Don’t be confused - inland marine insurance coverage has nothing to do with the ocean or other waterways. If you have a business that regularly transports materials over land or stores materials in a location away from your ordinary business premises, you likely need inland marine insurance as part of your overall business insurance package. We explain more about this type of coverage below.
What is inland marine insurance and how does it work?
Commercial inland marine insurance protects your property from hazards while it is in transit via land or sea. This policy covers property regardless of its location, providing it is within the policy territory. Commercial inland marine policies can be written on a scheduled basis, a blanket basis or combination of the two.
Businesses can either get a standalone policy or get inland marine as an endorsement on another policy, although some types of inland marine, such as ocean cargo coverage, typically require a separate policy and sometimes from a specialty carrier, for example Lloyd's of London.
What does inland marine not cover?
Some exclusions business owners might not think about, include:
Mailing or shipping through a common carrier (e.g. FedEx, UPS) may or may not be insured through the cargo carrier.
If equipment is leased or rented from supplier, the renter business might need its own coverage on the equipment.
If property is damaged while it's being repaired, whether working on your own property or working on someone else's property.
Why would a small business need inland marine insurance? Who are good candidates?
Businesses that have property off premises or companies that ship their goods. For example, contractors (regular user of inland marine for tools used away from their shop). Industries that should consider inland marine coverage include: agricultural and farming, contractors, distributors, manufacturers, retailers, trucking operations.
How much inland marine insurance coverage do I need?
For endorsement costs, using a contractor's equipment as an example, $1 per $100 value for large equipment (e.g. bulldozer), and up to $3 per $100 value for small tools/equipment (drills, etc. that are more likely to be stolen).
A standalone policy could have a minimum premium, typically between $250 - $500. If attached to a business package, it might not be subject to a minimum charge. So, it's more advantageous from a premium standpoint to endorse or attach to an overall business package versus a standalone.
Learn more about Inland Marine Insurance here.
Questions about Inland Marine Insurance for your Ohio business? Contact us to speak with a commercial insurance agent.