Inland Marine Insurance

Keep Your Pockets Safe

Inland marine insurance provides coverage for your goods when in transit. It protects materials, products, and equipment when transported via land transports like trucks, trains, etc. It also fills the coverage gaps of other commercial insurance policies that you may have. 

For example, your grocery store sells frozen foods. The frozen items are brought to your store via the company-owned truck that’s equipped with proper refrigeration. When the goods make it to your store, you notice all of them are destroyed, causing you a loss of several thousand dollars. Turns out, the refrigerator had malfunctioned and exposed the frozen items to extreme heat while in transit. Usually, you’d have to pay the loss from your pockets, but with inland marine insurance, such losses are paid by your insurer. 

In this article

A Common Question—Why Inland “Marine” Insurance?

If inland marine insurance covers product damages while transporting via roadways, why is the term “marine” included in its name?  It’s because the insurance originated from ocean marine insurance. 

In ancient times, the primary mode of transportation was through waterways making ocean shipping widely popular. Instances of damage, loss, or theft of cargo during shipping were common. Consequently, shippers had to bear thousands of dollars for their losses. Hence, ocean marine insurance was developed. The insurance made cargo shipping safer.  

Over time the development of roadways and railways made inland shipping cheaper. People started to ship cargo in areas beyond the major port cities. That led to new demand for protecting goods during inland transit, which is now known as “inland marine insurance.”

What Does Inland Marine Insurance Cover?

Inland marine insurance covers losses and damages of five different property types:  

In transit

Properties transported from one place to another via trucks, rails, etc., are covered. A few examples are:
  • Employees of a photography company need to travel with expensive cameras and gears. The insurance covers the cameras, lighting, harnesses, and other equipment moved via the company’s van.
  • Suppliers deliver goods to their customers. However, during shipment, goods are prone to damages due to vehicular accidents.
  • Transferring private property, such as an heirloom, to someone else. While transporting the property, there is a risk of theft.
  • A firm’s property may be damaged while shifting from warehouses to retail outlets.
  • A company’s salesmen may have to carry goods during sales campaigns. The company can suffer losses if the goods are stolen or damaged while out on the road, but an inland marine policy can protect your company from such losses.
  • For a contractor, there is a risk of damage to site equipment such as generators, paving equipment, etc. If damages occur while in transit, inland marine insurance covers you. It also covers the loss when a contractor needs to operate equipment away from the business’s main place.
  • Artworks are prone to damage while in transit. According to the Financial Times, 60% of all art claims arise from transit-related events. For art galleries, inland marine insurance is instrumental in avoiding such losses.
  • For police and firemen, inland marine insurance protects the equipment installed in their vehicles.
  • Property in transit to a temporary location like a fair, exhibition, and convention are also covered.
Inland Marine Insurance-infographics

With all this information, take the first step towards protecting your business. Get a quote for inland marine insurance now

Moveable property

Inland marine insurance covers property moveable in a fixed location. Additionally, it also covers properties moved from the primary place of business. While it covers moveable equipment, it does not cover the vehicle itself. Here are a few examples of moveable property:

  • Medical equipment such as X-ray machines, MRI machines, etc.
  • A contractor’s equipment while moving it from storage to a job site.
  • A handyman’s tools and properties while they carry them at work.
  • Musical instruments such as a piano, guitar, amps, etc. that musicians carry at .
  • Photography equipment that is transported to different places as the job requires.
  • Pet grooming equipment such as clippers, slicker brush, greyhound comb, etc.
  • Vending machines that are kept outside the business premises.
  • The cooking equipment in a food truck. Equipment like fryers and refrigerators are more prone to damage due to the jerking and constant motion of the truck.
  • As a performing musician, capturing, mixing, and amplifying your sound involves choosing a live sound system that’s well matched to your music, budget, and the venues in which you play. Whether you’re a singer-songwriter performing in a café, a band playing in a local bar or club or a DJ playing weddings, you’re going to need a PA system to be heard. In this guide we’ll walk you through all the live sound gear you need, tell you how it works, and help you find the right PA equipment to make your music sound its best. Table of Contents What is a PA System? Prepackaged PA Systems Portability vs. Control PA Power Amplifiers Live Sound Mixers Signal Processing (Effects) Equalizers PA Speakers PA Monitor Speakers Microphones Cables and Other Live Sound System Essentials Tips & Tricks Glossary As a performing musician you want a PA system that can deliver your sound with clarity and definition. But with so many different pieces of equipment designed for different live performance needs, it can be difficult to know just what it is you should be looking for. Certainly, there are a lot of variables to consider when choosing a PA. For instance, you’ll need to think about the size of your audience, where your performances will be, how portable you need your system to be and how much money you can invest at pariuri casino. This guide will help walk you through these and other important considerations to help you find the gear that’s right for you, whether you’re buying your first PA system or looking to add equipment to your existing system.
how much does inland marine insurance cost

Transportation and communication properties

Inland marine insurance covers properties essential for transportation and communication. Below are a few examples of such properties:

  • Docks   
  • Dry docks and marine railways    
  • Transmission lines, towers, and related equipment    
  • Outdoor cranes and loading equipment    
  • Bridges    
  • Tunnels    
  • Piers    
  • Pipelines    
  • Wharves    

Vehicular installations

Vehicular installations refer to any equipment attached to a vehicle. For instance, a news van may have video broadcasting equipment installed. Commercial auto insurance does not cover such equipment. However, inland marine insurance protects from the loss of such equipment.  

    With all this information, take the first step towards protecting your business. Get a quote for inland marine insurance now

    What Does Inland Marine Insurance Not Cover? 

    Inland marine insurance does not cover every kind of loss. Below are the exclusions:

    Wear and tear

    Wear and tear can be due to insects, rust, climate, depreciation, hidden defects, etc. The insurance excludes losses due to such events.  

