The Ultimate Guide to Inland Marine Insurance
by Mike Viola
When you think of inland marine coverage, you probably assume you don’t need it because you associate the word “marine” with water. The term “inland” further adds to the confusion on what exactly this insurance covers.
Inland marine insurance covers a variety of issues. For example, you need this insurance for equipment that leaves your company’s property. Simply put, items that need to be moved from one point to another need inland marine insurance.
Why’s it called Inland Marine Insurance?
In the 1600s, cargo was transported via water. Marine insurance was thus designed to cover businessmen from sea losses. However, as cargo began to move over land, insurance companies began to cover those goods as well under the same policy. Although inland is not the same as the sea, the name remains.
What’s Inland Marine Insurance Coverage?
According to the Insurance Information Institute (III), inland marine insurance is a policy that covers high-value items or those not covered by property coverage in a standard/normal business owner’s policy. This coverage is important especially if you ship, transport, or rent contractors equipment regularly.
You can buy it as an add-on to an existing policy or as a separate policy. Talk to a broker such as Ascinsure Specialty Risk to see which options are best suited for your business. It’s essential to the health of your business that you’re insured properly!
What Does Inland Marine Insurance Actually Cover?
Inland marine insurance covers a wide variety of items. The majority of this coverage focuses on products on land although it can still cover products on water as well.
Modern inland marine insurance comes in four major policies:
- Buildings under construction/builder’s risk insurance
- Heavy construction equipment
- Computer equipment and data or any other equipment used to transfer information
- Property in transit
You can also use it to cover handling expensive items. For example:
- Jewelers block
- Furriers block
- Exhibition floaters
- Works of fine art
- Equipment dealerships
- Schools and other institutions expensive musical instruments
- Expensive cameras used by governments and other agencies
- Bailee’s coverage-when you accept others property for cleaning, repair etc.
Do You Need Inland Marine Insurance Coverage?
First, you need to think about the nature of your business. A reason you might need this coverage is that the Business Owners Policy (BOP) or Commercial Package Policy (CPP) coverage you have may not be enough. These policies have coverage that only cater to property housed at specific locations and not property that can move or is in transit.
If your business frequently ships products or equipment, you should get inland marine insurance coverage. Rental equipment businesses are exposed to high levels of risk like theft and damage to their equipment. Protect yourself, your goods and your business by making sure you’re covered.
Inland marine insurance isn’t limited to shippers, transporters, or rental equipment businesses. Like stated before, it offers a wide range of coverage for other areas. It’s important to know how your business is classified. This will help you know whether you fall into the category of those that can be covered by inland marine insurance or not.
An insurance professional can help you determine whether inland marine insurance makes sense for you. Niche specialists like Ascinsure can help you assess your risks and prescribe the best coverage for your business.
Inland Marine Insurance Benefits
The real benefit of any insurance policy is to reduce your financial risks. Paying a little for insurance now may save you a lot later.
Inland marine insurance makes sure that:
- You get financial support when the unexpected happens
- You don’t wind up losing your business because of unsustainable losses
- You do not experience prolonged downtimes in your business due to loss
- Your risks are managed for you even without a risk management team
An insurance contract has many characteristics. Deciding what kind of coverage you need as well as limits and premiums for the coverage can be confusing. Ascinsure has been helping people all over the US make smart choices when it comes to insurance options.
Our Inland Marine specialists have over three decades of experience and provide you with the highest quality options. Ascinsure insures cranes,scaffold, rental equipment & party goods, and the human services industry. We are more than willing to answer your questions and help you review the coverage you already have.
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