When most people hear the words “inland marine insurance,” they probably think of insuring a boat. It’s a common misconception, but inland marine insurance actually has nothing to do with watercraft. Instead, it’s designed to protect valuable items that are being transported over land or stored in a third-party warehouse. Inland marine insurance evolved from ocean marine insurance, which originally covered goods shipped by water. As shipping and commerce expanded beyond maritime routes, insurance companies developed inland marine policies to protect property in transit over land and at various locations.
Given how confusing the name can be, you may not be sure if you need this type of coverage. And if you’ve been working with a captive insurance company, you may not even know if you already have it. Insurance companies created inland marine insurance to cover property and goods that are excluded from standard property insurance policies. Certain high-value items are often excluded from standard business insurance, making inland marine insurance necessary for comprehensive protection. That’s where we come in. At Pepper, Johnstone & Company, our insurance experts are here to clear up the confusion and help businesses in Alabama and beyond understand how inland marine insurance or other types of coverage can protect their bottom line.
What is Inland Marine Insurance?
Put simply, inland marine insurance is a type of business insurance. Inland marine insurance is designed to provide coverage for a wide array of movable property and specialized equipment. It can cover items such as tools, equipment, and materials that are frequently moved or stored off-site, and is intended to protect property during transit or temporary storage. It covers various types of products, materials, and equipment transported by land, either by truck or train. It also includes coverage for items being warehoused at an off-site location.
Inland marine insurance offers property coverage for items that are not protected by standard business insurance.
Inland marine insurance policies offer different coverages to meet the unique needs of businesses.
What Does Inland Marine Insurance Cover?
Some items that inland marine insurance typically protects include:
- Electronics & Technology - Any type of electronic device that is mobile, including, but not limited to:
- Laptops & communication devices
- Cameras & photography equipment
- Inland marine insurance is also important for the communications sector, covering items such as communication towers and related infrastructure.
- Construction Equipment - Both heavy machinery and building materials are covered under such policies. The construction industry relies on inland marine insurance for off-site equipment and materials.
- Medical & Scientific Equipment - From medical devices, including medical diagnostic equipment, to laboratory supplies, these essential items are covered.
- Specialty equipment - This includes high-value, specialized, or unique tools and materials, such as entertainment production gear or scientific instruments.
- Inland marine insurance can also cover renewable energy assets such as wind turbines and solar panels.
- Inland marine insurance covers specialized property, such as communication towers and infrastructure related to transportation or communication.
That said, while inland marine insurance covers a broad range of items, it applies to specific situations, which include:
- Transportation - The covered item is being transported by land.
- Warehousing - Covered items are stored at a warehouse or storage facility.
- Construction - Heavy equipment that needs to be scheduled and insured separately, or building materials left at a jobsite waiting to be installed.
As an example, a mobile medical lab or a wind farm in transit would be protected under inland marine insurance.
No matter the situation, if your business is involved in activities like transporting goods or storing items off-site, inland marine insurance is essential to protect your products and property. If you’re unsure whether your business is covered, it’s always a good idea to consult with an independent insurance expert.
The team at Pepper, Johnstone & Company can assess your specific risks and make sure you have the right coverage in place.
Common Types of Inland Marine Insurance Policies
As with any other type of insurance policy, there are a variety of inland marine policies offering a range of coverage options with different limits and deductibles to meet the needs of different businesses. All functions to protect products or property from events such as theft, cargo theft, accident, or other threats during storage or transportation. Policyholders should consider the value of their property and select appropriate coverage limits to ensure adequate protection. Inland marine policies can be tailored to the subject of the insured property or specific business need, providing flexible solutions.
These types of policies include:
- Customer Coverage - If you operate a warehouse or repair shop, this type of coverage protects your customers’ property while it is in your care.
- Builder’s Risk - During a construction or renovation project, products must be transported to and stored at the job site. This coverage protects them.
- Exhibition & Fine Art - Valuable artwork or artifacts require this type of special protection while on exhibit, in transit, or on loan to other exhibitors.
- Cargo Coverage - If you transport goods via truck or rail, this type of insurance coverage protects your products while in transit and during delivery, including events such as cargo theft and accidents.
The cost of inland marine insurance depends on the value of the property, selected coverage limits, and deductible. Benefits of inland marine insurance include flexible coverage options and protection for specialized or high-value property.
Claims can be paid based on actual cash value or replacement cost coverage, depending on the policy. If you need to file a claim, you typically notify your insurer, provide documentation of the event and loss, and the insurer will review and pay for covered losses up to the policy limit, minus any deductible. The claims process is designed to help you recover quickly and efficiently from covered events.
If you’re not sure which type of protection is right for your business, reach out to an insurance expert—like the team at Pepper, Johnstone & Company. We’ll work with you to find the coverage that best fits your needs. Contact us today, and let’s get started!
Who Can Get Inland Marine Insurance?
Almost any business can benefit from an inland marine insurance policy. A wide range of companies, including those in the construction, technology, and communications sectors, benefit from this coverage. Insurance companies offer inland marine insurance to meet the needs of businesses operating in different industries. However, certain industries face a higher risk of losses, making this coverage especially important for them. These include:
- Construction
- Technology
- Healthcare
- Food Services
- Jewelers
- Museums & Artists
- Educational Institutions
- Government Agencies
- Dry Cleaners
- Auto Repair
No matter your industry, inland marine insurance offers valuable protection for companies that transport or store products. Depending on the policy, inland marine insurance can provide coverage for goods transported across the country or even internationally. If you’re in one of these fields—or just want to make sure you’re covered—consult with our insurance experts. We’ll help you find the right policy tailored to your business needs. It’s important to assess whether inland marine insurance makes sense for your specific risks and operations.
Why Do I Need Inland Marine Insurance?
When you’re transporting or storing items, a lot can go wrong—especially when it comes to collisions and theft, which are two of the most common causes of inland marine losses. Inland marine insurance is designed to provide coverage for losses that occur during transit or storage. Inland marine insurance helps protect your business from these risks.
That said, you might face other types of risks too, like property damage from natural disasters—think incidents like 2014’s “snowpocalypse” or the more recent Hurricane Helene. Inland marine insurance can protect against a variety of risks, including natural disasters. An insurance expert can help you identify your specific risks and find the coverage that best protects your business. Having a safety plan in place is also important to minimize risks and ensure a smooth claims process if a loss occurs.
And if your company participates in tradeshows or events that involve a lot of travel, inland marine insurance can cover the displays and equipment you’re transporting. Just keep in mind that the items need to be transported by land to qualify for coverage. A streamlined claims process is essential for businesses that experience losses at events or during transit.
Get Inland Marine Insurance for Your Business Today
Whether you’re warehousing products in Alabama or transporting cargo across state lines, marine inland insurance is essential to protecting your livelihood. Pepper Johnstone can help you explore your options to find the right coverage. To learn if this type of insurance is right for your business, contact us online or call us at 866-872-0431 today.
Marine Inland Insurance Coverage for Businesses in Alabama & Across the Southeast
Inland marine insurance plays a crucial role in protecting the products we rely on every day. At Pepper Johnstone, we understand the unique needs of businesses in Alabama and are here to help you navigate your options. Let us help you secure the right coverage to protect what matters most. Contact us online or call us at 866-872-0431 to get started!