What Is Inland Marine Insurance?

Inland marine insurance protects your business from loss or damage to equipment, machinery, products, or other property transported over land. It covers property you use at a job site, store at a warehouse, or move from place to place by train or truck. Inland marine is an offshoot of ocean marine insurance, which covers property transported by sea.

Inland marine insurance covers damage by a covered peril to movable property like tools, equipment, and building materials. It also covers high-value items that aren’t adequately insured (or aren’t covered at all) under your commercial property or business owners policy. An example is a bulldozer valued at $150,000 that your business uses at construction sites.

Inland marine insurance may cover “all-risks” or named perils. An all-risk policy covers damage caused by any peril not specifically excluded. It’s broader than a named perils policy, which covers only the perils listed in the policy.

Inland marine policies also vary in how they value damaged or destroyed property. Some policies pay losses based on the replacement value of the property at current prices without considering depreciation. Others base the payment on the property’s actual cash value, which includes a deduction for depreciation.

Commercial property policies mainly cover property at your business premises. Most provide little or no coverage for property at other locations, such as job sites.

While inland marine policies vary, many exclude damage caused by insects, wear and tear, mold, floods, and earthquake. Many also exclude vehicles, stationary property that remains at your business premises (like desks and cabinets), property shipped by sea or air, and property damage that occurs before an item is shipped.

There are many kinds of inland marine insurance, each designed to cover a specific type of property. Here are some examples.

Because inland marine insurance covers property that moves from place to place, it’s often called a floater.

An inland marine policy may include scheduled limits, blanket limits, or a combination of the two. A scheduled limit applies to a single item while a blanket limit applies to a group of items. When you buy inland marine insurance, you might choose specific limits for your most valuable items and a blanket limit for your remaining property.

For instance, you might select a $150,000 specific limit for your new bulldozer and a $35,000 blanket limit for your tools and other property. When a loss occurs, the most your insurer will pay is the limit (scheduled or blanket) that applies to the damaged property.

Most inland marine policies include a deductible, such as $1,000 or $2,500. The deductible is your out-of-pocket cost for each claim.

Your business may need inland marine insurance if you ship property over land by train or truck or if you transport equipment to jobs sites. You also may need inland marine insurance to cover property that isn’t adequately covered (or not covered at all) under your commercial property policy.

For instance, while many commercial property policies cover computers, they exclude damage caused by power failures and equipment breakdown.

Inland marine insurance gets its name from ocean marine insurance, from which it’s derived. While ocean marine insurance covers goods transported by sea, inland marine insurance covers goods transported by truck or train. Inland marine insurance protects businesses from loss or damage to property as it travels over land from its place of origin to its final destination.

No, inland marine and general liability insurance aren’t the same thing. Inland marine is a type of property insurance. It protects your business from financial losses caused by physical damage to equipment, tools, and other movable property. General liability insurance covers claims by your customers or other third parties for bodily injury or property damage arising from accidents caused by your negligence.

Inland marine insurance covers materials, equipment, products, and other property transported over land. It evolved from ocean marine insurance, which covers property transported by sea.

There are many types of inland marine insurance, and the kind you need depends on the property you want to insure. For instance, you’ll need a contractor’s equipment floater to insure a bulldozer and accounts receivable insurance to cover your accounts receivable records.

Most commercial property policies provide little or no coverage for movable property. If you transport property away from your business premises, you should consider buying inland marine insurance.

WRC Agency. "Inland Marine."

Insureon. "Where Your Business Property Is and Isn’t Covered, According to Your Insurance."

Insureon. "What Is Inland Marine Insurance?"

Insureon. "Contractor’s Tools and Equipment Insurance for Construction Businesses."

Insureon. "Electronic Data Processing Insurance."

Insureon. "Bailee Coverage."

Insureon. "Accounts Receivable Insurance."

Travelers. "Inland Marine Installation Floater Insurance."

New Hampshire Insurance. "Contractors: Protect Your Valuable Tools & Equipment with NH Inland Marine Insurance."

Huttenlocher Group. "Common Commercial Property Insurance Exclusions."

New Empire Insurance Services. "What Is Inland Marine Insurance?"