Understanding inland marine insurance

Don’t let the term “inland marine” confuse you. As opposed to “marine insurance,” which covers products when transported over water, inland marine insurance covers products, materials and equipment when transported over land—e.g., via truck or train—or while temporarily warehoused by a third party. Collisions and cargo theft are the two most frequent causes of inland marine losses.

Does your business need inland marine insurance?

Many businesses are adequately covered by a Business Owners Policy (BOP) or Commercial Package Policy (CPP). These policies generally protect property at a fixed location and sometimes include tools or equipment that employees transport to nearby job sites.

However, if your business regularly ships high-value products or equipment—or stores them offsite—you may benefit from inland marine coverage. This type of insurance can cover specialty equipment and products such as:

• Computers, from servers to laptops
• Communications and networking equipment
• Construction and contracting equipment
• Medical and scientific equipment
• Photography or audiovisual equipment

Inland marine insurance isn’t just for shipping goods to customers. Consider it if:

• You have a valuable tradeshow booth that travels frequently and is stored by a vendor
• Your business temporarily possesses someone else’s property

Specialized Inland Marine Coverages

• Bailee’s Customer Coverage – Protects clients’ property left in your care (e.g., warehouses, repair shops).
• Builder’s Risk – Covers structures and materials during construction or renovation projects.
• Exhibition and Fine Art Coverage – Protects valuable items while on display, in transit, or on loan.
• Installation Floater – Covers materials from the moment they are loaded until installation.
• Motor Truck Cargo Coverage – Protects clients’ goods while your business transports and delivers them.

Key Considerations for Inland Marine Coverage

• Expanding Exposures: Businesses increasingly rely on mobile equipment, goods in transit, and third-party warehousing. Inland marine insurance protects property while it’s moving or temporarily stored offsite.
• Specialized Coverages: High-value items—such as fine art, exhibition materials, or sensitive electronics—require tailored inland marine policies or floaters. Standard property insurance often excludes these exposures.
• Tariff and Regulatory Considerations: Policies may be affected by jurisdictional or tariff-related complexities, especially for multi-location or cross-border operations. Proper compliance and documentation are essential for coverage.
• Third-Party Custody Risks: When your business holds someone else’s property—whether at a warehouse, job site, or in transit—bailee or customer coverage can mitigate potential losses.
• Risk Management Expectations: Insurers emphasize loss-prevention measures, including secure storage, transit tracking, and supply chain oversight. Strong risk-management practices help ensure coverage remains effective.

Bottom line: Inland marine insurance focuses on protecting moving, high-value, or temporarily stored assets while navigating regulatory and operational complexities.

Your insurance professional can help determine whether inland marine coverage makes sense for your operations. If you choose this coverage, your insurer may also provide risk assessment and loss prevention services tailored to your business.