Inland marine insurance is a form of property insurance. Regular property insurance is for stationary objects, whereas marine insurance is for property that can be put in transit or can be in transition (i.e. builder’s risk). Generally, if the property is in transit over a body of water it is covered under ocean marine insurance and if the property is in transit over land, it would be covered under inland marine insurance.
When you hear the term, ‘Marine Insurance’ you most likely think of insurance coverage relating to large bodies of water or boating. Well, you aren’t completely off-base with this idea. The origins or marine insurance allegedly started back in the 17th century when merchants relied on bodies of water such as oceans, rivers and canals as their main routes for transportation. ‘Ocean marine insurance’ was initially offered for the cargo of ships transporting goods across these waters. This coverage eventually expanded to include cargo after it had been unloaded and would then be considered ‘Inland Marine’ insurance. This coverage is used by those who are nowhere near the ocean and have no intention of carrying anything by ship.
Commercial insurance usually covers specific scheduled premises. Inland marine insurance applies to the goods and property associated with someone’s job, regardless of where they are. For example, a manufacturer’s product being shipped across the country is covered or equipment owned by a contractor. In addition, fixed property used for communications or transportation is also included, such as computers, bridges, radio/television broadcasting equipment, etc. Buildings under construction are also covered under builder’s risk.
You may want to recommend inland marine insurance to your clients to fill gaps in their coverage. If they repair, service or perform work on the property of others, this insurance can cover losses to goods that occur on the job site or while being transported from one site to the other.
Again, although the term ‘marine’ may have you thinking about boating insurance, it is more than it seems. Inland Marine insurance is one of the most diverse types of Property & Casualty insurance and should not be disregarded.
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