If your business has operations that involve your property or the property of someone else that’s valuable and you’ll like to have protected while in transit, then the Inland Marine Insurance policy is the best option for you. This article discusses salient things you need to know about this particular insurance coverage.
What is Inland Marine Insurance?
Inland Marine Insurance is a type of insurance coverage for property, the value of goods, and other materials that are movable or being transported on land by trucks, vans, and or trains.
While you might be wondering what “marine” has to do with land – Inland Marine is derived from Ocean Marine, one of the earliest forms of insurance coverage. So it is when goods of significant value are being transported over water primarily by ships. As marine insurance continued to expand as a concept, Inland Marine was created. However, it doesn’t have anything to do with water.
Why is Inland Marine Insurance Important to Your Business?
During operations, accidents can occur that may damage your goods and cost you lots of money. Inland marine insurance provides you with something to fall back in the event of a loss to your property or other properties in your care. Instead of bearing the loss alone, your policy stands in.
What Types of Businesses Need Inland Marine Insurance?
- If your business deals with long-distance transportation or helps to store goods and equipment for other people, haul tools, borrow or rent equipment, then you should consider getting the coverage.
- Companies that ship goods on land to food/catering truck services, as well as contractors or construction companies, also need inland marine insurance.
- Business owners who handle exhibitions and fairs and operate equipment for special events can also sign up for this coverage as long as they can estimate the value of their property.
What does Inland Marine Insurance Cover?
Inland Marine insurance protects and covers theft, loss, accident, or vandalism of movable property as well as property in domestic transit.
Inland marine insurance can provide specific coverage by industry to protect against different kinds of harm. It can range from technology and communication properties, e.g., cables, computers, fax machines, electronic devices, arty work, and jewelry used for exhibitions, medical supplies, and equipment.
What Inland Marine Insurance does not cover
- It doesn’t cover the vehicle used to transport the goods. You’ll need commercial auto insurance.
- It also doesn’t cover stationary property, natural wear, and tear, flood damage, goods transported by sea or air, or property damaged before shipment.
Factors That Determine the Cost of Inland Marine Insurance
The cost of the coverage varies from business to business, but they are a few factors that can be used to determine the total cost of the policy, and they include:
- Nature of property
- Type of business
- Size of the business
- Governmental requirements
- Limits of the coverage
- Value of property
Learn more about our Goods in Transit Insurance Coverage.
Related Insurance Coverages
If you have gotten the inland insurance and you want to protect the rest of your business further, you can consider other options such as:
Builders risk insurance
This covers a person or building materials against loss or damage during the cause of construction.
Commercial Property Insurance
This benefits some who lease properties ranging from offices, warehouses, or other equipment. In addition, the policy covers the property in the event of a mishap.
Find out more about our property insurance plans.
Bottom Line
Inland marine insurance is useful for you if you deal with huge contract jobs or big businesses that have goods that will be in transit for an extended period. Be sure to talk to your insurance broker, so you have coverage for that. Understand the entire policy to make sure it covers all that you need to be covered. You can also first inquire if you need this specific cover, then they will help you work through your needs.
Here at Leadway, we have a range of marine insurance products to cover your vessel, fleet, goods, etc against physical damage while in transit. Looking to do more in-depth research to find the one that works for you, request a callback today, and our team of financial advisors will reach out to you.
