Inland Marine Insurance
Your business property does not always stay at your business address. Inland marine insurance can help protect equipment, tools, materials and other covered property while it is being transported, used at a job site or temporarily stored away from your primary location.
What Is Inland Marine Insurance?
Despite the name, inland marine insurance has little to do with boats or ocean travel. It is a type of commercial property coverage designed around property that is mobile, in transit, temporarily stored, or otherwise exposed away from your normal business location.
That can include contractor equipment, tools, materials, specialized equipment, products being transported, and other business property that does not always fit neatly within a standard commercial property policy.
For a business that works from different locations, travels to customers, moves equipment between jobs, or regularly transports valuable property, that distinction can matter.
What Can Inland Marine Insurance Cover?
Inland marine coverage is designed around the way your business actually operates. Depending on the policy and coverage form, protection may be available for several different types of property and situations.
Tools & Equipment
Contractors and tradespeople often take expensive tools and equipment from one job to another. Inland marine coverage can be designed to address eligible equipment while it is being used, transported or temporarily stored.
Property in Transit
Business property can be exposed to theft, collision, damage or other losses while it is moving between locations. Inland marine insurance can provide coverage for eligible property during covered transportation.
Job Site Equipment
Construction and specialty contractors may have equipment and materials spread across several job sites. Coverage can be structured around the equipment and property your business uses away from its primary premises.
Installation Materials
Materials can spend time in transit, at a temporary location or waiting to be installed. An installation floater may be available for qualifying businesses and projects.
Specialized Equipment
Some businesses depend on equipment that is expensive, specialized or regularly moved between locations. Inland marine coverage can be tailored to certain types of specialized property.
Property in Your Care
Businesses such as repair shops, warehouses and other operations may temporarily have customers’ property in their possession. Certain inland marine coverages can address these exposures.
Who May Need Inland Marine Insurance?
Inland marine insurance is not limited to one type of business. The right coverage depends on what your business owns, transports, installs, stores or has in its care.
It may be worth discussing if valuable business property routinely leaves your primary location.
- General contractors and construction companies
- Electricians, plumbers and specialty trades
- Landscaping and outdoor service businesses
- Equipment dealers and rental businesses
- Businesses transporting valuable equipment or materials
- Businesses storing property at temporary locations
- Repair businesses holding customers’ property
- Businesses with specialized mobile equipment
A simple question to ask
What valuable business property would you have trouble replacing if it were stolen or damaged while it was away from your normal business location?
That question can be a useful starting point when determining whether inland marine coverage deserves a closer look.
Why Standard Business Property Coverage May Not Tell the Whole Story
A typical commercial property policy is generally built around property at a scheduled business location. Depending on the policy, some business equipment may have coverage away from the premises, but that does not automatically mean every mobile or transported property exposure is covered.
This is where inland marine insurance can become important. Rather than assuming your existing policy covers everything everywhere, it is worth looking at how your property actually moves through your business.
Think about your business day
- What equipment leaves your office or shop?
- What tools travel with your employees?
- What materials are delivered to job sites?
- What property is temporarily stored elsewhere?
- What customer property is in your possession?
- What would happen if that property were stolen or damaged?
Inland Marine Insurance for Contractors
Contractors are a natural fit for inland marine coverage because equipment and materials are rarely sitting in one place. Tools may travel in a truck every day. Equipment may move from one job site to another. Building materials may be delivered before they are installed.
Contractors’ equipment and installation-related coverage are examples of inland marine solutions that can be structured around these types of exposures.
Contractors’ Equipment
Coverage can be designed for qualifying owned, leased, rented or borrowed equipment, depending on the policy and insurer.
Installation Floater
May help protect qualifying materials and supplies while they are being transported to a project, temporarily stored and awaiting installation.
Job Site Exposure
Equipment and materials can face different risks once they leave the office or warehouse. Inland marine coverage can be structured around those changing locations.
Common Inland Marine Coverage Types
“Inland marine” is a broad category rather than one single one-size-fits-all policy. Depending on your business, different coverage forms may be available.
Contractors’ Equipment
Designed for eligible tools, machinery and equipment used in construction and other contracting operations.
Installation Floater
Designed for qualifying materials and supplies that are being transported, temporarily stored or prepared for installation.
Bailee Coverage
May address certain customer property in the care, custody or control of a business, such as a repair shop or warehouse.
Builders Risk
Specialized coverage may be available for qualifying structures and materials during construction or renovation.
Transportation & Cargo
Certain inland marine policies can address eligible property or goods while being transported over land.
Specialized Property
Certain specialized equipment, technology and other valuable property may require coverage specifically designed around how it is used and moved.
Inland Marine Insurance in Texas
Texas businesses can have very different insurance needs depending on the work they do. A contractor moving equipment between job sites has a different exposure than a business shipping products, operating a repair shop or storing customers’ property.
At Lavon Insurance, we take the time to understand how your business actually operates before recommending coverage. As an independent insurance agency, we can work with multiple insurance carriers to help identify options that fit your particular situation.
The goal is not simply to add another policy. It is to make sure the property that matters to your business is being considered while it is being used, moved and stored.
Let’s look at the full picture
When we review inland marine needs, we’ll want to understand things such as:
- What types of property you need to insure
- Where that property is normally located
- How often it is transported
- Whether employees take equipment to job sites
- Whether property is rented, leased or borrowed
- Whether you handle customers’ property
- The approximate value of the property
- How your existing commercial policies address the exposure
Inland Marine Insurance FAQs
Why is it called inland marine insurance?
The name comes from the historical development of insurance for goods being transported over land. Today, inland marine insurance is much broader and can apply to movable property, equipment, property in transit and other specialized exposures.
Does inland marine insurance cover boats?
Generally, inland marine insurance is not the same thing as ocean marine or boat insurance. Inland marine coverage is primarily associated with property moving over land, mobile equipment and specialized property exposures.
Does inland marine insurance cover tools?
It can, depending on the policy. Contractors and other businesses that regularly move valuable tools and equipment may have an inland marine exposure worth discussing with an insurance professional.
Does inland marine insurance cover equipment at a job site?
Certain inland marine policies are specifically designed for equipment used at job sites. The equipment, causes of loss, coverage territory, limits and exclusions will depend on the specific policy.
Is inland marine insurance included in a BOP?
Some business property may have limited coverage away from the primary premises under a Business Owners Policy or another commercial property policy. However, that does not necessarily provide the specialized coverage needed for every mobile or transported property exposure. A policy review can help identify potential gaps.
How much does inland marine insurance cost?
There is no single price for inland marine insurance. Premiums can vary based on the type and value of property, how it is used, where it travels, the business’s operations, coverage limits, deductibles and other underwriting factors.
Can rented or leased equipment be covered?
Coverage for rented, leased or borrowed equipment may be available under certain policies, but it should not be assumed. The ownership arrangement and policy wording need to be reviewed when determining the appropriate coverage.
Let’s Talk About Your Inland Marine Coverage
If your business relies on equipment, tools, materials or other property that regularly leaves your primary location, let’s take a closer look at how that property is insured.
Get an Inland Marine Insurance QuoteCoverage availability, terms, conditions, limits, exclusions, deductibles and eligibility vary by insurance carrier and policy. This page is for general informational purposes and does not amend, extend or replace any insurance policy.