General liability insurance, often called commercial general liability (CGL) insurance, is a type...
Inland marine insurance, despite its name, does not pertain to the ocean or waterways. Instead, it provides coverage for losses involving an organization’s products, materials, and equipment when these items are damaged or lost due to covered perils while being transported over land (e.g., via van, truck, or train). This insurance can also protect against losses when these items are stored at a third-party warehouse or a location other than the organization’s primary facility.
The Critical Role of Inland Marine Insurance
Inland marine insurance is essential for safeguarding an organization's finances against incidents related to transporting or storing valuable goods and business property. Understanding this coverage and its key protections is crucial for organizations to ensure they are adequately protected.
What is Inland Marine Insurance?
Inland marine insurance compensates for transportation- and storage-related losses, particularly those affecting an organization’s products, materials, and equipment. This coverage applies to business property transported over land, within commercial vehicles, or temporarily in another party’s care. It also covers items stored at customer premises, high-value or movable items stored at fixed locations, and business property integral to community infrastructure, such as communication towers and bridges.
Organizations that ship expensive products, move key assets between locations or travel with essential equipment for off-site projects significantly benefit from this coverage. Examples of covered items include:
- Computers, servers, laptops, electronics, and other networking tools
- Construction and contracting equipment
- Medical and scientific devices
- Fine art pieces and collectibles
- Trade show exhibits and sales samples
- Professional cameras, lenses, tripods, and other photography gear
- Additional cargo and delivery items
Inland marine insurance can cover repair or replacement costs if these items are damaged or lost due to covered perils like collisions, fire, theft, wind, hail, and water-related incidents. It can also reimburse losses from mysterious disappearances or accidental damage during transportation.
Types of Inland Marine Insurance
Inland marine insurance policies vary between insurers, but common types include:
Motor Truck Cargo Coverage
This coverage protects goods and business property transported in commercial vehicles. For example, if a road accident damages an organization’s cargo, motor truck cargo coverage can cover the replacement expenses.
Builder’s Risk Coverage
Also known as course of construction insurance, this coverage compensates for losses affecting equipment and materials used in construction projects and structures being built. It mainly serves construction companies and lasts for the project duration, from when materials arrive at the site to project completion.
Bailee Coverage
Bailee coverage reimburses losses impacting another party’s property while in an organization’s temporary care. For instance, if a fire damages a customer’s dress shirts at a dry-cleaning business, this coverage can pay for replacement costs.
Contractor’s Tools and Equipment Coverage
Also called equipment floater insurance, protects movable equipment and tools transported to and from different job sites. It is primarily for construction, maintenance, and repair professionals and covers items like bulldozers, forklifts, mowers, and portable tools.
Exhibition and Fine Art Coverage
This coverage pays for losses affecting high-value items, such as works of art, during transit, on loan, or display in an exhibit. For example, if a painting is stolen while being transported to an exhibit, this coverage reimburses the replacement expenses.
Installation Floater Coverage
Installation floater coverage compensates for losses impacting materials planned for installation at a job site, both during transportation and storage. If a hailstorm damages a pipe stored in a plumbing company’s warehouse before installation, this coverage can help cover replacement costs.
Conclusion
Inland marine insurance is vital for reducing the financial impact of transportation- and storage-related losses, helping organizations maintain operational success. By understanding and reviewing the main protections and policy types available, organizations can tailor their inland marine insurance to meet their specific needs.
Contact us for more comprehensive insurance solutions tailored to your business requirements: Just give us a call at 909.466.7876 today!
Also, learn about The Value of Employment Practices Liability Insurance by reading this short article. Or, answer the question: Is a Surety Bond the Same as an Insurance Policy?
