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What is Inland Marine Insurance & Do I Need Coverage?

Depending on the type of business that you are operating, you might require specialized insurance coverage. There are numerous different forms of insurance that are only relevant to particular types of businesses.

One example of this is Inland Marine Insurance. You might be wondering whether this form of insurance could be relevant to your company and protect you from a potential massive financial loss. Let’s explore this option in more detail. 

What Is Inland Marine Insurance?

You might assume that Inland Marine insurance is only relevant to businesses that have assets on the water, however this is not the case. Typically, this form of insurance will cover any property that is transportable or moveable by nature.

Usually, it will be taken out to cover property that needs more extensive coverage than what will be provided by a traditional business owners policy. 

This could be relevant if you are working off-site in the construction business or transporting goods. You might also require this type of insurance if you need to cover contracting equipment.

Other examples of items that can be covered with this insurance includes fine art, solar energy and medical equipment or even clothing that has been left at a dry cleaner. As you can see, it’s a versatile option that could be suitable for a wide range of different businesses. 

You might be wondering why this type of insurance coverage even includes the term “marine.” This is tied back to the history of this form of coverage.

While inland marine insurance can be considered an extension of ocean marine coverage, the days are long past since it was used exclusively for goods that were being shipped by water.

Originally, it was designed to protect companies that lost products due to a ship sinking or even an act of piracy. Over time, business owners began shipping products over land to and from port cities.

It was during this time that the coverage was extended to cover various products being transported on land. 

How Does This Differ From Ocean Marine Insurance? 

Business owners can get confused between ocean marine insurance and inland marine insurance.

The key difference here is that ocean marine insurance protects everything from merchandise to goods and workers as well as passengers that are aboard cargo storage ships or shipping vessels.

These can be used for transportation either domestically or on international routes. It can also be used for protecting other stages of marine shipment including air and land transportation as long as it is connected to marine shipment.

In contrast, Inland Marine Insurance can provide coverage for equipment that is not tied to any form of marine shipment at all. 

Ocean marine insurance could be relevant to a variety of different businesses operating in sectors including manufacturing, distribution, communication and energy construction to name just a few. 

What Does It Cover?

It’s worth noting that Inland Marine Insurance can cover a wide range of different products and pieces of equipment. For instance, you might use this to cover the expense of mobile tools including machinery and hand tools.

In some cases, it will be used to cover musical instruments and the costs of photo equipment. It can even be used to cover animals that belong to others and are being transported while in the custody of a vet.

Larger pieces of equipment can also be covered including cellular communication towers and billboards.

Galleries may also use this insurance to cover art that is being transported to a different gallery while motor companies can utilize it to protect vehicles that are being transported. 

What Businesses Need This Coverage?

As mentioned, this type of insurance coverage could be relevant to a range of different businesses.

If you are working off-site or moving products and goods across a great distance, then you should consider this type of coverage. It could also be relevant to you if you possess a property that is owned by other individuals.

Some key industries where this coverage will be useful include:

  • Construction 
  • Technology 
  • Transportation
  • Equipment

Construction companies tend to use this form of coverage to protect contractor equipment and ensure that cranes and riggers are protected as well. It could also be used for renewable energy equipment that will be installed at a particular site. 

Tech companies also use this form of insurance to protect renewable energy equipment that can be utilized for both research and development. It can also be used to cover the cost of electronic equipment. 

Of course, transport businesses are one of the main users of this form of insurance. It can help protect a shipper’s interest or warehouse and logistics companies. It will guarantee that any goods being transported are financially secure. 

Alternatively, it may be useful to provide coverage that is owned by others but often in the possession of the policyholder. This type of coverage will provide full financial protection, even if the equipment is being held off-site. 

Other businesses will find this insurance option useful and relevant, too.

This includes businesses that are transporting fine arts, signs, vending machines and collectibles. Ultimately, if you are transporting expensive goods, then this could be an insurance option worth exploring. 

How To Choose The Right Insurance Provider 

If you are interested in this type of coverage and you think it could be relevant to your business then it’s important to select the right policy from the right insurance provider

You need to explore the market and ensure that you are getting the best rate that provides the full extensive coverage that you need. It’s worth selecting a business that has a significant level of experience in providing this coverage to companies on the market. 

We hope this helps you understand the importance of inland marine insurance and whether it could be a suitable option for your business.

Be aware if you are transporting expensive items or equipment by land, then this could definitely be a relevant solution for your business.