The concept of Inland Marine insurance may be hard to wrap your head around, especially since the terms “marine” and “inland” seem to contradict each other. So what does inland marine insurance cover and how can agents help their clients understand how it protects their business from liability?
Here’s an overview of Inland Marine insurance and why it’s a key component of AmTrust’s businessowners policy and an add-on option for our commercial packages.
What is Commercial Inland Marine Insurance? What Does it Cover?
In general, commercial Inland Marine insurance covers any property that is movable, transportable, or involved in transferring information. For example, these are some things that Inland Marine insurance might cover:
- Contractor’s equipment
- Valuable artwork, like paintings, photographs, and sculptures
- Transportation equipment such as food trucks or cargo vans
- Mobile tools and equipment for construction, landscaping, etc.
- Property in transit like construction tools and supplies
- Computer equipment, including servers and laptops
- Communication equipment and networking tools
- Scientific and medical equipment
What are Inland Marine Risks?
If you’re thinking about getting Inland Marine insurance, it’s important to consider the nature of your business operations. While it was developed to protect against losses while shipping goods, Inland Marine insurance may protect your business against a myriad of other property damage risks. Some of these include:
- Bailee’s customer coverage: This is designed to protect your business from liability if a client's’ property is damaged in your care, like if you operate a repair shop.
- Builders’ risk: During construction projects, builders’ risk can protect the structures and materials used.
- Exhibition and fine art coverage: If a valuable piece of artwork is on display, in transit, or on loan, exhibition and fine art coverage is designed to protect it.
- Installation floater: This can cover goods from damage once they’re loaded on a truck until they are put to use.
- Motor truck cargo coverage: When your business is transporting goods or delivering them to a client, this coverage can protect goods from damage.
A Brief History of Inland Marine Insurance
When business insurance was in its infancy, Ocean Marine insurance covered ships from losses acquired on their way to port. For example, if any goods were damaged from your ship getting caught in a storm, Ocean Marine insurance would compensate you for some of those financial losses.
This offered businesses sufficient coverage when boats were the primary means for shipping.
But over time, more businesses began transporting goods over rivers and land by trains, trucks, barges, and buses. Cargo still needed to be protected, so insurers began offering inland marine policies as a branch of ocean marine coverage.
Does my Business Need Inland Marine Insurance?
If you’re considering Inland Marine coverage, your insurance agent can help you decide if it’s right for your business. Often, Inland Marine is included in a BOP or package and is bundled with other coverages such as crime, general liability and property.
This material is for informational purposes only, summarizes coverages and services that may be available in a policy, and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors.
When it comes to business insurance, inland marine is one of the most misunderstood terms from a consumer perspective. That’s partly because of its name and partly because of the wide range of perils it can protect against.
Inland marine insurance is best known for builder's risk coverage or its ability to protect products and equipment in transit, but it’s really much more than that. Inland marine policies can cover everything from equipment and materials on a jobsite to the final installation of the building’s AC system and even jewelry. Coverage can be structured for a specific project and enumerated risks, or offer protection from all perils year-round.
Related read: What is inland marine insurance?
You can purchase inland marine coverage through standalone coverage, or monoline, or add it as an endorsement to a businessowners policy (called a BOP), coverage designed specifically for small businesses. Here are a few specific inland marine insurance coverage examples.
Specific examples of inland marine insurance coverage:
- Rigger’s liability coverage: This is a specific example of inland marine insurance that pertains to contractors. It can cover cargo and equipment while being transported by crane, such as lifting an air conditioning unit onto a roof. A standard general liability policy may not cover this type of risk due to an exclusion. This would be considered an endorsement to a commercial general liability policy.
- Tool and die coverage: Known as a class of machinists in manufacturing, tool and die makers produce specialized tools to produce a custom metal part. Tool and die floater coverage helps protect specialized tooling and molds used in manufacturing. A manufacturer may want this policy when their property is located on the premises of another manufacturer through which they have a contract.
- Installation floaters coverage: This coverage pertains to an inland marine policy that can protect property, typically equipment, being installed by a contractor. This is a unique type of builder’s risk coverage that is often used by contractors.
- Jewelers block coverage: This would be an endorsement to an inland marine policy to help provide coverage for loss or damage to jewelry stock held by retailers, wholesalers, manufacturers and pawn brokers. An example claim could happen in a retail location or a manufacturing facility holding stock before shipping it out to a wholesaler. If you deal in jewelry stock, you’ll want to learn more about jewelers block insurance.
- Accounts receivable coverage: This specialized endorsement helps to cover losses caused by damage to accounts receivable records. It’s pretty self-explanatory, but it can come in handy if such an event occurs, plus it can provide peace of mind.
What does inland marine insurance not cover?
While inland marine policies have expanded their scope greatly since their introduction, they still don’t cover every risk faced by your business. Common exclusions include:
- Company vehicles.
