What is inland marine insurance? For contractors, it’s an indispensable coverage. Simply put, inland marine insurance covers products, materials and equipment when transported over land (commonly by truck) or while stored temporarily at a job site or warehouse.
In the early days of insurance, when businesses used ships to transport items, ocean marine insurance was born. As time went on and businesses began to ship items regularly by train, truck and bus, a new insurance product entered the market. To better reflect what this coverage would protect, it was named inland marine insurance.
What does inland marine insurance cover?
At Frankenmuth Insurance, our inland marine insurance is designed with contractors in mind. With this policy, the coverage goes where the property goes. So, if your products, tools and equipment are in transit over land or being stored at an off-site location, they’re protected. (With standard commercial insurance, they’re covered only at the location listed on your policy.)
For example, inland marine insurance can include:
- Contractors’ equipment – Damaged and stolen contracting equipment, including leased or rented equipment, is covered, along with employees’ tools. With this protection, you can be reimbursed for necessary rental equipment and get help paying for cleanup after an accident. So, if an incident occurs, you’ll have the support you need to stay on track (and on budget).
- Builders’ risk – Buildings and structures (even scaffolding and temporary fencing) are covered during new construction projects or renovations. And, if a project gets delayed, we also offer soft costs coverage to help cover additional expenses for:
- Advertising, public relations and promotions
- Architects, interior designers, consultants and engineers
- The cost of financing (like interest payments and commissions)
- Renewing or replacing construction permits or other licenses
- Even the cost of insurance premiums, and more
- Installation floater – Materials (like HVAC systems or kitchen cabinets) are covered from the time they’re loaded onto a truck to the time they’re installed. Testing coverage also is offered; so, if a start-up, stress or performance test (like for an HVAC system) doesn’t go as planned, the costs incurred to help it go right are covered.
Is coverage affordable?
Several factors impact the cost of an inland marine policy, including the property value, coverage limits, industry risk and your past claims history. Considering the variety of exposure types and the costs of contractor materials and equipment, protecting these items from loss or damage often makes good business sense.
What policies pair well with inland marine insurance?
Inland marine insurance can supplement your standard commercial insurance, or it can be written on its own. Either way, it complements any program featuring commercial property, general liability, commercial auto, workers’ compensation or umbrella insurance.
Interested in building your policy? For more information, talk with an independent agent today.