What is Inland Marine Insurance and Why Your Business Might Need It

Despite its name, inland marine insurance is not limited to boats, trains, or shipping companies. It is a flexible type of business insurance designed to cover certain property, tools, and equipment while they are being transported, used away from your primary location, or temporarily stored elsewhere.

Here is a closer look at what inland marine insurance can cover, when it may apply, and which businesses may need it.

What Does Inland Marine Insurance Cover?

Inland marine insurance is designed to protect business property that does not remain in one fixed location. This may include tools, equipment, materials, or other valuable assets that travel between locations or are regularly used offsite.

Common examples include:

1. Movable Property: Contractors may transport tools and equipment between job sites, while photographers may bring cameras, lighting equipment, and other gear to different venues. Inland marine insurance may cover certain property while it is in transit or being used away from the business's primary location.

2. Property Not Covered by Standard Policies: A commercial property policy generally focuses on property located at the business premises listed in the policy. Inland marine coverage may help address gaps involving property that travels, is temporarily stored elsewhere, or is used at changing locations.

How and When Does Inland Marine Insurance Apply to Losses?

Inland marine coverage may apply to losses that are not covered by a standard commercial property policy, including losses involving property:

• During Transportation: If covered equipment, materials, or products are damaged while being transported to a job site, client location, or another business location, inland marine insurance may help pay for the loss.

• At Remote Job Sites: Contractors, landscapers, photographers, and other businesses frequently use valuable property at locations they do not own. Inland marine coverage may protect eligible items while they are away from the primary business premises.

• In Temporary Storage: If business property must be stored temporarily at a warehouse, job site, event venue, or another location, inland marine insurance may cover certain risks during that period.

Inland marine policies are often tailored to the type of property being insured. Covered losses, limits, deductibles, and exclusions will vary by policy. Depending on the coverage, protected losses may include theft, accidental damage, or damage caused by certain weather events.

What Inland Marine Insurance Doesn't Cover

Although inland marine insurance is flexible, it does not cover every type of property damage. Common limitations may include:

• Routine Wear and Tear: Damage caused by aging, gradual deterioration, or ordinary use is generally excluded.

• Stationary Property: Property that normally remains at the business's primary location may be better covered by a commercial property policy.

Other exclusions may apply depending on the type of property, how it is transported or stored, and the specific policy purchased.

Why a Business May Need Inland Marine Insurance

Many businesses rely on tools, equipment, materials, or other property that regularly leaves their primary location. A commercial property policy may not provide the same protection once those items are in transit, temporarily stored elsewhere, or being used at a job site or client location.

Inland marine insurance can help protect property such as a contractor's tools, a photographer's camera equipment, or portable medical equipment while it is away from the business premises.

Because coverage varies, businesses should review where their property is used, how often it is transported, and whether their existing insurance follows that property when it leaves the primary location. An insurance professional can help identify potential gaps and determine whether inland marine coverage is appropriate.