What Does Inland Marine Insurance Not Cover?
Inland marine insurance is a type of insurance that protects against losses or damages to goods and merchandise while in transit or storage on land. While it provides coverage for a wide range of risks, there are still some exclusions and limitations that policyholders should be aware of. In this article, we will delve into the specifics of what inland marine insurance does not cover.
Exclusions
Inland marine insurance policies typically exclude coverage for certain types of risks, including:
• Art and Antiques: These items are typically covered by separate insurance policies, known as fine art insurance or personal articles insurance.
• Money and Securities: Money, negotiable instruments, and securities are typically covered by a separate insurance policy, known as a cash-in-transit insurance.
• Mobile Equipment and Vehicles: Equipment and vehicles used for business purposes are typically covered by a separate insurance policy, known as equipment breakdown insurance or fleet insurance.
• Machinery and Equipment in the Course of Business: Machinery and equipment used in the course of business are typically covered by a separate insurance policy, known as machinery and equipment insurance.
Limitations
Inland marine insurance policies also typically have limitations on coverage, including:
• Weight and Size: Some insurance policies may have limitations on the weight and size of items that can be insured.
• Value: Some insurance policies may have limitations on the value of items that can be insured.
• Age: Some insurance policies may not cover items that are over a certain age.
• Location: Some insurance policies may not cover items that are located in specific areas, such as countries with high political risk or areas prone to natural disasters.
Additional Exclusions and Limitations
In addition to the exclusions and limitations mentioned above, inland marine insurance policies may also exclude coverage for the following:
• Electronics and Electronic Data: Electronics and electronic data may be excluded from coverage unless specifically listed in the policy.
• Fungi and Bacteria: Insurance policies may exclude coverage for damage caused by fungi and bacteria, unless specifically listed in the policy.
• Water Damage: Insurance policies may exclude coverage for water damage unless specifically listed in the policy.
Table: Inland Marine Insurance Exclusions and Limitations
| Exclusion/Limitation | Description |
|---|---|
| Art and Antiques | Items of value and historical significance |
| Money and Securities | Currency, negotiable instruments, and securities |
| Mobile Equipment and Vehicles | Equipment and vehicles used for business purposes |
| Machinery and Equipment in the Course of Business | Machinery and equipment used in the course of business |
| Weight and Size | Items exceeding specific weight or size limits |
| Value | Items exceeding specific value limits |
| Age | Items that are over a certain age |
| Location | Items located in high-risk areas or countries with political unrest |
| Electronics and Electronic Data | Damage to electronic equipment and loss of data |
| Fungi and Bacteria | Damage caused by fungi and bacteria |
| Water Damage | Damage caused by water, unless specifically listed in the policy |
Conclusion
Inland marine insurance is a vital coverage for businesses that rely on shipping and transporting goods. However, it’s essential to understand what the policy does not cover in order to avoid unexpected losses. By reviewing the exclusions and limitations listed above, business owners can take steps to mitigate their risk and ensure that their goods are adequately protected. Remember to review your policy carefully and discuss any questions or concerns with your insurance broker or agent.
Recommendations
- Review your inland marine insurance policy carefully to understand the exclusions and limitations.
- Consult with your insurance broker or agent to ensure that your policy is adequate for your specific business needs.
- Consider purchasing separate insurance policies for high-value or specialized items, such as fine art or electronics.
- Implement risk management strategies to minimize the risk of loss or damage to your goods.
By following these recommendations, businesses can ensure that they are adequately protected against the risks associated with shipping and transporting goods, and minimize the impact of unexpected losses.
