Shipping insurance (inland marine insurance) provides coverage for:
- Damage or destruction of your property (products, goods, equipment, etc.), while in transit, temporary storage, or in some other non-permanent location
- Liability exposure for damage or destruction of someone else’s property under your care, custody, or control – bailee customers goods.
Shipping insurance, inland marine insurance, transportation insurance, transit insurance, freight insurance, moving insurance, and cargo insurance—all of these monikers describe essentially the same type of insurance coverage for equipment, products, or goods that are moved from one location to another.
Coverage of Offsite Tools: It also covers your business property, such as your tools, when you are working offsite. For example, if you are contractor and your tools are stolen from your vehicle or a work site, inland marine insurance would cover their replacement.
Equipment Coverage: Another example of coverage is for equipment or property that may be involved while in transit. For example, should your truck driver crash into a power pole, an inland marine insurance policy will cover the equipment in transit.
Legal Coverage: Finally, an inland marine policy also covers costs that may arise because of a loss or damage to goods, products, or equipment that are insured while in your care custody, or control.
Am I not covered by general property and liability insurance?
Yes and No. Your general property and liability insurance provides you and your business assets with protection while your products, goods or equipment are on your business premises. However, these policies are not designed to protect your assets while they are in” transit”. What this essentially means is that the moment your property leaves your business premises, it is no longer insured, except for the enhancements built into the policy.
Therefore, if your business is a commercial or industrial operation, such as servicing, processing, manufacturing, distributing and wholesaling, or importing and exporting—inland marine insurance is critical to properly protecting your company’s exposures.
Typical Coverage for Inland Marine Insurance
- Fire / lightning / windstorm / flood / earthquake / landslide
- Collision / derailment / overturn of the transporting vehicle
- Collapse of bridges (it happens more often than we realize)
Or, All Risks:
- The most desirable approach providing the best coverage.
Types of Property Insured During Transportation or Temporary Offsite Storage
- Products, raw materials, and other goods
- Valuable papers and records
- Commercial fine art
- Contractor and other trades professionals’ tools and equipment
- Professional photographers’ equipment
- Pet Groomers equipment
- Veterinarians equipment