Any business that requires the use of specialized equipment should have inland marine insurance. This insurance covers equipment, products, and materials that are transported overland via truck or train. It also covers warehoused items. Inland marine insurance is recommended because cargo theft and collisions are the top reasons for equipment loss.
What Type of Businesses Use Inland Marine Insurance?
Not all industries need this type of coverage. But some that do, include: construction, medical care, communications, renewable energy, transportation and logistics, scientific research, museums and galleries, and fine arts. In short, any business that commonly uses transportable specialized equipment or property can benefit from inland marine insurance.
Here’s a quick checklist to determine if a business can benefit from this coverage. Answering yes to any of these questions means that inland marine coverage can possibly benefit the business.
1. Is the specialized equipment often moved from place to place?
2. Is the specialized equipment often taken off-premises and used in a new location?
3. Does the business require property to be moved to temporary locations for use?
4. Is loss of equipment a possibility that’s not covered by a standard property policy?
Expensive losses and accidents can ruin a business. Inland marine insurance can prevent this from happening.
What Exactly is Inland Marine Insurance?
The name is a bit misleading, as it sounds like it deals with ocean travel. But this type of policy covers incidents that occur on land. In the beginning, marine coverage was offered to cover cargo items shipped on a boat. But insurers who offered marine coverage saw the need to also protect items shipped via truck or train. These insurers expanded coverage to include items shipped on land, and added the word “inland” to signify the difference.
Types of Coverage
Cargo coverage protects equipment transported from one place to another. The equipment is protected against events that cause damages or a total loss. Transport companies generally invest in this type of coverage. Builder’s risk coverage protects construction equipment and materials during construction jobs. This coverage is good during new projects and renovations.
Bailee coverage is a favorite among dry cleaners and jewelers. This type of policy protects against damages or losses to equipment or belongings left in the care of a business. Any business that requires dealing with customers’ belongings can possibly use this coverage.
And high-value item coverage is for businesses that deal with valuable items not usually covered by a standard insurance policy. This is often used by museums that deal with displaying and transporting priceless works of art.
How Does Inland Marine Insurance Coverage Work?
The best course of action is to contact an experienced insurance agent. The agent can help any business determine if coverage is right for them. Once the agent has specific details about the business, then it will become clear about the types of risks involved. The insurer will then determine which type of coverage is best, and set the monthly premium payment amount. Once a business is covered, they’ll simply file a claim when an incident occurs.