Inland marine insurance is a crucial safeguard for your business, shielding you from potential losses or damages to equipment, machinery, products, or other property during land transportation. Whether your items are stored at a warehouse, utilized on a job site, or moved via train or truck, this insurance has you covered. It's an extension of ocean marine insurance, which specifically covers sea transportation.
Coverage Highlights:
Inland marine insurance protects movable property such as tools, equipment, and building materials from damage caused by covered perils. It also covers high-value items not adequately insured under your commercial property or business owners policy. For example, a bulldozer worth $150,000 used at construction sites.
Policies may be "all-risks," covering any peril except specific exclusions, or named perils, covering only listed hazards. Additionally, the valuation of damaged property varies, with some policies reimbursing based on replacement value without considering depreciation, while others use actual cash value, deducting for depreciation.
What's Not Covered:
Typically, inland marine policies exclude damage from insects, wear and tear, mold, floods, and earthquakes. They may also exclude vehicles, stationary property at your business premises, items shipped by sea or air, and damage occurring before shipping.
Specialized Coverage:
Several specialized inland marine insurance types cater to specific properties:
Contractor's Equipment Floater: Covers loss, damage, or theft of contractor's equipment or tools at various locations.
Electronic Data Processing (EDP) Insurance: Protects against damage to computers, laptops, and related equipment due to perils like fire, theft, or electrical disturbances.
Bailee Insurance: Covers liability for damage to customers' property in your care, applicable to businesses like dry cleaners and pet boarding facilities.
Accounts Receivable Insurance: Guards against financial losses from damaged or lost accounts receivable records or unpaid invoices.
Installation Floater: Protects contractors' equipment, materials, or supplies during transit or at job sites.
The 7 Best Inland Marine Insurance Companies of 2023
Best Overall: The Hartford
Best Bailee Insurance: Great American Insurance Group
Best for Contractors: Chubb
Best for Accounts Receivable: Nationwide
Best for Jewelry: Jewelers Mutual
Best for Photographers: Allstate
Best for Food Trucks: Food Liability Insurance Program
Limits and Deductibles:
Inland marine policies might have scheduled limits for individual items or blanket limits for groups of items. Specific limits can be set for high-value items, ensuring adequate coverage.
Is Inland Marine Insurance Necessary for Your Business?
Your business needs inland marine insurance if you transport property over land or if certain items lack proper coverage in your existing policies. For example, damage from power failures or equipment breakdown might not be covered under standard commercial property policies.
Distinguishing from General Liability:
Inland marine insurance and general liability insurance serve different purposes. While inland marine protects movable property, general liability covers claims from third parties for injuries or property damage due to your negligence.
In summary, inland marine insurance is vital for safeguarding materials and equipment during land transportation. Evaluate your business needs and consider this insurance to fill the gaps in your coverage.
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