Inland Marine Insurance
Protect your equipment, tools, and property wherever your business takes you. Coverage that moves with your assets.
Why Is It Called "Inland Marine" Insurance?
Despite the name, inland marine insurance has nothing to do with water! The term dates back to the early days of insurance when "marine" insurance covered goods transported by ship. As commerce expanded overland via railroads and trucks, insurers extended marine-style coverage to goods transported "inland"—hence "inland marine." Today, it covers any property that moves, is mobile, or requires specialized coverage beyond standard commercial property policies.
What is Inland Marine Insurance?
Inland marine insurance is a specialized type of commercial insurance that covers property that is mobile, in transit, or requires broader coverage than standard commercial property policies provide. It's designed to protect assets that move between locations or are used at multiple sites.
Standard commercial property insurance typically covers property only at a specified location. If your equipment, tools, or goods travel between job sites, are transported by vehicle, or are stored at customer locations, you likely have significant coverage gaps without inland marine protection.
Inland marine policies come in two forms:
- Filed Classes: Standardized forms for common coverage types (contractors equipment, computer equipment, etc.)
- Non-Filed Classes: Custom policies for unique or specialized property (fine arts, valuable papers, etc.)
Property Categories Covered
Goods being shipped or transported between locations, including finished products, raw materials, and inventory
Customer property in your care, custody, or control for service, storage, or processing
Contractors' equipment, tools, and machinery used at multiple job sites
Computer systems, telecommunications equipment, and technology infrastructure
Common Types of Inland Marine Coverage
Inland marine insurance includes many specialized "floater" policies designed for specific types of property and industries:
Contractors Equipment
Covers tools, machinery, and equipment used by contractors at various job sites—bulldozers, scaffolding, generators, hand tools, and more.
Electronic Data Processing (EDP)
Protects computers, servers, laptops, software, and data from physical damage, theft, and sometimes data restoration costs.
Installation Floater
Covers materials and equipment during installation at a customer's location until the job is complete and accepted.
Builders Risk
Covers buildings under construction, including materials, equipment, and fixtures until the project is completed.
Fine Arts Floater
Specialized coverage for artwork, antiques, collectibles, and valuable decorative items at business locations.
Valuable Papers & Records
Covers the cost to research and reconstruct important business documents, blueprints, maps, and records if destroyed.
Motor Truck Cargo
Covers goods and merchandise while being transported by motor vehicle (for trucking and delivery companies).
Medical Equipment
Covers diagnostic equipment, mobile medical devices, and healthcare technology used at various locations.
Camera & Film Equipment
Coverage for professional photography and video equipment, including cameras, lighting, and audio gear.
Protect Your Mobile Business Assets
Don't leave your equipment unprotected between job sites. Get a customized inland marine quote today.
What Does Inland Marine Insurance Cover?
Typically Covered Perils
- Theft & Burglary
Equipment stolen from job sites, vehicles, or storage locations
- Fire & Smoke Damage
Property damaged by fire regardless of location
- Vandalism & Malicious Mischief
Intentional damage to your equipment or property
- Collision & Overturn
Equipment damaged during transportation or movement
- Weather Events
Wind, hail, lightning, and other weather-related damage
- Water Damage
Damage from burst pipes, roof leaks (often excluding flood)
Common Exclusions
- Normal Wear & Tear
Gradual deterioration from regular use over time
- Mechanical Breakdown
Equipment failure not caused by a covered peril (unless endorsed)
- Flood & Earthquake
Usually excluded unless specifically added by endorsement
- Mysterious Disappearance
Property that goes missing without evidence of theft
- Intentional Acts
Damage caused deliberately by you or your employees
- War & Nuclear Hazard
Standard exclusions for acts of war and nuclear events
Industries That Need Inland Marine Insurance
If your business involves mobile equipment, property in transit, or assets that travel between locations, you likely need inland marine coverage:
Construction & Contractors
Heavy machinery, tools, scaffolding, generators
Technology & IT Services
Computers, servers, networking equipment, mobile devices
Medical & Healthcare
Diagnostic equipment, mobile units, medical devices
Photography & Film
Cameras, lighting, audio/video equipment
Trucking & Logistics
Cargo, freight, goods in transit
Manufacturing
Components, finished goods, materials in transit
Jewelry & Fine Art
Valuable merchandise, art, collectibles
Events & Entertainment
Sound systems, lighting rigs, staging equipment
HVAC & Plumbing
Tools, testing equipment, installation materials
Inland Marine vs. Commercial Property Insurance
Understanding when you need inland marine coverage versus standard commercial property insurance is critical to avoiding coverage gaps:
| Feature | Commercial Property | Inland Marine |
|---|---|---|
| Location Coverage | Specific scheduled locations only | Anywhere property is located |
| Property in Transit | Limited or no coverage | Full transit coverage |
| Equipment at Job Sites | Usually excluded or limited | Covered at any job site |
| Valuation Method | ACV or stated amount | Often replacement cost |
| Coverage Form | Named perils or special | Typically all-risk/special |
How Much Does Inland Marine Insurance Cost?
