Inland Marine Insurance Policy Information
Inland Marine Insurance. Commercial inland marine insurance is a type of insurance coverage that provides protection for businesses for their movable property, such as tools, equipment, and other business property that is transported or used away from the business's premises.
This coverage can be useful for businesses that frequently transport their property, such as contractors, manufacturers, and wholesalers. Inland marine insurance can cover losses or damages that occur while the property is in transit or storage, and it can also cover losses that occur while the property is being used at a temporary job site.
Inland marine insurance began as an extension of ocean marine insurance. Many customers needed coverage for property that moved on land between the dock at the seaport and the final inland destination. Ocean marine coverage forms did not insure these exposures because the property was no longer on or around water or under an ocean marine shipping document.
On the other hand, the property had not yet become a traditional property exposure because it was not at a specific or described location. Inland marine insurance coverage was developed to meet the need for insurance coverage on property in transit on or over land and at other than fixed locations.
The coverage provided by an inland marine insurance policy can be customized to meet the specific needs of a business, and it can be an important component of a business's overall insurance program.
Inland marine insurance protects your property from theft, damage or loss with rates as low as $17/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked inland marine insurance questions:
- What Is Inland Marine Insurance?
- How Much Does Inland Marine Insurance Cost?
- Why Do Businesses Need Inland Marine Insurance?
- What's The Difference Between Inland Insurance Marine & Ocean Marine Insurance?
- What Are The Commercial Uses For Inland Marine Coverage?
- How Can I Get Inland Marine Insurance For Personal Property?
- What Does Inland Marine Insurance Cover & Pay For?
What Is Inland Marine Insurance?
Inland marine insurance is a type of insurance that covers property that is transported within a country, such as goods in transit or equipment used in construction projects.
It is designed to protect businesses and individuals from losses or damage to property that is being moved or stored within a specific geographic area, such as within a country or state. This type of insurance can cover items such as machinery, equipment, and other property that is not permanently attached to a building or structure.
It can also cover the cost of transporting goods, such as freight and shipping, as well as losses from theft or other types of damage.
How Much Does Inland Marine Insurance Cost?
The average price of a standard inland marine policy for small businesses ranges from $17 to $69 per month based on location, type of equipment, tools or other business property covered, claims history and more.
Why Do Businesses Need Inland Marine Insurance?
The most typical method of hauling goods from one point to another within the United States is via truck, followed by surface mail and rail.
In most cases, a typical business policy never covers the shipping process for goods, and it's not in a shipper's best interest to trust the protection affording by the shipping carrier. This is particularly true of goods that are valuable or even irreplaceable.
Major shippers usually have many exclusions when shipping valuables. For instance, UPS does not provide protection for coins, precious stones, or cash.
Fedex limits the declared value of packages to $1K. This can leave a wide gap in coverage; for example, if you sell a 4K TV that retails for $2,500, and the TV becomes subsequently damaged by Fedex in transit, then you're on the hook for $1,500.
What's The Difference Between Inland Marine Insurance & Ocean Marine Insurance?
If you have goods shipped or transported via a vessel on the open water, then ocean marine insurance is the coverage you need. For protection of your items and inventory when they are offloaded from a sea-faring vessel, inland marine insurance is the protection to buy.
This type of insurance gets its name from its origin; it was originally meant to provide protection for goods that moved through inland waterways from a shipper to a receiver.
However, the definition was later expanded to encompass other types of inland transportation, including the use of planes, trains, and autos to haul goods or for goods being housed in warehouses or docked in bays.
Some examples of materials that require inland marine insurance include property in transit, contractor's equipment, mobile medical equipment, and property that is held by a bailee.
Even though basic or standard commercial property coverage forms and policies take care of most property insurance needs, gaps in coverage usually remain and losses can occur in situations where there is no coverage.
Several inland marine floaters, coverage forms, and policies are available to provide the coverage needed to eliminate those gaps in coverage and to cover property or situations that most commercial property coverage forms and policies do not cover.
What Are The Commercial Uses For Inland Marine Coverage?
For both small and larger businesses, inland marine insurance coverage can be a valuable asset. It protects your goods in a variety of scenarios, such as when you send a shipment as a supplier that's going to an end user, when you ship a private shipment to another party, when a shipment moves from your warehouse to a retail store, or when you ship samples to your sales force.
It covers the shipment of all sorts of off-site equipment and your customer's or client's property while you are in charge of it or in possession of it.
