Inland marine insurance
Inland marine insurance
Inland marine insurance provides coverage for business property, such as products, tools, and equipment, while it’s in transit over land or stored at an off-site location.
What is inland marine insurance coverage?
Inland marine insurance, also called tools and equipment insurance, is a form of property insurance that protects products, tools, and other movable property while in transit or offsite storage. It also covers specialized assets that might be excluded from other policies. If your property is stolen, damaged, or destroyed, inland marine insurance will reimburse you for the loss.
As a "floater" policy, inland marine coverage follows the insured items. If your small business ships valuable assets, transports tools, or owns a truck with specialized equipment, you may need this policy.
Why do you need inland marine insurance?
A standard commercial property insurance policy will only cover business property at the location listed on the policy. Inland marine insurance protects property outside your place of business. It also covers specialized or high-value assets that might be excluded from commercial property insurance.
This coverage is highly recommended for businesses that own custom equipment, transport goods, attend trade shows, or use tools at jobsites. Without it, you could end up paying out of pocket for any losses.
Protect your property in transit from a variety of risks:
- Theft
- Fire
- Wind and hail
- Burst pipes
- Vandalism
What is covered under inland marine insurance?
Inland marine insurance protects business property while it's being transported over land or stored offsite, and certain items that are excluded from other commercial business insurance policies. An inland marine policy covers:
Business property in transit
Equipment, goods, and other portable business property being transported over land are covered by inland marine insurance, not commercial property coverage. This includes:
- Tablets and mobile devices IT consultants take to customers' workplaces
- Medical diagnostic equipment brought to patients' homes by nurses or home health aides
- Tools and equipment general contractors haul between jobsites
Client or customer property in your temporary care
General liability insurance covers accidental damage to a customer's property, but it excludes items in your care, custody, and control. If you temporarily have customer property in your care, you need inland marine insurance.
Two types of inland marine coverage to consider:
- Bailee insurance: Covers assets owned by someone outside your business that are entrusted to your business temporarily, like customer devices in the care of a computer repair business.
- Garage keepers insurance: Protects customer vehicles being stored by your business, namely cars left at an auto detailing shop or auto repair shop.
Items in a fixed but movable location
Inland marine insurance protects movable property that's in a fixed location, such as large, heavy equipment installed inside a truck. This can include steam and hot water extraction units bolted to the floor of a carpet cleaner's van.
Off-site business property storage
Businesses that store property in warehouses, storage units, or other locations outside of their primary location need inland marine insurance. This often includes:
- E-commerce retailers storing inventory in a warehouse
- Telecommunications companies keeping servers, communication towers, and other tech equipment in a storage unit
Rare or high-value items
If your business has fine art, rare collectibles, or other high-value items, it can be difficult to insure these assets with standard insurance policies. Adding inland marine insurance to your commercial property policy will protect your property if it’s lost, damaged, or stolen.
Business equipment that transfers information
Laptops, servers, and other information-transferring equipment transported to different locations are covered by inland marine insurance. For example, if the networking and security equipment a cybersecurity business takes to different customer sites is stolen from a truck, this coverage would pay the replacement costs.
Some businesses may also need electronic data processing insurance for data loss caused by a covered property claim.
How much does inland marine insurance cost?
TechInsurance customers pay an average of $48 per month for inland marine insurance. Annual premiums range from about $150 to more than $4,500.
The cost of inland marine insurance depends on several factors, including the value of the insured property. Premiums are typically higher for scheduled items, which are high-value assets listed individually on the policy.
What factors impact inland marine insurance rates?
When calculating inland marine insurance rates, underwriters analyze many factors, including:
- Type of coverage. You can insure items for their replacement value (the cost of a new item) or their actual cash value (the current value of the used item).
- Coverage limits and deductible. You can save money by choosing lower limits or a higher deductible. However, be sure you have enough coverage for a potential claim, or it could cost you more in the long run.
- Type of property and its value. Your insured property's value will determine how much you pay for coverage, since you'll need sufficient limits to cover a loss. Typically, custom equipment or expensive inventory will cost more to cover.
- Location. Regional factors like crime rates, property values, and exposure to severe weather will impact your insurance rates.
- Claims history. A business with a clean history of claims will generally have lower insurance rates than a company that has filed a claim on its policy.
- Your industry risks. Businesses in industries that move high-value inventory or specialized equipment regularly see higher costs.
There are many ways to find and keep affordable insurance. Our licensed agents can help you secure cost-saving bundles and the right insurance solutions to meet your small business needs.
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Who needs inland marine insurance coverage?
As a specialized form of property insurance, inland marine isn’t necessary for every small business. However, you might need a policy if your business:
- Ships property by land
- Transports high-value property
- Takes tools and equipment to worksites
- Stores property at off-site locations
- Owns a vehicle with equipment installed inside
There are many businesses that carry inland marine insurance, including:
Construction businesses and contractors
Carpenters, handymen, electricians, and other construction companies typically bring a lot of tools and construction equipment to their jobsites. Tools and equipment insurance protects these items as they’re hauled to different locations.