Inland marine insurance is typically priced as a percentage of the total value of covered property. Rates vary significantly based on the type of property, industry risk, deductibles, and coverage limits.
Typical Rate Ranges
Example: $50,000 in equipment at 2% = ~$1,000/year
Minimum Premiums Apply
Most insurers have minimum annual premiums of $250-$500, regardless of the value of property covered. Small operations may pay the minimum rather than a calculated rate.
Factors That Affect Your Premium
Type of Property
Heavy equipment costs more to insure than hand tools; high-tech equipment more than basic machinery
Total Value Covered
Higher limits mean higher premiums, but per-dollar cost often decreases with scale
Deductible Amount
Higher deductibles reduce premiums; choose based on your risk tolerance and cash reserves
Geographic Area
High-crime areas and regions prone to weather events may have higher rates
Security Measures
GPS tracking, locked storage, alarm systems can qualify for discounts
Real-World Claim Scenarios
These scenarios show how inland marine insurance protects businesses from common losses:
Contractor's Tools Stolen
An HVAC contractor leaves tools and equipment at a commercial job site overnight. Thieves break in and steal $35,000 worth of specialized equipment.
Contractors Equipment Floater pays:
$35,000 minus $1,000 deductible = $34,000
Medical Equipment in Transit
A mobile diagnostic company's MRI machine is damaged when the transport vehicle is involved in an accident. Repair costs total $125,000.
Medical Equipment Floater pays:
$125,000 minus $2,500 deductible = $122,500
Construction Site Damage
A severe storm damages materials and partially completed work at a building under construction. Losses include roofing materials, drywall, and installed fixtures.
Builders Risk Policy pays:
$85,000 in materials and labor = $85,000
Frequently Asked Questions
What is inland marine insurance?
Inland marine insurance covers property that is mobile or transportable, property in transit, or property that serves as an instrumentality of transportation or communication. Despite the name, it has nothing to do with water—it evolved from ocean marine insurance to cover goods transported overland.
What does inland marine insurance cover?
Inland marine insurance covers a wide range of property including contractors equipment, tools, computer systems, fine arts, valuable papers, goods in transit, installation floaters, builders risk, and specialized business property that moves between locations or requires broader coverage than standard commercial property policies.
How much does inland marine insurance cost?
Inland marine insurance typically costs between $250 to $2,500 per year for most small businesses, depending on the type and value of property covered, deductibles, coverage limits, and industry risk factors. Rates are usually calculated as a percentage of the property value, often between 1-4%.
Who needs inland marine insurance?
Businesses that benefit most from inland marine insurance include contractors with tools and equipment, technology companies with portable electronics, manufacturers with goods in transit, construction companies, medical equipment providers, photography and film production, and any business with valuable mobile property.
Why isn't my equipment covered by regular commercial property insurance?
Standard commercial property insurance typically only covers property at a specified location. If your equipment moves between job sites, is transported in vehicles, or is used away from your primary business location, it may have limited or no coverage under a standard policy. Inland marine fills this gap.
Does inland marine cover theft from my vehicle?
Yes, most inland marine policies cover theft of covered property from vehicles, subject to policy terms. Some policies may require evidence of forced entry or have specific security requirements. Be sure to review your policy's theft provisions carefully.
Can I get replacement cost coverage?
Yes, many inland marine policies offer replacement cost valuation rather than actual cash value (which deducts for depreciation). Replacement cost coverage ensures you can replace damaged or stolen equipment with new items of similar kind and quality.
Related Coverage Options
Inland marine insurance works best as part of a comprehensive business insurance program. Consider these related coverages:
Commercial Property
Coverage for buildings, inventory, and equipment at your primary business location
General Liability
Protection for third-party bodily injury and property damage claims
Commercial Auto
Coverage for vehicles used to transport your equipment and materials
Commercial Umbrella
Additional liability protection that extends your primary policy limits
Disclaimer: This content is for informational purposes only and does not constitute insurance advice. Coverage terms, conditions, and availability vary by insurer and state. Inland marine policies have specific exclusions, limitations, and valuation methods that may affect your protection. Please consult with a licensed insurance professional at Steele Insurance to determine the coverage that's right for your business.
Protect Your Equipment Wherever It Goes
Our experienced agents will help you find the right inland marine coverage for your specific industry and equipment needs.
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