Why Do I Need Inland Marine Insurance?
There are five industries that typically need inland marine insurance: Construction, Transportation/Logistics, Manufacturing/Import/Export, Technology/Communications and Energy.
There are five industries that typically need inland marine insurance: Construction, Transportation/Logistics, Manufacturing/Import/Export, Technology/Communications and Energy.
| Construction |
General Contractors, Subcontractors, Property Owners and Developers, Equipment Rental and Sales |
Builder’s Risk, Installation, Contractor’s Equipment, Rigger Liability, Equipment Rental and Sales, Associated Real and Personal Property |
| Transportation/ Logistics |
Truckers, Warehouse Operators, Third-party Logistics, Wholesalers/Distributors |
Carrier Logistics Choice, Shipper’s Interest, Warehouse Legal Liability, Rolling Stock, Associated Real and Personal Property |
| Manufacturing/ Import/Export |
|
Shipper’s Interest, Installation, Computer Equipment |
| Technology/ Communications |
Data Centers, Local Internet Providers, Broadcasters |
Computer Equipment, Communications Equipment, Associated Real and Personal Property, Towers |
| Energy |
Renewable Energy, Oil and Gas Servicing |
Renewable Energy Including Course of Construction, Contractor’s Equipment, Pipeline Equipment |
Inland marine is also used to cover property that is not typically covered in standard property policies. Some of these items include Bailee's (customer property in your temporary possession), collectibles, exhibitions, fine arts, musical instruments, signs and vending machines.
If your business is covered by a BOP or CPP with general liability and property insurance then you and your tools and equipment are covered, but only at your place of business (or other specified location on your policy). If you do business off-site, in people’s homes or businesses, for example, your tools and equipment are not covered there. If your employee leaves an expensive tool at a job-site and it is stolen, without inland marine, it will not be covered by any insurance. If you ship products to customers or vendors, you want to protect your shipments while in transit. Once it leaves your place of business the shipment is no longer covered by GL and must have inland marine coverage in the event of an incident. Who will pay for lost goods if the truck driving your shipment is in a collision or is the victim of theft while the driver is at a truck stop? Certainly, not your customer or vendor, and delivery services typically have low limits of liability (UPS starts at only $100). This is especially important if you ship high-value products such as computer or medical equipment.
What Does Inland Marine Insurance Cost?
Inland marine coverage costs vary widely depending on the property being covered. Some factors that will affect your premiums include:
- Size of your business.
- How much coverage you want/need.
- What, if any, state requirements you must meet.
The best way to understand the cost and value of inland marine insurance is to talk to an Insurance Shop specialist. We have several experts specializing in inland marine who will work with you to understand how much coverage you need and will get you a fast quote from one of our many carriers.
What are Common Inland Marine Claims?
The two most frequent causes for claims are collisions and cargo theft. Burglary and theft make up 20 percent of all small business claims according to The Hartford. Collisions are fairly common as well and often the cargo being transported is either damaged or late for its delivery—both can be very costly scenarios. In 2011, there were nearly 5.5 million commercial vehicle collisions in the United States, as reported by the U.S. Department of Transportation (DOT). Of those, 270,000 of those collisions represent large trucks (defined by DOT as a truck with a gross vehicle rating greater than 10,000 pounds).
The FBI reports the value of cargo property stolen and recovered every few years. In 2015, the total value of cargo stolen was almost $28 million; only $5 million was recovered. Such cargo included in this data are building materials, computer hardware, garden equipment, merchandise, trailers and tools.
How Can I Reduce my Risk?
The best way to reduce the risks associated with inland marine perils is to work closely with an experienced agent to identify the risks specific to your business and make sure they are covered in your plan. After assuring you’re covered properly, taking simple precautions such as correctly packaging goods, hiring reputable delivery services and keeping checklists of tools and equipment off-site, will help reduce the number of your claims.
Frequently Asked Questions
- Why is it called inland marine insurance if it doesn’t have to do with water?
Before there was inland marine insurance, there was just marine insurance, which covered shipped cargo by sea. When highways and railways became prevalent the marketplace began shipping goods across land via train and truck, raising the need for marine insurance to cover goods inland as well. Thus was born, inland marine insurance.
Builders Risk
Inland Marine
Contractors Liability
Workers Comp
Environmental
