Inland Marine Insurance
Coverage for property in transit over land, movable equipment, property in the care of bailees, and instrumentalities of transportation and communication.
What It Is
Inland marine insurance is a broad category of coverage that evolved from ocean marine insurance to cover property that is mobile, in transit, or not adequately covered by standard commercial property policies. Despite its name, most inland marine coverage has nothing to do with water — the name is a historical artifact.
Common inland marine coverages include: Contractors Equipment (covering bulldozers, cranes, and tools), Transportation/Motor Truck Cargo (goods in transit by truck), Bailee Coverage (property of others in your care), Installation Floaters (materials being installed), Electronic Data Processing Equipment, Fine Arts, Accounts Receivable, and Valuable Papers.
Inland marine policies are typically written on a broader 'all-risk' basis compared to commercial property policies, and they cover property at multiple locations or while in transit, which standard property forms often exclude.
Why It Matters for Brokers
For brokers, inland marine is one of the most commonly overlooked coverage needs in commercial accounts. Contractors' tools and equipment, property in transit, and specialized movable assets are often not adequately covered under the standard commercial property policy. Identifying these gaps and recommending inland marine coverage demonstrates expertise and prevents E&O exposure from uninsured losses.
Real-World Example
An electrical contractor's crew leaves $85K worth of wire, transformers, and specialized testing equipment on a job site overnight. Thieves steal everything. The contractor's commercial property policy only covers property at the insured premises (the contractor's office and warehouse), not at job sites. However, the contractor's inland marine contractors equipment floater covers owned tools and equipment at any job site location, paying the claim less a $2,500 deductible.
Common Mistakes
- 1Assuming the commercial property policy covers tools and equipment at job sites — most CPP forms limit off-premises coverage to a small sublimit or exclude it entirely.
- 2Not reviewing the inland marine policy's exclusion for equipment while being operated — some contractors equipment floaters exclude losses that occur during use rather than while stored.
- 3Failing to update equipment schedules as the client acquires new equipment, leaving recently purchased items uninsured.
How brokerageaudit.com Handles This
Policy Checker identifies inland marine coverage in uploaded policies and extracts scheduled equipment lists, territory definitions, and sublimits. The system cross-references inland marine coverage against the commercial property policy to identify potential overlaps or gaps.