Photographers and videographers
Photographers and videographers haul expensive equipment to different venues and locations. Inland marine insurance would protect specialized cameras, lighting, lenses, and other goods in transit or while they’re being kept in a storage unit.
Cleaning services businesses
House cleaners, window washers, and other cleaning businesses regularly handle their clients’ property. If property damage or broken items are caused by their cleaning services, they would need bailee coverage to handle the loss, as general liability insurance won’t cover third-party items in their care.
IT and technology professionals
IT professionals, including pen testers and app developers, need computers, smart devices, and other specialty equipment to help their clients. Inland marine insurance covers these items while they’re heading to offsite job locations.
Cafe and bar business owners
If a bar or cafe features art from local artists, they need inland marine coverage while the pieces are in its establishment. Bailee insurance will cover property damage or theft of paintings, sculptures, and other artwork on display at their business.
Top professions that need inland marine insurance
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What isn't covered by an inland marine insurance policy?
Although inland marine insurance covers many small business risks, it doesn’t handle everything. Your policy will not cover:
Business vehicles
Commercial auto insurance is required in almost every state for company-owned vehicles. It covers financial losses if a vehicle owned by your business gets into an accident.
If you or an employee drives a personal, rented, or leased vehicle for work, you need hired and non-owned auto insurance (HNOA). Some businesses may also need a mobile equipment endorsement for forklifts and other machinery driven on public roads.
Exclusions in your policy
An open perils policy, or all-risk policy, covers many types of perils, including fires, windstorms, natural disasters, and theft. However, most policies will include a list of exclusions—make sure you read this section carefully so you know what’s covered.
Tools and equipment not listed in your policy
Named perils policies only cover events listed in the policy. This type of coverage typically costs less than an open perils policy due to its limited coverage.
Commonly listed perils include fire, vandalism, and smoke damage.
General liability insurance
Business owner’s policy (BOP)
Workers' compensation insurance
Commercial property insurance
Cyber liability insurance
Errors and omissions insurance
Other frequently asked questions (FAQs) about inland marine insurance
Get answers to frequently asked questions about inland marine insurance.
How did inland marine insurance get its name?
Inland marine insurance is a form of property insurance that evolved from ocean marine insurance, which protects property transported over water. Inland marine insurance speaks to the protection provided to items moving over land.
Is there a difference between tools and equipment coverage vs. inland marine insurance?
There is no difference between tools and equipment coverage and inland marine insurance. It’s also called equipment floater insurance or contractor’s equipment insurance.
This coverage is generally called tools and equipment insurance in construction and installation industries, covering mobile tools and equipment brought to worksites by HVAC installers, roofers, and other contractors.
Miscellaneous tools and equipment coverage is available for items valued under $2,500, and scheduled equipment coverage protects equipment valued over $2,500.
What are the different types of inland marine insurance?
There are many different types of inland marine coverage, each offering a certain form of protection, namely:
- Installation floater insurance covers materials and appliances being transported, stored, or installed at a jobsite, such as roof tiles awaiting installation at a construction site.
- Bailee insurance coverage protects property that belongs to someone else while it's in your care, such as technicians and businesses that repair customer property.
- Motor truck cargo insurance covers goods while they’re being transported by a trucking company.
Property vs. liability insurance: What’s the difference?
Property insurance and liability insurance both protect small businesses against common financial threats. For example:
- Property insurance covers your physical assets and will replace items that are stolen, damaged, or destroyed.
- Liability insurance will pay your legal expenses if a customer, client, or employee sues your business.
There are a variety of liability policies that protect against different types of lawsuits. Our licensed insurance agents can help you determine the best policy for your small business.
How do you purchase inland marine insurance?
You can add inland marine insurance to another property policy, such as a business owner’s policy (BOP) or a commercial package policy (CPP).
A BOP bundles general liability with commercial property insurance and is typically cheaper than purchasing each policy individually.
A CPP is similar to a BOP, but offers more flexible coverage options and is usually purchased by small or midsized businesses with higher risks.
You can compare quotes from top-rated U.S. insurance companies for a business owner’s policy or commercial package policy by filling out TechInsurance’s free online application. Once you pick the right policy, you can typically start coverage and get a certificate of insurance (COI) within 24 hours.
What are the common features of inland marine insurance forms?
Although insurance carriers use different forms for their inland marine insurance policies, they all have similar information, including:
- The type of inland marine insurance purchased
- Named perils covered by your policy, such as fires and windstorms
- Exclusions, like damages related to war or civil unrest
- Your policy limits and deductible
- A coinsurance clause affirming that the limits are appropriate for the value of the insured property
What’s the difference between inland marine insurance and builder’s risk insurance?
A builder's risk insurance policy is a form of inland marine coverage that protects equipment and building materials during a specific construction project, along with the structure in progress.
Inland marine insurance is a broader category that includes many types of property insurance that cover items a standard commercial policy won’t, including your business property at offsite locations and when customer property is in your care.