    Nuclear action

    Any damage due to nuclear hazards is beyond the scope of the insurance.

    Moral wrongs

    The insurance eliminates coverage of loss due to dishonesty, recklessness, or negligence. For example, a person hides their insured and high-valued art and claims theft to get money from their insurance provider.  

    War

    Any losses due to war are beyond the scope of inland marine insurance. War, undeclared war, or warlike action by any government-sponsored military force, revolution, rebellion, insurrection, etc., are the excluded causes of loss. 

    Government action

    The government may seize or destruct a covered property. For instance, the government may take your property for public use. Insurance excludes such loss. However, if the government has to destruct the insured property to prevent fire, the insurance covers such losses. 

    Inventory shortage

    Inland marine insurance does not cover losses caused by inaccurate inventory counting, record-keeping mistakes, etc. You will have to bear such losses on your own. 

    Loss of income or market

    Suppose that during a high-volume sales season, as shopkeeper’s insured inventory is destroyed. In no way will the insurer be liable for anticipated sales. However, for damages arising from covered risks, the insurer will compensate the shopkeeper up to their policy limits.

    Marine shipment

    Although “marine” is in the name, inland marine insurance does not cover properties transported over water. You can insure such properties through ocean marine insurance.  

    Miscellaneous Exclusions

    Inland marine insurance does not cover the following losses:

    • Loss due to insufficient planning, zoning, surveying, siting, grading, compacting, land use, or development of property.
    • Causes of loss such as faulty design, blueprint, specification, artistry, construction, renovation, remodeling, or repair of the property.
    • Loss resulting from the use of defective materials to construct, remodel, or repair the insured property.
    • Properties such as motorcycles, aircraft, snowmobiles, etc., that are typically covered by specially designed policies.
    • Loss due to a mysterious disappearance.

    Talk to your insurance provider or comment below for any questions you have regarding inland marine insurance. 

    Do I Need Inland Marine Insurance? 

    The U.S. Department of Transportation reports trucks as the major mode of shipment. In 2018, trucks carried around $10.784 billion worth of goods, up from $10.251 in 2012. The department expects the value to be $16.219 billion by 2045. Additionally, after controlling for inflation, per ton value is expected to rise from $1,016/ton in 2018 to $1,455/ton in 2045.   

    As shipping your valuable goods gets more and more expensive, you’ll want to make sure they’re protected in transit. You can save your business anywhere from thousands to millions of dollars by paying as low as $169 annually (depending on your coverage needs). Clearly, that’s a winning deal for you. 

    Many business owners believe that their commercial property insurance or business owners policy (BOP), will protect their goods. So, why do you need a separate inland marine policy?  

    To clarify, commercial property insurance may exclude properties not fixed on your business premises. Additionally, the insurance may limit coverage if the damage or loss of property occurs outside your business premises.  

    Furthermore, a BOP is more likely to provide coverage to off-site properties. For instance, a customized BOP may cover any inventories that you store off-site. Nevertheless, the coverage amounts for floating high-value goods or equipment is limited. To have sufficient coverage on such assets, you need inland marine insurance.  

    what is inland marine insurance

    Factors Determining the Cost of Insurance 

    The cost of inland marine insurance can be below $500, or can easily cross $10,000. Your premium will depend on the following:  

    Size of business

    Do you own a small business? Or are you operating a large-scale business? Given that a small-scale company has relatively lower property and revenue value, its insurance costs are lower than that of a large-scale business.  

    Nature of business

    Do you own a small business? Or are you operating a large-scale business? Given that a small-scale company has relatively lower property and revenue value, its insurance costs are lower than that of a large-scale business.  

    Coverage limits

    In simple terms, coverage limits reflect the level of protection your business needs. The greater the coverage limit, the higher the premium. Moreover, insurance costs depend on whether you want your policy to provide extensive coverage or just partial coverage.  

    Insured propery

    If the property meant for insurance is rare and highly-valuable, the premium rates will soar. The higher the property value, then the higher the severity of a possible loss. Therefore, the nature of the property significantly affects the cost of insurance.   

    Insurances with Inland Marine Coverages

    These are the types of insurances that can include inland marine coverage: 

    With all this information, take the first step towards protecting your business. Get a quote for inland marine insurance now. 

    FAQs 

    What are the risks covered by inland marine insurance?

    Insurance companies may offer you an all-risk policy or named-peril policy. The former covers any losses except those explicitly excluded while the latter covers risks explicitly included.  

    The common named perils are: 

    • Fire or lightning  
    • Theft or vandalism  
    • Windstorm or hail  
    • Riots or civil commotions  
    • Water damage, burst pipes, sprinkler leakage, etc. (flood is an exclusion)  
    • Smoke   
    • Sinkhole or building collapse  
    Can I request additional coverage in my inland marine policy?

    Yes, definitely. You can opt for an endorsement, which lets you add, remove, or modify your insurance policy’s coverages. Some common endorsements are installation floater, motor-truck cargo liability coverage, builder’s risk broadening, etc. Talk to your insurance agent to get all the information regarding the available endorsements available for your business. 

    What businesses need inland marine insurance?

    Businesses that own valuable property that is frequently transported from one location to the other need an inland marine policy. For instance, a contractor’s tools and equipment move across various job sites. Similarly, companies that store their property at an off-site location require this policy. In other words, a business whose property is not confined to a specific location needs this policy.

    What is the difference between inland marine insurance and ocean marine insurance?

    Inland marine insurance provides coverage for property, such as products, materials, and equipment in transit over land. Whereas, ocean marine insurance provides coverage for the property in transit over water.  

    With all this information, take the first step towards protecting your business.  Get a quote for inland marine insurance now

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