Inland Marine Insurance For Small Businesses: How It Works (2024)

If your small business transports items such as materials, equipment and tools from one location to another, you’re going to need coverage for problems like fire, theft and vandalism. Relying on your commercial property insurance may be insufficient. That’s where inland marine insurance comes in.

Inland marine insurance is a key coverage type for small businesses that need to transport business property over land or store it at different locations.

What Is Inland Marine Insurance?

Inland marine insurance is a type of small business insurance that covers your business property—such as equipment, materials, products and tools—while it is temporarily stored at an off-site location or in transit over land by automobiles, trucks and trains.

This coverage is separate from marine insurance, which covers your business property while being transported over water.

What Does Inland Marine Insurance Cover?

Inland marine insurance generally covers:

• Business property being transported over land
• Business property inside a commercial truck
• Business property in temporary care
• Business property stored at different locations, such as vending machines stored at a customer’s site
• Business property that is part of infrastructure, such as bridges or communication towers
• High-value property stored at your fixed location, such as a client’s artwork stored at your auction house
• Movable property in a fixed location

For example, if you are a contractor who moves tools and equipment to different worksites, inland marine insurance covers your business property while it is on your work truck and being transported to construction sites.

Here are some examples of the types of business property that are covered by inland marine insurance:

• Construction and contracting equipment
• Communications and networking equipment
• Electronics, such as computers, sound or radio equipment, and televisions
• Fine art and collectibles
• Medical diagnostic and scientific equipment
• Photograph equipment
• Tools and equipment
• Trade show exhibits

What Is Not Covered by Inland Marine Insurance?

Inland marine insurance does not cover:

• Business property shipped by air or sea
• Business vehicles
• Damage from floods or earthquakes
• Property that is damaged prior to shipment
• Stationary property at your main location

Who Needs Inland Marine Insurance?

The commercial property insurance portion of your business insurance covers your business property for problems such as damage, lost or stolen items. That includes items like your tools, inventory and equipment. But commercial property insurance may be insufficient for some small businesses, particularly if your business moves or stores your business property in different locations. Commercial property insurance does not cover goods in transit.

If your business performs tasks such as the list below, you’ll want to consider adding inland marine insurance to your business insurance policy:

• Your business frequently transports business property over land
• Your business occasionally transports high-value property
• Your business has assets that move between different business locations
• Your business stores property at a location owned by a third-party
• Your business has property in a commercial vehicle that is often in motion, such as a repair vehicle or food truck

Different Types of Inland Marine Insurance

Here are some examples of different types of inland marine insurance for different types of professions.

Bailee insurance

Bailee insurance covers other people’s property while it’s in your business’s care. For example, if you own an electronic repair shop, you may need this coverage to protect your client’s computer from problems like theft and fire while it’s in your shop.

Builder’s risk insurance

This covers equipment, materials and structures in progress for a construction project for problems such as fire, theft and vandalism. Builder’s risk insurance is also called “course of construction insurance.”

Coverage typically begins when the materials arrive at the jobsite and ends when the project is complete. You can often add this as an endorsem*nt to your business insurance policy or buy it as a standalone policy.

Contractor’s tools and equipment insurance

This type of inland marine insurance covers mobile equipment and tools that are transported to different worksites. It’s also called “equipment floater insurance.” It’s often used by professionals in the construction, maintenance and repair trades and covers a wide range of equipment and tools, such as backhoes, bulldozers, forklifts, mowers and portable tools.

Related: Contractors insurance: cost and types you need

Exhibition and fine art coverage

This covers valuable items such as fine art while it is on exhibit, on loan or in transit.

Installation floater insurance

This covers materials being installed at a jobsite, transported or stored. For example, installation floater insurance would cover copper wire that has been loaded on a truck to be installed at a jobsite.

Motor truck cargo insurance

Motor truck cargo insurance covers goods and property while they are being transported in your vehicle. For example, if your business has a refrigerated truck that delivers food to a restaurant, motor truck cargo insurance would cover spoiled food if you got into a car accident that caused your refrigerator to malfunction.

Certain types of items may be excluded from coverage, such as:

• Artwork
• Contraband such as alcohol, pharmaceuticals and tobacco
• Explosives
• Furs
• Jewelry, gold, precious metals and precious stones
• Items stored for more than 72 hours
• Live animals
• Money, coins or stamps
• Property or goods owned by your business
• Property while in custody of any other carrier
• Shipping containers

How Much Does Inland Marine Insurance Cost?

The median cost of inland marine insurance is $14 per month, according to Insureon. The median inland marine insurance policy limits for Insureon policyholders is $5,000.

Your costs will depend on several factors, such as:

• Your business type
• Your business location
• How much coverage you choose
• Property value
• Your past claims history

Examples of inland marine insurance costs by profession

Inland Marine Insurance vs. Marine Insurance

Here’s the difference between inland marine insurance and marine insurance:

• Inland marine insurance covers items like equipment, materials and tools when they are transported over land, such as by train or truck.
• Marine insurance covers items like equipment, materials and tools when they are transported over water, such as by boat.

How to Get the Best Inland Marine Insurance

Here are some tips to get the best inland marine insurance:

• Bundle inland marine insurance with other business insurance types. You can often save money by buying inland marine insurance from the same company as your other business insurance policies. For example, you can usually add inland marine insurance to your business owners policy (BOP).
• Compare inland marine insurance quotes. The best way to find cheap business insurance is by comparing quotes among multiple insurance companies. You can often find free quotes online or by contacting an independent insurance agent.