What Is Inland Marine Insurance Coverage?
Inland marine insurance covers products, materials and equipment while they are being transported over land by a truck or train. Inland marine insurance also covers these items if they are located at a temporary location in the hands of a third party. Losses, such as collision and cargo theft, are covered by inland marine insurance.
Marine insurance is a different type of product that covers products and equipment transported over waters by a ship. Today, we’ll look at how inland marine insurance works and who needs it. It’s important to note first that inland marine insurance is not included in the two most common types of insurance packages: the business owner policy and commercial package policy. While these products cover property at a specific location, they do not cover items that are being shipped. Inland marine insurance is an add-on coverage that can benefit your company if you frequently ship products or equipment.
What Products Are Covered with Inland Marine insurance?
Typically high-value items are covered in this insurance which are often excluded from basic property coverage. Products and equipment that are covered include:
- Computers, servers, and laptops
- Construction and maintenance equipment
- Medical and scientific equipment
- Valuable art and paintings
What Risks Are Covered by Inland Marine Insurance?
Inland marine insurance protects business property by helping repay or replace damaged property. Typically the insurer will list the type of risk that is protected under their policy but most will cover damages caused by:
- Fire or lightning
- Theft or vandalism
- Damage from vehicles or train
- Weather damage
What Does Inland Marine Insurance Cover?
We already know that inland marine insurance covers property that is being transported or moved out by land but this insurance can also cover movable property that is in a fixed location. For example a food truck has lots of cooking equipment inside and under this insurance the cooking supplies are covered but not the truck, which should have coverage with a business auto policy.
Marine inland coverage not only protects physical products but electronic data can also be protected with this insurance as long as that information is being transferred. Many businesses borrow very high value items from other businesses for a certain amount of time. During this time the borrowing business may want to consider buying inland marine insurance because it covers products that are on loan, in transit or in exhibition.
What Does Marine Inland Insurance Not Cover?
Inland marine is only intended to protect supplies that are being transported. It does not protect items that have not shipped nor would it cover items that are damaged after they have reached their destination.
If the company has their own van that they use to transport their products and it suffers an accident, inland marine insurance would only cover the products that are being transported and not the damages made to the van, which would be covered by commercial auto insurance. Inland marine insurance does not apply if there is intentionally damage made to the products.
Who Needs Marine Inland Insurance?
Businesses that ship and transport property overland should definitely consider receiving this insurance to protect their products. Inland Marine insurance is intended for businesses that frequently shiproducts inland and/or transfer high value items which may be unprotected in-transit.
Often, this type of insurance is available for purchase as an add on to an existing general liability business insurance policy. Most commercial insurance policies do not cover property that is not located in your business property. Some policies exclude coverage for certain items. Only inland marine insurance can cover the gap in time when your products are not covered.
Also, if your business stores products and goods in a location other than the covered business property, you should consider getting coverage with inland marine insurance. Businesses can help protect themselves, customers and vendors by covering all products from damage at every juncture.
How Much Does Inland Marine Insurance Cost?
Many factors are considered when insurers determine the cost of this coverage. These factors include the size of the business, how much protection you buy and industry requirements. On average, the premium for inland marine insurance is $14 per month and totals to $169 annually to cover every $5,000 worth of property.
The more coverage you buy, the higher the premium will be. In certain industries, higher coverage is sometimes required for products. For example, photography and video professionals often transport more valuable items and have a maximum coverage of $86,000 and pay, on average, about $579 a year on inland marine coverage.
Typical annual cost of inland marine insurance by industry:
- Building Design- $2508
- Photo and Video- $579
- Retail- $500
- Media and Advertising- $386
- Food and Beverage- $281
- Cleaning Services/ Construction/Landscaping- $169
Buying Inland Marine Insurance
It’s important to work with a reliable insurance agent who understands your business, its risks and challenges. With the right agent, you can create a business insurance plan that covers all perils, and inland marine insurance can be added to that policy. The best way to get the most affordable and most comprehensive coverage package, start by entering the zip code of your business below, answer a few questions and we can begin customizing a plan that suits your needs.
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