When you move equipment or product outside of your facility, or in logistics, freight, or as a function of internal operations, I’m sure your commercial insurance agent has discussed an Inland Marine policy with you. If you’re in middle America, I’m sure having “marine” as the title of any insurance policy you carry may seem a bit odd, but stick with me for a moment. While it may seem like a curious title, Inland Marine is a type of property insurance to cover your assets that are in transit or are transportable.
Contractors and Inland Marine
Consider your tractors, heavy machinery, costly power tools, generators—equipment that you transport from one job site to another. These pieces of equipment will be included in an inland marine insurance policy, even once they’re transported to the job site. The key distinguisher for coverage is whether or not the equipment in question moves from location to location to perform a job function. For example: landscaping equipment like skid-steers, mowers, leaf blowers, etc. are covered, as are trenching machines, generators, backhoes, compressors, jack hammers, and the like are covered in transit, and sometimes may be covered while stored off-site (read your specific policy for these details). In short, if it’s movable equipment or raw materials used for a job on-site, Inland Marine policies will cover it.
Freight and Cargo
Inland Marine policies may also cover goods in transit to a client’s business or residence against accidental damage. This can include everything from industrial equipment to exhibition pieces such as sculptures and fine art, even cooking equipment and raw ingredients for food preparation at events. While the policy doesn’t cover the truck or trailer itself, it does cover the goods carried on the truck from one location to the destination.
What Doesn’t Inland Marine Insurance Cover?
It does feel rather comprehensive, right? Well, not so fast. Inland Marine policies aren’t designed to cover everything in perpetuity just because it was once transported. For example, a machine shop’s CNC machine would be covered in transit from the manufacturer to the shop, however once it’s delivered, it’s considered stationary property and would no longer meet the criteria—the same applies for damage incurred prior to transportation. Also, while said machine is delivered on a truck, the truck (and trailer) itself is not covered under this policy. While we’re on the topic of logistics, transportation by sea or air are not covered by Inland Marine policies, so if you’re transporting internationally or over a body of water, be prepared to secure different policies depending on what leg of the trip the goods are on.
How Much Do Policies Cost?
Policy premiums vary based on the type of property being transported, however the range can be from as little as $500 annually to more than $10,000 for high-value assets. We recommend speaking with an insurance agent to get an accurate quote based on your particular circumstances. If you have questions about Inland Marine or other commercial insurance products for your business, please contact one of our insurance agents today!