine insurance can step in.

In this article, we will explain what inland marine insurance is, what it does and doesn’t cover, which businesses need it, how costs are determined, and how to work with an independent agent to choose the right policy.

What Is Inland Marine Insurance?

Inland marine insurance is commercial coverage that protects business property while it’s away from your main location, in transit over land, or stored at a temporary site.

Even though the word “marine” is in the name, this coverage applies to property on land. The term comes from traditional marine insurance, which originally protected ships and cargo traveling over water. As trade and transportation moved inland, insurers developed similar coverage for goods, equipment, and other movable property traveling over land, and the inland version kept the marine label—even though it no longer involved ships.

In practical terms, inland marine insurance provides coverage for equipment, materials, and products being transported over land or stored off site while in transit. Ocean marine insurance still applies to goods transported by sea, and separate air cargo insurance can apply to goods transported by air.

Over time, inland marine insurance has expanded beyond simple shipments to protect many forms of movable property that your business relies on.

If you are curious about how insurance first developed in general, our History of Insurance video walks through the origins of marine and inland marine insurance in more detail.

What Inland Marine Insurance Covers

Inland marine policies have expanded to cover a wide range of property types. Depending on your policy, inland marine insurance can cover:

• Property transported over land (e.g., pallets of soda in an 18-wheeler)
• Property temporarily stored by a third party (e.g., items held in customs or in a warehouse).
• Property permanently stored in a moving vehicle (e.g., such as an ice cream truck or food truck stocked with supplies).
• Infrastructure (e.g., a cell phone tower or bridge).
• Another person’s property stored at your fixed location (e.g., a vending machine owned by a soda company at your bookstore).

You might also be surprised to know that inland marine coverage isn’t just for businesses with their own fleet. Items that are shipped by a third party service, such as FedEx, UPS, or the postal service, can be covered by an inland marine policy as well.

If you ship things regularly, inland marine coverage can be more practical than purchasing insurance for each individual package you mail.

What Inland Marine Insurance Does Not Cover

Inland marine insurance has important limits and exclusions. It generally doesn’t cover:

• Vehicles
• Earthquake and/or flood damage (water damage, however, is often covered)
• Damage that occurs prior to shipping
• Property transported by sea or air

Every policy is different and there are always exceptions to the rule. For more specific advice on your exact coverage, it’s important to review your policy and speak to your insurance agent.

Common Types Of Inland Marine Insurance Coverage

There are several different categories of risk that inland marine insurance can protect against. The right combination for you depends on how your business operates and how your property is used.

• Bailee’s customer coverage protects you from liability if a client’s property is damaged in your care.
• Builder’s risk protects structures, materials, and equipment during construction.
• Exhibition and fine art coverage protects valuable artifacts during exhibition and transit.
• Installation floater coverage protects materials from the moment they are loaded onto a truck to the moment they are installed.
• Motor truck cargo coverage protects goods being transported or delivered to a client.

Understanding each type of coverage will better help you and your independent insurance agent determine the best policy for you.

Who Needs Inland Marine Insurance?

Anyone who regularly sends or transports goods, materials, or equipment over land can benefit from inland marine insurance.

When given this definition, most people tend to think of construction or trucking companies, but think outside the box. If your tools, products, or equipment leave your main location, you may have an inland marine exposure.

Here is just a small sample of businesses that can—and should—have inland marine coverage:

• Businesses that attend trade shows, conventions, and exhibits
• Retail stores, including e-commerce businesses that ship products to customers
• Party rental companies
• Restoration companies that bring specialized equipment to job sites
• Museums and art galleries with pieces that travel for exhibitions
• Mechanic shops that keep customer vehicles or parts on site
• Landscapers who transport mowers, trailers, and tools from property to property
• Food trucks and mobile vendors with permanently stocked vehicles
• Caterers who move food, supplies, and equipment to events

Many business owners assume their property policy or business owners policy automatically protects everything they own, no matter where it is. Often, those policies are focused on a fixed location. Inland marine insurance is designed to follow your property, so it can help fill in important gaps when your business is on the move.

What Does Inland Marine Insurance Cost?

No blog post can give you an accurate estimate of any insurance policy, and you should not trust the ones that try.

As with any insurance premium, costs depend on a number of factors, including:

• What is being insured
• Your coverage type and limits
• The size and nature of your business
• How the property is transported

One important thing to discuss with your insurance agent is whether you want an “all risks” or a “named perils” policy.

All risk policies cover damage and loss caused by anything that is not specifically excluded in the contract. This type of policy can provide broad protection, but it’s still important to know what’s left out.

Named peril policies only cover damage and loss caused by the risks specifically named in your contract. If something happens that isn’t on that list, there is no coverage for that loss.

An independent agent can help you compare these approaches and decide which one better fits your business and your comfort level with risk.

How To Choose The Right Inland Marine Policy

Choosing inland marine insurance doesn’t have to be overwhelming. A few simple steps can help you and your agent build the right policy:

• List your movable property. Make a list of tools, equipment, inventory, and other items that regularly leave your main location.
• Note where and how you move property. Do you ship items across the country, drive them to local job sites, or take them to trade shows and events?
• Estimate values. Know roughly what it would cost to repair or replace the property you depend on.
• Review your existing policies. Look at your property and business insurance to see what’s already covered at your main location.
• Talk with an independent agent. Work with a local independent agent who understands inland marine insurance and can match you with carriers that fit your industry.

With this information in hand, it’s much easier to design inland marine insurance that protects what matters most to your business.

Harry Levine Insurance Delivers

Inland marine insurance is far from a one-trick pony. Whether you’re shipping a pallet of soda across the state, moving tools to a construction site, or attending a trade show, this valuable form of coverage can help make sure you’re protected while on the move.

But adequate protection requires more than a single policy. To make sure you have the coverage you need, meet with an independent insurance agency, such as Harry Levine Insurance.

For more than 30 years, HLI has provided Central Florida businesses with top quality customer service. We fully vet the insurance companies we work with to ensure that you receive only the best coverage while still respecting your budget.

Call today to see how we can help you.