Inland Marine Insurance

What is Inland Marine Insurance?

Inland marine insurance is a type of property coverage that aims to protect businesses from loss or damage to certain property that is not typically covered by standard property insurance policies. In contrast to traditional property insurance policies, inland marine insurance policies usually cover items that are on the move such as goods in transit, supplies that are temporarily stored off-premises, and other types of property not associated with land.

Inland marine insurance originally covered property transported over waterways such as cargo shipped across oceans or rivers. However, the coverage of inland marine insurance has expanded to cover land-based property as well. Inland marine coverage is highly specialized and caters to the unique needs of businesses that move goods from one place to another.

What Does Inland Marine Insurance Cover?

Inland marine insurance policies offer coverage for goods and equipment that are not stationary and are moved frequently. Coverage extends to property that is transported through multiple modes of transportation including air, land, and water. The primary focus of inland marine insurance is to protect businesses from loss or damage to property not covered under traditional property coverage.

Inland marine insurance typically provides coverage for the following categories of property:

Property in Transit: This includes goods or equipment being transported by a common carrier or by the business itself. Examples include products being moved by truck, train, or aircraft.

Communications Equipment: This refers to property used in transmitting communications. Examples include radio equipment, cell towers, and telephone networks.

Computer Equipment: This includes property used in electronic data processing such as computers, servers, and other related equipment.

Construction Equipment: This covers tools and heavy machinery used in construction, including cranes, backhoes, bulldozers, and others.

Fine Arts: This coverage includes artwork, antiques, and other collectibles that are displayed or transported.

Medical Equipment: This includes medical devices and equipment that are portable, such as ultrasound machines and dialysis equipment.

Is Inland Marine Insurance Required by Law?

Unlike auto insurance, inland marine insurance is not usually required by law. However, many businesses choose to carry inland marine coverage because it protects against property loss or damage that traditional property policies do not cover. Businesses that frequently transport property or have valuable equipment that is often on the move may benefit from purchasing inland marine insurance.

Does My Business Need Both Property and Inland Marine Insurance?

If your business has property that is frequently on the move, it may be necessary to purchase both property and inland marine insurance. This is because standard property insurance policies often exclude coverage for property that is not located on the premises. Additionally, property insurance policies typically have lower limits on certain types of property such as electronic data processing equipment or fine art. This lower limit may not be enough to cover the full value of these items, making inland marine insurance an important supplement to traditional property coverage.