Inland Marine Insurance: What You Need To Know

Inland marine insurance covers products that need to be transported or stored on land. It is not the same as marine insurance or cargo insurance. Does your business move goods over land or store customer products? You might benefit from inland marine insurance. This type of coverage is useful for art dealers, construction companies, cleaners, and more.

Businesses can protect their moveable property and mitigate risks using inland marine insurance. Let’s go over what inland marine insurance is, its types of coverage, best industries, and other essentials.

What Does Inland Marine Insurance Cover?

Types of Coverage

1. Property in Transit

Inland marine insurance covers movable goods that are transported over land. This includes equipment, tools, building materials, and other items that get carried by car, train, truck, and other land modes of transport.

Let’s say your business is transporting photography equipment for an upcoming event. The $5,000 equipment gets lost in transit and cannot be found. Your inland marine insurance includes mysterious disappearance coverage. Even though you can’t determine why the equipment vanished in transit over land, the insurance payout still allows you to easily replace the lost photography equipment, minimizing the impact on your business.

2. Equipment and Tools Coverage

Inland marine insurance can cover tools and equipment that are used by contractors off-site. Construction companies and other businesses should consider inland marine coverage to protect their expensive equipment.

Equipment & tools insurance (AKA equipment floater insurance) is a specialized form of inland marine insurance that is best suited for construction and contractor businesses.

3. Mobile Property

Property and items that get moved to different locations are covered by inland marine insurance. Examples include:

• Vending machines
• Medical equipment
• Construction equipment
• Musical instruments
• Solar panels
• Fur coats and clothes

If your business handles any specialized equipment or moveable goods, it is highly recommended to have a good inland marine insurance policy. Without adequate insurance, you could lose thousands of dollars worth of equipment if they get damaged or lost in-transit.

4. Fine Art and Valuable Collections

Inland marine insurance covers high-value items that need to be transported or displayed, such as fine art, moveable exhibits, and other collectibles. Companies that store moveable artwork should consider obtaining inland marine insurance to cover valuable paintings, statues, and art collections.

Individuals who have a passion for collections may also benefit from inland marine insurance that includes fine art and museum coverage.

Examples of covered property include:

• Corporate art collections
• Trade show property
• Antiques and statues
• Museum and historical exhibitions

5. Bailee Coverage for Customer Goods

Some businesses need to temporarily hold customer property. Inland marine bailee insurance can protect businesses from the loss of customer property, such as expensive clothing. It is meant to insure items that might be damaged while in your care, custody, and control.

Bailee’s customer coverage serves as a more specific type of business liability insurance. If your general liability insurance or business owner’s policy doesn’t cover damage to customer property under your care, you may need bailee insurance.

Companies that can benefit from bailee insurance include:

• Dry cleaners
• Electronics repair shops
• Storage unit managers
• Trucking companies
• Furniture stores with delivery services
• Jewelry stores
• Pet stores (require animal bailee insurance)

Three types of bailee insurance exist: damage in process bailee, unlimited bailee, and mysterious disappearance bailee. Your company should compare policies to decide which option suits your needs and budget best.

6. Other Specialized Coverage

Plenty of more specialized inland marine insurance policies exist, catering to different industries and businesses. For example, you may benefit from:

• Installation floater insurance
• Builder’s risk insurance
• Trucking cargo insurance
• Accidental drop and damage

What Inland Marine Insurance Does Not Cover

Insurance policies may differ on the exclusions, so it is crucial to know what your inland marine insurance policy does not cover. Here are typical excluded perils and types of property:

Stationary property: Property that is not intended to move will not be covered by inland marine.

Air or sea transit: Inland marine insurance only covers land transit and land-based property. You would need freight and cargo insurance to cover property that is transported by air or sea.

Vehicles: Companies need commercial auto insurance to get work vehicles covered.

Standard wear and tear: Property that gets damaged over time due to accrued wear and tear will not have these types of damages covered.

Damage before shipping: If property gets damaged before it has been shipped, this is excluded from coverage. For example, medical equipment that gets damaged while it is being loaded onto a truck may not be covered.

Earthquake and floods: Natural disasters are typically excluded from inland marine insurance. Businesses should monitor extreme weather situations to avoid potential property damage in transit.

War: Riots, warfare, government action, and geopolitical reasons for property damage will not be covered by inland marine insurance. Radiation and nuclear events are also excluded from coverage.

If you need extra coverage for your business that common policies and inland marine policies don’t cover, you may need an umbrella insurance policy.

Always check your business’ insurance coverage details, filing deadlines, and exclusions before purchasing the policy or filing a claim. Reach out to an insurance agent to clarify any concerns or questions regarding your inland marine coverage.

Benefits of Inland Marine Insurance

Protection Beyond Standard Policies

Traditional commercial property insurance leaves much to be desired when it comes to specialized needs and risks. Inland marine insurance provides financial protection that is not found in standard business and home insurance policies.

No one wants their property to get damaged, vandalized, or lost without being insured. However, it’s more than common for property to get mishandled, dropped, or stolen in transit or during loading/unloading.