- Neglect or intentional damage.
- Improperly packed items during transit.
- Bodily injury or damages to property (that’s covered by your commercial liability).
It’s also important to distinguish between policies that cover only specific perils enumerated in the policy, such as named perils coverage, and those that cover everything not specifically excluded, all risk, or open perils coverage.
Common perils covered by an inland marine policy include theft, fire, wind, hail and water damage. Some policies may also include coverage for “mysterious disappearances” and accidental drops.
How is inland marine coverage sold?
This largely depends on the insurer and your needs as a company. If your business is performing a one-off or one-time project, you may want to consider a short-term policy (assuming your insurer offers it). If your business’ primary function is transportation or equipment installation, however, you’ll want to work with your agent to obtain comprehensive, ongoing protection. Depending on your needs, you may be able to find lower premiums by purchasing a named perils coverage. The biggest determinant of your inland marine policy rates, as with most insurance coverage, is the value of the items being protected.
What if I need a policy that exceeds my coverage limits?
You may be able to secure an endorsement from your insurer to cover the additional gap in value. This extra cost is typically passed onto the policyholder.
If you still have questions about inland marine insurance, reach out to a UFG agent today to talk about your options. They can help tailor a policy or endorsement to cover your business today.
5 examples of inland marine insurance coverage
August 9, 2021 UFG Insurance Business Read Time: 4 min
When it comes to business insurance, inland marine is one of the most misunderstood terms from a consumer perspective. That’s partly because of its name and partly because of the wide range of perils it can protect against.
Inland marine insurance is best known for builder's risk coverage or its ability to protect products and equipment in transit, but it’s really much more than that. Inland marine policies can cover everything from equipment and materials on a jobsite to the final installation of the building’s AC system and even jewelry. Coverage can be structured for a specific project and enumerated risks, or offer protection from all perils year-round.
Related read: What is inland marine insurance?
You can purchase inland marine coverage through standalone coverage, or monoline, or add it as an endorsement to a businessowners policy (called a BOP), coverage designed specifically for small businesses. Here are a few specific inland marine insurance coverage examples.
Specific examples of inland marine insurance coverage:
- Rigger’s liability coverage: This is a specific example of inland marine insurance that pertains to contractors. It can cover cargo and equipment while being transported by crane, such as lifting an air conditioning unit onto a roof. A standard general liability policy may not cover this type of risk due to an exclusion. This would be considered an endorsement to a commercial general liability policy.
- Tool and die coverage: Known as a class of machinists in manufacturing, tool and die makers produce specialized tools to produce a custom metal part. Tool and die floater coverage helps protect specialized tooling and molds used in manufacturing. A manufacturer may want this policy when their property is located on the premises of another manufacturer through which they have a contract.
- Installation floaters coverage: This coverage pertains to an inland marine policy that can protect property, typically equipment, being installed by a contractor. This is a unique type of builder’s risk coverage that is often used by contractors.
- Jewelers block coverage: This would be an endorsement to an inland marine policy to help provide coverage for loss or damage to jewelry stock held by retailers, wholesalers, manufacturers and pawn brokers. An example claim could happen in a retail location or a manufacturing facility holding stock before shipping it out to a wholesaler. If you deal in jewelry stock, you’ll want to learn more about jewelers block insurance.
- Accounts receivable coverage: This specialized endorsement helps to cover losses caused by damage to accounts receivable records. It’s pretty self-explanatory, but it can come in handy if such an event occurs, plus it can provide peace of mind.
What does inland marine insurance not cover?
While inland marine policies have expanded their scope greatly since their introduction, they still don’t cover every risk faced by your business. Common exclusions include:
- Company vehicles.
- Neglect or intentional damage.
- Improperly packed items during transit.
- Bodily injury or damages to property (that’s covered by your commercial liability).
It’s also important to distinguish between policies that cover only specific perils enumerated in the policy, such as named perils coverage, and those that cover everything not specifically excluded, all risk, or open perils coverage.
Common perils covered by an inland marine policy include theft, fire, wind, hail and water damage. Some policies may also include coverage for “mysterious disappearances” and accidental drops.
How is inland marine coverage sold?
This largely depends on the insurer and your needs as a company. If your business is performing a one-off or one-time project, you may want to consider a short-term policy (assuming your insurer offers it). If your business’ primary function is transportation or equipment installation, however, you’ll want to work with your agent to obtain comprehensive, ongoing protection. Depending on your needs, you may be able to find lower premiums by purchasing a named perils coverage. The biggest determinant of your inland marine policy rates, as with most insurance coverage, is the value of the items being protected.
What if I need a policy that exceeds my coverage limits?
You may be able to secure an endorsement from your insurer to cover the additional gap in value. This extra cost is typically passed onto the policyholder.
If you still have questions about inland marine insurance, reach out to a UFG agent today to talk about your options. They can help tailor a policy or endorsement to cover your business today.