Inland Marine
A broad category of coverage for property in transit, movable equipment, and specialized property not adequately covered by standard property forms.
What It Is
Inland Marine insurance is a broad and flexible category of coverage designed for property that is in transit, movable, or of a specialized nature not adequately covered by standard commercial property forms. Despite its name, inland marine has little to do with water—it evolved from ocean marine coverage to address the insurance needs of goods being transported over land and property that moves between locations.
Common inland marine coverages include: Contractors' Equipment (bulldozers, cranes, tools), Installation Floaters, Builders Risk, Transit coverage, Valuable Papers and Records, Accounts Receivable, Computer and EDP Equipment, Signs, Fine Arts, and various dealer policies (jewelers, furriers, camera dealers). These coverages are filed under the Nationwide Marine Definition, which outlines what can be written as inland marine.
Inland marine policies are typically more flexible than standard property forms, often written on an all-risk basis with broader coverage territory (worldwide in some cases). They can cover property regardless of location—at the insured's premises, at a customer's site, in transit, or at a temporary storage location.
Why It Matters for Brokers
Inland marine coverage is essential for any business with significant mobile or specialized property. Standard commercial property policies are designed for property at fixed locations and often exclude or limit coverage for property in transit, at job sites, or of unusual types. Brokers who identify inland marine exposure and recommend appropriate floaters provide critical protection that many competitors overlook.
Real-World Example
A contractor has $1.2M in owned equipment—excavators, skid steers, generators, and hand tools—used at various job sites across three states. The standard commercial property policy covers business personal property only at the scheduled premises. While an excavator is at a remote job site, it is stolen. The property policy denies the claim because the loss occurred at a non-scheduled location. A Contractors Equipment floater (inland marine) at $1.2M with a $2,500 deductible (annual premium approximately $14,400) would have covered the $185,000 excavator at any location.
Common Mistakes
- 1Assuming standard commercial property coverage protects equipment and property used at job sites or in transit—it typically does not cover off-premises property.
- 2Not scheduling high-value individual items on the inland marine policy, which may result in per-item sublimits that are inadequate for expensive equipment.
- 3Failing to update inland marine schedules when the insured purchases or disposes of equipment, creating either coverage gaps or premium overcharges.
How brokerageaudit.com Handles This
brokerageaudit.com's Policy Checker identifies business types with significant mobile or specialized property exposure and verifies that appropriate inland marine coverages are in place. The system cross-references equipment lists from the property policy and inland marine policy to identify items that may fall into coverage gaps. The Submission Intake process captures off-premises property details to ensure complete inland marine placement.