By MARIANNE BONNER Updated September 27, 2023
Reviewed by ANDY SMITH
Fact checked by SUZANNE KVILHAUG
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Inland marine insurance protects your business from loss or damage to equipment, machinery, products, or other property transported over land. It covers property you use at a job site, store at a warehouse, or move from place to place by train or truck. Inland marine is an offshoot of ocean marine insurance, which covers property transported by sea.
Inland marine insurance covers equipment, tools, and other property you use at a job site, store at a warehouse, or move over land.
Each type of inland marine insurance is designed to cover a specific type of property.
Property inland marine insurance can include property such as construction machinery or computer equipment.
Inland marine insurance is an offshoot of ocean marine insurance, which covers property transported by sea.
You should consider buying inland marine insurance if you ship or use property away from your premises or own valuable items that aren’t adequately covered by your property policy.
What Does Inland Marine Insurance Cover?
Inland marine insurance covers damage by a covered peril to movable property like tools, equipment, and building materials. It also covers high-value items that aren’t adequately insured (or aren’t covered at all) under your commercial property or business owners policy. An example is a bulldozer valued at $150,000 that your business uses at construction sites.
Inland marine insurance may cover “all-risks” or named perils. An all-risk policy covers damage caused by any peril not specifically excluded. It’s broader than a named perils policy, which covers only the perils listed in the policy.
Inland marine policies also vary in how they value damaged or destroyed property. Some policies pay losses based on the replacement value of the property at current prices without considering depreciation. Others base the payment on the property’s actual cash value, which includes a deduction for depreciation.
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Note
Commercial property policies mainly cover property at your business premises. Most provide little or no coverage for property at other locations, such as job sites.
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What Inland Marine Insurance Doesn’t Cover
While inland marine policies vary, many exclude damage caused by insects, wear and tear, mold, floods, and earthquake. Many also exclude vehicles, stationary property that remains at your business premises (like desks and cabinets), property shipped by sea or air, and property damage that occurs before an item is shipped.
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Special Types of Inland Marine Insurance
There are many kinds of inland marine insurance, each designed to cover a specific type of property. Here are some examples.
Contractor’s equipment floater: Covers loss, damage, or theft of a contractor’s equipment or tools wherever the loss occurs, including at the contractor’s business premises, at a job site, or while in transit.
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Electronic data processing (EDP) insurance: Protects businesses against loss or damage to desktop computers, mainframes, laptops, tablets, and other equipment used to process or store data. Policies cover damage caused by a range of perils, including fire, floods, theft, and electrical disturbances.
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Bailee insurance: Covers your business’ liability for damage to customers’ property in your care for service, repair, storage. The term “bailee” means custodian. Businesses that need this coverage include dry cleaners, computer repair services, and pet boarding operators.
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Accounts receivable insurance: Protects your business from financial losses caused by damage or destruction of your accounts receivable records by a covered peril or your customers’ failure to pay invoices.
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Installation floater: Protects contractors against theft, damage, or destruction by a covered peril of equipment, materials, or supplies while in transit or awaiting installation at a job site.