Having the right insurance can go a long way in helping you or your business recover from financial losses and replace lost goods.

Flexibility and Customization

Specialized commercial insurance policies are convenient for businesses that face specific risks.

Inland marine insurance companies may let you customize your insurance policy. Your business can tailor coverage to your needs, making insurance more cost-effective and useful.

A major issue faced by companies buying commercial property insurance is that a basic policy does not cover common risks. Inland marine insurance can cover a wide range of risks associated with transporting and handling property over land.

Reduces Financial Risk

When company or customer property gets damaged, stolen, or lost in transit or off-site, your business would need to pay a significant amount for repairs or replacement. Insurance is essential for mitigating the impact of losses.

Who Needs Inland Marine Insurance?

Key Industries

Companies that only operate in one location or digitally may not need inland marine insurance. On the other hand, businesses that need inland marine insurance often need it as an essential type of coverage.

Here are the key industries that require inland marine insurance.

• Construction
• Dry cleaners
• Logistics
• Event planning

Scenarios Where Coverage is Essential

Let’s go over cases where inland marine coverage can benefit a company:

• Transporting high-value goods and assets
• Using expensive equipment between different job sites
• Handling customer property
• Shipping products over land
• Moving property off-site

How to Source Inland Marine Insurance

Assess Your Insurance Needs

The first step to buying inland marine insurance is to evaluate your business needs. This includes checking what products and goods you need to store, transport, and handle.

Identify which of your operations would benefit from inland marine insurance.

In addition, see what gaps exist in your current business insurance coverage. You might need to update your insurance coverage to ensure your business is optimally covered.

Working with Insurance Brokers

Insurance brokers can help businesses secure the right inland marine insurance policy. If inland marine insurance isn’t right for you, they can also help you determine how to choose the right business insurance for your industry.

Make sure to find a knowledgeable, trustworthy broker who has experience in your specific type of policy. In this case, the broker should be familiar with inland marine insurance.

Comparing Quotes

Coverage limit: The inland marine insurance coverage limit is the maximum monetary amount you can receive for insurance claims. General inland marine policies cover property values below $10,000. Lower policy limits will make the insurance policy cheaper. Consider your company risks and property value when picking your coverage limit.

Premium: Small businesses typically pay around $29 a year for inland marine insurance. More comprehensive coverage and different insurers will give you different quotes for inland marine insurance. Marine inland insurance premiums depend on your chosen insurance company, risk factors, company size, and value of property.

Deductible: Inland marine insurance policies typically have a deductible of $1,000 to $3,000. This means you need to pay out-of-pocket and reach the deductible on a valid claim before insurance coverage kicks in.

Inland marine insurance costs vary based on numerous factors, such as transport methods, property, and value.

Evaluating Insurers

When choosing an inland marine insurance company, make sure to assess the insurer’s reputation, claims handling, and financial stability. Check out our expert Insurance Ranked best business insurance companies to find competitive and comprehensive coverage.

Bundling Insurance Policies

Whether you’re a small business or a large enterprise, bundling insurance policies can be a great way to streamline coverage and save on insurance premiums. Businesses often require general liability and commercial property insurance. You may be able to obtain a business owner’s policy (BOP) that includes vital insurance coverage, potentially including inland marine insurance.

Claims Process for Inland Marine Insurance

Steps to File a Claim

1. Prepare documentation

Businesses should always keep records of any property losses or incidents. When you need to file an insurance claim, your insurance company will request supporting evidence for your claim to prevent insurance fraud and invalid claims.

Info and documentation you need to file a goods-in-transit insurance claim include:

• Details of the incident
• Receipts and invoices
• Value of property (including actual cash value)
• Cost to restore/replace
• Police report (when applicable)
• Completed claim form

2. Submit a claim

Your business can submit an insurance claim through the insurer’s formal claims process. Double check your claim form to ensure there are no missing details or documentation.

3. Wait for a response

It can take a few months before your claim is entirely evaluated and rejected or accepted. More complex or high-value claims can take even longer. Be sure to file in a timely manner and answer questions the insurer may ask you.

4. Dispute if necessary

If your inland marine insurance claim gets rejected, your business may be able to file a dispute if it has been erroneously denied.

Common Challenges in Claims

Inadequate documentation commonly results in denied claims. Companies need to have legitimate records that support the value of property that has been lost.

Tips for a Smooth Claims Experience

To improve the chances of successfully filing an inland marine insurance claim, make sure your business fully understands the terms and coverage details of the policy first. Before transporting or handling property over land, it’s crucial to take inventory and note down the value of everything being shipped. If an object gets stolen and you have no records of it, it will be difficult to file a claim for it.

Conclusion

Inland marine insurance covers:

• Moveable property that is transported over land
• Specialized equipment
• Fine art and trade show property
• Stored customer property
• Other specialty goods

With the right inland marine insurance property, your business can bridge gaps within your risk management strategy.

Don’t let your business lose money when you can easily get your moveable property covered. Assess your exposure to risks and explore the best inland marine insurance today.