With inland marine insurance, protection is afforded on all movable property and business equipment as it moves between locations. Protection is usually afforded at a full level regardless of where the damage or loss occurs.
This might include tools and equipment, lift trucks, pet grooming supplies, vending machines, carnival-type rides, and more. Some of the more common inland marine insurance coverage forms include:
Accounts Receivable Coverage Form
Every insured should consider this important coverage. The basic property forms do not provide this important coverage and the BOPS and expanded coverage forms provide only small sub-limits. The coverage is also much narrower than that provided by the inland marine insurance forms.
Commercial Articles Coverage Form
This coverage form is custom-made for schools because it covers both camera equipment and musical instruments. However, its use should not be limited to only schools. Many other business and government entities can use this coverage form because they use cameras as part of their normal everyday operations but do not realize that the gaps in the standard commercial property coverage forms and policies could result in them not being covered.
Signs Coverage Forms
Standard commercial property coverage forms and policies do not usually cover neon signs when they are not attached to covered buildings and, when they are attached, the sub-limit is often inadequate. There are exceptions and coverage options but for larger signs and especially ones that are not on the named premises, separate inland marine insurance should be considered.
Bailees Coverage Forms
Any commercial operation that has custody of property of others or that works on, services, or repairs the property of others can use these coverage forms. They have applications beyond just laundry and dry-cleaning operations. While coverage for property of others is available on commercial property coverage forms and policies, the exclusions and limitations create gaps.
Builders Risk Coverage Forms
These coverage forms are often written on a blanket basis for the benefit of contractors that do the construction work. Some project owners may find it beneficial to have a policy in its own name to maintain control of the limits and coverage.
Contractors Equipment Coverage Forms
Contractors equipment is a significant property exposure for most contractors. Other types of business also use contractors equipment in their operations. Those other types may assume that their commercial property coverage forms and policies cover this equipment and they may be right…in some cases and/or up to a point. However, that equipment is usually excluded when it is not on the covered premises and the causes of loss are much more limited than on the inland marine forms.
Difference in Conditions (DIC) Coverage Forms
These coverage forms are frequently used to fill gaps in coverage. They cover perils or causes of loss that many primary property coverage forms and policies exclude, such as flood and earthquake. It is the best way to cover these perils/causes of loss as well as to pick up a little extra “just in case” coverage. The DIC is a flexible product for insureds with substantial property values at a single location or those that have property at many locations. Many risk managers consider this to be "must have" coverage.
Electronic Data Processing Coverage Forms
This should be a required minimum standard coverage for every insured because it is hard to imagine a business that has equipment, operations, or applications that doesn't use computers or electronic technology. Even the smallest insured should consider this coverage. An important feature is the hacker/virus protection that can be purchased.
Fine Arts Coverage Forms
Any insured business may have antiques, paintings, statues, tapestries, or other objects that qualify as fine arts. If the insured points out a specific item and brags about the artist, its value, or age, that item is probably an object of fine art. Fine Arts Coverage Forms are the best way to adequately insure valuable objects. The time to evaluate the coverage and limits required to properly insure an antique roll-top desk is before a loss occurs, not after. After a loss, the insurance company will probably determine that all it must pay is the replacement cost new for a desk that performs essentially the same functions as the antique desk.
Property Floater Coverage Forms
Nearly every insured has miscellaneous property items to insure. Some property regularly "floats" and moves from one location to another as a normal part of business operations. The insured may attend conventions or exhibitions. If it does, it should properly insure the property it takes to these off-site activities. Insureds that have salespersons who have samples to use in their demonstrations and selling activities need to insure those samples. Insureds with these or similar exposures are candidates for one or more of several miscellaneous Property Floater Coverage Forms.
Transportation Coverage Forms
Many insureds regularly ship or deliver goods and merchandise at their own risk. In these cases, the limited coverage, and sub-limits that standard property coverage forms and policies provide will not adequately cover the value of that property if a covered loss occurs. Transportation coverage should be purchased if there is a significant shipping or delivery exposure or if the value of goods and merchandise transported is significant.
Valuable Papers and Records Coverage Forms
Every insured should consider this important coverage. The basic property forms provide a very limited type of this important coverage, but it is very limited coverage with a low sub-limit. The BOPS and expanded coverage forms provide only small sub-limits. The coverage is also much narrower than that provided by the inland marine insurance forms. This is very important for any operation with a significant library or archive.
How Can I Get Inland Marine Insurance For Personal Property?
