What is an Inland Marine Policy?
An Inland Marine policy is a type of business insurance coverage that provides insurance for tangible property that moves from one location to another within a country or area, and is not always located in one fixed area. It is designed to cover businesses that have operations, materials, or other property that is moved during the normal course of doing business, such as machinery, tools, equipment, finished goods, and other insured property.
What Kinds of Property are typically Insured?
Most Inland Marine policies insuring:
• Trucks, trailers, vans, and other vehicles: owned, leased, hired, or borrowed
• Crates, skids, and containers
• Machinery and equipment (e.g., machinery, tools, equipment)
• Commodities and goods: finished and unfinished, including paper, cotton, wool, etc.
• Shipments on land and railroad: moving by truck, rail, or other lands-based transport
• Personal effects and fine art for business use and not personally owned
The type and scope of inland marine policies can vary broadly, so it’s vital to determine the specific characteristics and scope of your policies based on your business specifics.
What are Some of the Key Features?
- All-perils coverage: comprehensive cover against sudden and accidental destruction or loss
- Blanket coverage: often includes property not specifically valued, usually up to $100
- Maximum liability (e.g., aggregate, individual accident)
- Deductible: amount insurers subtracts from the payout for any claim
- Cargo insurance: some inland marine policies may integrate with shipping and cargo insurance companies
Some inland marine coverage is tied to specific territories or routes, so carefully assess and understand the scope when taking on a policy:
• Territorial limits
• Weight or valuation limits
• Customs clearance duties and tax
Reasons for Inland Marine Coverage
- Loss protection: In the event of loss or destruction of covered property, indemnify (compensate) policyholders for these losses, ensuring continued and uninterrupted operation.
- Asset protection: Financial loss reduction, which impacts financial risk and the future stability of the business operations.
- Risks identification: Identify known risks involved in moving operations and related property, proactively creating a more substantial business stability.
- Competitive advantage:
– Enhances company stability: by actively reducing or eliminating potential exposures to insurable risks or property
– Investor attractiveness: demonstrating stability, foresight, in management operations
Typical Perils Covered
| Perils | Types of Damage/Pay |
| Airborne OBJECTS (e.g. missiles) | Collision Damages or Loss |
| Collision while loading, unloading OR MOVING | Typically Includes Damage to Road or Trailers |
| Fire Hazard, Flames, Heat FROM OUTSIDE | General Loss Due to Fire Origin |
| Loading/unloading, Storage Lien Issues | Delay in Coverage, Re-possession from Lien. |
Many Inland Marine policies cater to industry-specific risks inherent to industries such as electronics, high-tech, paper and paper products, mining, lumber, and petrochemicals. Make sure your policy aligns with specific industry needs through regular evaluations and updates during changes and growth.
Preparation and Key Factors:**
- Precise policy formation: Work closely with trusted brokers to create a fitting and complete policy that identifies potential vulnerabilities.
- Appraisal and schedule updates: Regularly Update coverage information to reflect specific asset variations, new vehicles, trailers, or even containers added to the in-house and on-the-clock assets.
