As a business owner, you face many considerations about running your company – one of the biggest being that you can provide for yourself, your employees, and your customers. This is why you get business insurance; you have financial security in case something were to go awry.
There are many different types of business insurance, including the lesser known but potentially beneficial inland marine insurance. Inland marine insurance could be an important part of your business insurance portfolio – but it might not cover all that you think it does. Let’s get into what inland marine insurance is and generally covers, as well as five things inland marine insurance does NOT cover.
What is Inland Marine Insurance?
Contrary to what the name implies, inland marine insurance provides coverage for products, materials, and equipment when transported over land, such as by vehicles or trains, or when they are housed in a third party facility.
You can usually add an inland marine insurance policy to your existing business insurance policy or purchase it separately through a different company. It tends to be pretty affordable too, averaging between $2,000 and $3,000 per year.
What does Inland Marine Insurance Cover?
Inland marine insurance is a specialized type of insurance that is suitable for some businesses more than others. Those specializing in building design, construction, food and beverage, landscaping, and other sectors might benefit the most. Coverage typically includes:
- Property in transit
- Property in your temporary care
- Moveable property in a fixed location
- Unique or valuable property
If one or all of these qualities apply to your business, inland marine insurance could be a valuable addition to your insurance portfolio. A benefit of inland marine insurance is that it will cover things that some common commercial property insurance policies will not.
What Does Inland Marine Insurance Not Cover?
While inland marine insurance may be a great option for your business, it doesn’t cover everything. Because it is specialized, there are limitations. Here are some of the things inland marine insurance won’t cover:
Vehicles aren’t covered under an inland marine insurance policy. If you need vehicle coverage for the business use of car, you may need to opt for commercial auto insurance or a hired and non-owned policy.
- Stationary Property
Stationary property, or property that doesn’t move (or is never intended to move), isn’t covered by this type of policy. If this is the type of coverage you need, you may want to look for an umbrella insurance policy.
- Earthquakes & Flood Damage
As with many insurance policies, damage from natural disasters like earthquakes and floods aren’t covered with inland marine insurance. It may be best to monitor weather situations before shipment and during storage, if possible, to prevent damage.
- Property Transported by Sea or Air
Inland marine insurance is intended for land-based property only. Property transported by sea or air is not covered and requires a special type of insurance called freight and cargo insurance. Freight and cargo insurance can be purchased by the buyer or the sender.
- Property Damaged Before Shipment
For items you are shipping, it is worth noting that if the property is damaged before shipment, such as during the loading process, it will not be covered.
Is Inland Marine Insurance Worth It?
Depending on your type of business, inland marine insurance may be a wise investment. If you have equipment that has a high value or expensive goods that are being transported over land, you may want to consider adding this type of policy.
The last thing you’d want for your business is to lose money when applicable coverage is readily available. Inland marine insurance could be a more affordable way to cover your expensive goods and equipment.
If you are considering getting inland marine insurance or are curious about the other policies available to protect the well-being of your business, give Independent Insurance Associates a call! Our agents will assist you in navigating available policies and help you get the coverage your business needs.