Inland marine insurance is a versatile and essential form of property coverage that protects movable assets on land. Its name is a historical reference to a time when it covered goods traveling on inland waterways. Today, the term is used to describe a broad range of policies that protect property that is not at a fixed location, filling a significant gap left by traditional commercial property insurance. For businesses that rely on the transportation of goods or the use of mobile equipment, inland marine insurance is a critical risk management tool.
The fundamental purpose of this coverage is to protect property that is “floating” or in transit. Standard commercial property insurance typically covers assets only at a specific, named location, such as an office or a warehouse. If a business’s valuable tools, equipment, or products are damaged while being transported or used at a different site, they would not be covered. Inland marine insurance addresses this by providing “all-risks” coverage for a wide variety of movable property.
One of the most common applications of inland marine insurance is motor truck cargo coverage. This policy is essential for trucking companies and other carriers who are legally responsible for the goods they transport. It protects the carrier’s financial interests by covering loss or damage to the cargo while it is on the road, including risks like fire, collision, theft, and natural disasters. Even if a business uses a third-party carrier, they should consider their own shipper’s interest policy to ensure their goods are protected from the moment they leave the warehouse until they reach their destination, as the carrier’s liability may be limited.
Another crucial form is a contractors’ equipment floater. This is a must-have for construction companies, landscapers, and other contractors who frequently move expensive tools and machinery between different job sites. This policy covers equipment like bulldozers, backhoes, power tools, and generators, protecting them against risks such as theft, vandalism, fire, and collision while in transit or on a project site. Without this coverage, a single act of theft could be financially devastating for a small business.
Inland marine insurance also includes several other specialized coverages. Builder’s risk insurance is a type of inland marine policy that protects buildings and structures under construction, covering the building materials, fixtures, and equipment on site from risks like fire, theft, and wind. An installation floater provides similar protection for contractors who are installing equipment, covering the equipment from the time it leaves the contractor’s premises until it is installed and the job is completed. Other highly specialized forms of inland marine insurance exist for specific industries, such as a “Jeweler’s Block” policy, which covers a jeweler’s inventory whether it’s in a showroom, being transported to a trade show, or being held by a client.
In essence, inland marine insurance provides a crucial layer of protection for any business whose assets are not confined to a single physical location. By covering property in transit, at temporary job sites, or while in the possession of others, it ensures that a company’s financial health is not jeopardized by the loss of its movable assets.