Inland marine is a branch of property insurance for property that is mobile, in transit, or otherwise doesn’t fit a standard commercial property policy written for a fixed location. The name is historical: it grew out of ocean marine (cargo) insurance and has nothing to do with boats on lakes.
What counts as inland marine is set by the Nationwide Marine Definition, adopted by the NAIC and used by states to decide which property can be written on marine forms. Common coverages for small and mid-sized businesses:
- Contractors’ equipment (scheduled or blanket): excavators, skid steers, tools
- Installation floaters: materials a contractor is installing until the job is accepted
- Builders risk: a building under construction
- Motor truck cargo and transit: goods being shipped
- Accounts receivable, valuable papers, electronic data processing equipment
- Bailee coverage: customers’ property in the insured’s care, such as dry cleaners or repair shops
Many inland marine forms aren’t filed with state regulators, so carriers can tailor them, and wording varies a lot from carrier to carrier.
How it shows up in an agency
A landscaper’s property policy covers the shop building, but its $180,000 of mowers and trailers sit on job sites all day. The account manager writes a contractors’ equipment floater with scheduled items over $10,000 and a blanket limit for small tools. The lender on the newest mower goes on as loss payee.
Common confusion
- Tools on a BOP. Many BOPs have only a small sublimit for property away from premises. Check it before assuming tools are covered.
- Valuation. Equipment floaters are often ACV unless replacement cost is requested. See replacement cost vs. ACV.
- Leased and rented equipment needs its own coverage, and the rental contract usually makes the renter responsible.