What is inland marine insurance?
When people hear the words Inland Marine Insurance the first thing they typically think of is boat insurance. Many people get this confused with Marine Insurance which covers products transported by water. Marine insurance was born years ago when Lloyd’s of London underwriters started insuring cargo on international voyages by ocean or sea. They provided coverage for this cargo on an “all risk” basis. When the twentieth century came along, the means of transportation became more diverse with the advent of planes, trains, and eventually automobiles. With this progression, the demand for coverage of products in transit by land came into existence. Because of this demand, inland marine insurance was created.
Inland marine insurance is not a common coverage for all business types but is one of the more varied types of Property & Casualty insurance due to the unique exposures. Many times people confuse Property Coverage with Inland Marine Coverage. Property coverage is intended to cover stationary property, property that predominately remains at a “scheduled” premises and property not considered “unique.” Inland marine coverage is far more flexible. It is designed for property that may be moving from location to location, property off premises at a new location(s), or work locations, and/or subject to “unique” causes of loss that traditional property policies do not cover.
Modern Inland marine policies cover many things but the four major types of policies are:
- Property or cargo in transit
- Building under construction (also known as builder’s risk insurance)
- Contractor’s equipment
- Computer equipment & data
Inland marine insurance also covers some of the following unique and/or expensive exposures for businesses:
- Bailee’s Coverage – property of others accepted for cleaning and repairing
- Furriers Block – loss or damage to inventory of a fur dealer
- Accounts receivable
- Equipment dealers
- Camera and Musical Instruments
- Fine Arts
- Jewelers Block – loss or damage to inventory of a jeweler
- Exhibition Floater – loss or damage to your property, or property of others in your care and custody, while away from your premises at exhibit sites where you exhibit merchandise. Also, covers while in transit to or from such exhibit sites.
So why would your business need Inland marine insurance? If you place items in your vehicle daily to get your work done (computer, tools, data, etc, then these items might not be included on your property policy and if they are covered the coverage may be limited. If you clean, repair, or perform work on property of others at your premises then Inland marine coverage could benefit and protect you from a major loss.
Inland marine insurance is one of the most unique and varied Property and Casualty policies available and definitely worth looking into regardless of the type of business you are in for the peace of mind that you are covered properly.