Inland marine insurance coverage doesn't just protect business property; it also protects personal property while it is in transit. This can be a valuable addition to your homeowner's policy. This protection is available whether your goods are being transported or not.
Some of the items that it can cover include jewelry, furs, silverware, cameras, golf clubs, computers and electronics, stamp collections, fine art, musical instruments, and other valuable merchandise.
Inland marine insurance coverage usually features a low deductible or even no deductible, which makes it possible for you to easily replace lost, damaged, or stolen items.
Securing proper coverage for special, higher-valued property is dependent upon documenting the property's current value. A critical method of valuation is the use of appraisals. An appraisal involves use of a knowledgeable source to examine a piece and then share his or her judgment on the piece's current replacement cost.
The level of individual judgment reflected in an appraisal has a direct relationship with the value of item or items being appraised. While technology is increasing its impact on the ability to quantify certain features that affect value and apply them to a given item, many pieces defy formulaic or generic valuation. Unique features and elements of a given piece bear greatly on its value.
Property's Use, Care And Storage
Regardless of the intrinsic value of the property in question, the likelihood of its maintaining or increasing the value is seriously affected by how the owners cares for, uses, and stores the property.
The value of a fur with two years' ownership will vary widely just based on whether, during warmer months, it is stored in a closet or in a furrier's vault.
A diamond that is worn all the time, including during sports activities and heavy outdoor work, will have a different condition (and value) than if it were only occasionally worn and, when not worn, stored in its original case.
This information has an important bearing on the exposure represented by the valuable property. Its use, care and storage will also affect the likelihood of whether a loss will be experienced.
Having detailed information on the environment surrounding the ownership of the property will help an insurer assess its willingness to provide insurance protection as well as how much protection needs to be provided.
What Does Inland Marine Insurance Cover & Pay For?
Inland Marine Insurance is a type of insurance policy that covers property in transit or property that is movable in nature. Here are some examples of Inland Marine Insurance claims:
Contractor's Equipment: A construction company is transporting its equipment to a job site and the truck carrying the equipment is involved in an accident. The Inland Marine Insurance policy would cover the damage to the equipment and any third-party liability claims.
Fine Arts: A museum is hosting a traveling exhibit and the artwork is damaged during transport. The Inland Marine Insurance policy would cover the cost of repairing or replacing the damaged artwork.
Commercial Property: A business stores its inventory in a storage unit that is damaged due to a fire. The Inland Marine Insurance policy would cover the cost of replacing the damaged inventory.
Cargo: A shipping company is transporting goods across the ocean and the cargo is lost at sea due to a storm. The Inland Marine Insurance policy would cover the cost of replacing the lost cargo.
Electronic Data Processing Equipment: A business's computer system is damaged during transport to a new location. The Inland Marine Insurance policy would cover the cost of repairing or replacing the damaged equipment.
In each of these scenarios, the Inland Marine Insurance policy would help pay for the damages or losses that occurred.
Inland Marine Insurance - The Bottom Line
When you're ready to purchase your inland marine insurance, be sure to speak with an commercial agent to get the best possible rates. Your agent can compare rates with top companies and help you find the right level of protection for your needs. Your agent can also review your business' particular situation to find a policy that meets your requirements and your budget.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Contractors Equipment
- Duplex Rental Property
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Jewelers Block
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
- Specialty Habitational
- Specialty Inland Marine
- Specialty Property
Commercial property insurance is a type of insurance that provides coverage for businesses against losses or damages to their business property. This can include buildings, equipment, inventory, and other assets owned by the business.
There are several types of commercial property insurance, including standard property insurance, business interruption insurance, and contents insurance.
- Standard property insurance covers damages to the physical structure of the business, such as the building, walls, and roof.
- Business interruption insurance covers lost income and expenses incurred during the repair or rebuilding process.
- Contents insurance covers damages to personal property within the business, such as office equipment and furniture.
Commercial property insurance is important for businesses of all sizes, as it helps protect against financial losses due to unforeseen circumstances, such as natural disasters, theft, or vandalism. It can also provide liability coverage in case of accidents or injuries on the business property.
To determine the appropriate level of property insurance for a business, it is important to consider the value of the business's assets, the location of the business, and the potential risks it faces. Many businesses choose to work with an insurance agent or broker to help identify the best coverage options for their specific needs.
Overall, commercial property insurance is a crucial part of any business's risk management strategy, helping to protect against financial losses and ensuring the long-term viability of the business.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.