The name “Inland Marine” is sort of a misnomer and doesn’t really give us a good idea of what this coverage may help protect. The term originated when businesses were moving cargo primarily by ships over oceans and rivers, and then moving that cargo over land. In reality, Inland Marine is a coverage for property that is often in transit and may not be covered by other policies, heavy equipment and/or machinery used and moved temporarily, computer or digital equipment that is used to transmit data, and for aspects of buildings under construction.
It is different from Cargo Insurance in that it is protecting the owner or renter of equipment as opposed to the shipper or transporter of the item(s). So, why would your business need it? Here are some examples to help illustrate the risks.
Transporting Equipment
If you often move equipment around to job sites – especially rented equipment – you may want an Inland Marine policy to protect you from theft, vandalism, or weather damage.
Example: You rent an industrial power generator for a job site. It is stolen form the site, and damage is done to the property in the process. Your builder’s risk policy and the coverage for your business’s liability may offer some coverage but may not cover additional claims cost for the rented generator. An Inland Marine policy may have helped you respond financially in this case.
Renting of Equipment
If your business rents out equipment, you may need more than just your property coverage for items if they are lost or damaged.
Example: Your business rents out video equipment. While in transit, the renter has an auto accident, and your equipment is destroyed. Your property policy excludes the loss in this example as being uncovered. An Inland Marine policy may have again helped you respond financially in this case.
Scheduled Property
If you have fine art, collections, jewelry, firearms, etc. on other property policies, there may be some exclusions for them while being moved.
Example: You own a store with a valuable sports memorabilia collection and take it to a tradeshow for display and sale. While in transit, your collection is damaged and loses significant value. Your scheduled property isn’t covered (in this example) while in-transit. If you had an Inland Marine policy for this property, you may have been covered for the damage.
As you can see, there are somewhat unique but not so infrequent cases where an Inland Marine policy is very necessary. We can help you understand where you may have these risks or gaps in your current coverages.
Talk with one of our agents to learn more!