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Understanding Inland Marine Insurance

Inland marine insurance safeguards your business against loss or damage to equipment, machinery, products, or other property during transportation over land. It encompasses property utilized at job sites, stored in warehouses, or moved by train or truck. This insurance category stems from ocean marine insurance, which specifically covers property in transit over the sea.

Inland marine insurance addresses diverse property needs such as equipment, tools, or items transported over land. Various types cater to specific property types, such as property inland marine insurance covering construction machinery or computer equipment. It becomes crucial when dealing with assets beyond your premises or possessing valuable items not adequately protected by standard property policies.

Coverage Details:
Inland marine insurance shields movable property, like tools and building materials, from damage caused by covered perils. It extends to high-value items not sufficiently covered under commercial property or business owners policies. Coverage may be classified as “all-risks” or named perils, with all-risk policies providing broader protection.

Exclusions:
Common exclusions from inland marine policies include damage by insects, wear and tear, mold, floods, earthquakes, vehicles, stationary property at business premises, and property shipped by sea or air. Specific types of inland marine insurance include contractor’s equipment floater, electronic data processing (EDP) insurance, bailee insurance, accounts receivable insurance, and installation floater.

Limits and Deductibles:
Inland marine policies may feature scheduled limits for individual items or blanket limits for groups of items. These limits, combined with deductibles, determine the coverage’s financial scope. A deductible is the out-of-pocket cost for each claim.

Necessity for Businesses:
Businesses involved in land transportation or equipment relocation, especially away from their premises, benefit from inland marine insurance. It becomes essential for covering valuable assets not adequately addressed by standard commercial property policies.

Origin of the Term:
The term “inland marine” is derived from ocean marine insurance, emphasizing its focus on goods transported over land rather than sea.

Distinct from General Liability:
Inland marine insurance differs from general liability, which addresses claims arising from bodily injury or property damage due to negligence. Inland marine specifically protects movable property from physical damage.

In conclusion, inland marine insurance is a crucial coverage for businesses dealing with property transport over land. Its origins lie in ocean marine insurance, adapting to the unique challenges posed by inland transportation. Understanding its types, coverage details, and suitability for specific business needs is vital for comprehensive risk management.

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