What does inland marine insurance cover

An Allstate agent can answer coverage questions and help you find ways to protect what matters most. Inland marine insurance helps pay to repair or replace portable business property that is damaged by a covered peril listed in your policy.

Perils that may be covered by inland marine insurance may include: Theft Fire Wind Hail Water damage In addition to the above, an inland marine insurance policy may provide additional coverage for specific situations.

This may include protection for:. Read your policy or check with your agent to make sure you understand what perils are and are not covered by your inland marine insurance. The types of property typically covered by inland marine insurance include a wide array of specialty equipment and materials used for business. For example:. Inland marine insurance has a deductible , or the amount you pay out of pocket toward a covered claim.

Your deductible is listed in your policy, and you may be able to select the deductible that works best for your business when you buy coverage. Inland marine insurance also has a coverage limit. If you have a covered claim, your insurer will only reimburse you up to the limit stated in your policy.

Reimbursement for business property damaged in a covered claim may be paid on an actual cash value basis or on a replacement cost basis. With actual cash value coverage, you would be reimbursed for damaged property's depreciated value. With replacement cost coverage, you would be reimbursed for the cost to replace the damaged property at today's prices. Read your policy or check with your agent to see how losses are reimbursed by your inland marine coverage. Finally, it's important to choose coverage limits that accurately reflect the value of your portable business property.

Some inland marine policies include a coinsurance clause that could penalize you for claiming a loss that exceeds your coverage limits by a certain percentage.

Businesses with moveable property may benefit from inland marine insurance. It's important to determine if some of your business dealings fall outside of the coverage provided by your existing commercial insurance. For example, you may have coverage through your business owners insurance policy for the cameras, lighting and other equipment in your photography studio.

However, this equipment may not be covered if it is being shipped to another location for a shoot. What is Inland Marine Insurance? Topics: Inland Marine Share:. So what does inland marine insurance cover and how can agents help their clients understand how it protects their business from liability? What is Commercial Inland Marine Insurance?

What Does it Cover? In general, commercial Inland Marine insurance covers any property that is movable, transportable, or involved in transferring information. Property in transit like construction tools and supplies Computer equipment, including servers and laptops Communication equipment and networking tools Scientific and medical equipment What are Inland Marine Risks? While it was developed to protect against losses while shipping goods, Inland Marine insurance may protect your business against a myriad of other property damage risks.

Exhibition and fine art coverage: If a valuable piece of artwork is on display, in transit, or on loan, exhibition and fine art coverage is designed to protect it. Motor truck cargo coverage: When your business is transporting goods or delivering them to a client, this coverage can protect goods from damage.

A Brief History of Inland Marine Insurance When business insurance was in its infancy, Ocean Marine insurance covered ships from losses acquired on their way to port.

Most business owners with tangible assets should already have a commercial property insurance policy. Commercial property insurance covers assets that are stored at a stationary business location. For example, if someone vandalizes your shop window or a fire burns down your back office, commercial property insurance would come to your rescue. Similarly, if you have certain highly valuable or unique types of property, traditional property insurance might have an exclusion.

Inland marine coverage is important for the following types of businesses:. Contractors and freelancers who travel between job sites. Business owners who attend trade shows, exhibitions and conventions. Businesses that ship raw materials or finished goods over land. When the property goes beyond that boundary, inland marine policies kick in. In fact, if you transport products over water domestically or internationally, you actually need ocean marine insurance.

Businesses that transport property by air would need air cargo insurance. Some insurers offer a comprehensive commercial cargo policy that insures against all three types of transit — land, sea and air. Inland marine insurance only protects property that is transported over land or stored on land away from your ordinary business premises. Inland marine insurance can typically be purchased as a stand-alone policy or added as an endorsement to a traditional property policy or business owner's policy , or BOP.

The specific coverages can vary based on your insurer and the type of business you have. In general, inland marine insurance covers the following:. Property in transit: This is property that you transport over land from one location to another. Property stored off-site: This includes property that you keep at a warehouse or storage facility.

Property on movable vehicles: For example, an inland marine policy would cover the cooking equipment and raw ingredients that are stored in a food truck. Property that provides the means of transportation: Inland marine insurance can cover businesses that own bridges, roads or communication towers. In addition to the above, inland marine policies can provide custom coverage for specialized property.

For example, art dealers and galleries need to store art that belongs to other people. Veterinarians might need to transport live animals to a clinic. Inland marine insurance can provide coverage in all of these situations. Inland marine insurance covers losses resulting from the same events that trigger standard property insurance. For example, most inland marine policies cover fires, certain types of weather damage, vandalism and theft.

Normally, the following are excluded from inland marine insurance:. Stationary property: This is covered by standard commercial property insurance. Vehicles: To cover vehicles that you use for business purposes, you need to purchase commercial auto insurance. However, inland marine insurance can protect the contents inside your vehicle. Earthquake and flood damage: Businesses in earthquake or flood zones should purchase separate commercial flood insurance or commercial earthquake insurance.

Property transported by sea or air: In these cases, you would need ocean marine insurance or air cargo insurance, respectively. Property damaged before shipment: Inland marine insurance typically only covers damage or loss that occurs in transit unless you have a specialized policy such as an art dealer policy.