Logistics businesses usually carry inland marine insurance to cover their company's materials or equipment while they're in transit or stored off-site. This coverage is useful for protecting specialized items that a standard insurance policy won't cover. Here are some important points to know about inland marine insurance.
An inland marine policy covers shipping items on land along with the items stored on land away from your business premises, such as warehouses. Despite the term “marine,” this plan doesn’t offer any coverage for items transported in the ocean or waterways. You should carry inland marine insurance if you regularly ship items by truck or freight.
The businesses that can benefit from inland marine insurance include construction contractors, food trucks, catering services, and businesses that transport raw materials. It's also useful for companies storing specialized property such as art or transporting properties like animals. Additionally, it's helpful for business owners who attend trade shows and exhibitions.
Many companies store products off-site and need to move inventory around to make space for other products. An inland marine insurance policy pays for damaged or lost items in the logistics process, either through shipping or warehousing. This policy might be called builder's risk insurance for construction firms but offers the same coverage, protecting construction equipment transported to job sites.
An inland marine policy typically does not cover stationery items covered by a standard commercial property plan. It also doesn't cover vehicles covered by a commercial auto insurance plan. However, there are exceptions, as an inland marine policy may cover the contents in the vehicle.
You’ll need different types of specialty coverage for certain disasters such as earthquakes or flood damage. If you are transporting items by sea, you'll need ocean marine insurance. For items transported by air, you'll need an air cargo policy. Remember that inland marine insurance usually only covers damage or loss during transit.
Similar to other insurance policies, the cost of an inland marine plan varies depending on the type and size of your business, the type of property being insured, and how far, how often, and in what conditions the items are transported. As an alternative, you can buy an all-risk policy, which costs a little more but covers your property against a wide range of risks rather than specific perils. To get a clear idea of the cost, it's best to get quotes from different insurers and compare them.
The amount of coverage you need depends on the value of the property you want to protect. The higher the property is worth, the more coverage you need. If the value of your equipment being stored or shipped is $100,000, you need coverage for that amount.
Your business should carry the right inland marine insurance in Bristol, CT, to protect your property regardless of how it is stored or shipped. Contact our experts at C.V. Mason Insurance Agency today to get a quote.