Isn’t that equipment covered under my other policies? Why do I need Inland Marine Insurance Coverage?
Commercial insurance is one of the most important things any small business owner will ever buy. It may not seem that this is a fact when purchasing coverage, but in the event of a disaster; the right coverage can mean the difference between a temporary set-back and closing the doors of your business permanently. One coverage that far too frequently goes overlooked is inland marine coverage. Below I will tell you what exactly inland marine coverage is and why your business needs it.
According to the International Risk Management Institute, Inland Marine Insurance is: “Property insurance for property in transit over land, certain types of moveable property, instrumentalities of transportation (such as bridges, roads, and piers, instrumentalities of communication (such as television and radio towers), and legal liability exposures of bailees. Many inland marine coverage forms provide coverage without regard to the location of the covered property; these are sometimes called “floater” policies. As a group, inland marine coverage forms are generally broader than property coverage forms.”
Commonly confused with “marine insurance,” which covers products when transported over water, inland marine insurance covers products, materials and equipment when transported over land, via truck or train. This coverage can also cover products while temporarily warehoused by a third party. The most frequent reasons for a claim involving this coverage is because of collisions and cargo theft.
A couple of the most common small businesses with a need for this coverage are landscaping companies and photographers, but really any business with specialized equipment that may be taken away from the home or office is in need of this coverage. This can include something as simple as an employee taking a laptop with them on a trip to a conference paid for by the company. If this or something similar is a common occurrence within your company than you can protect those losses with an inland marine insurance policy.
One common problem many business owners seem to make is that an inland marine risk is covered by other coverages. Many owners of Landscaping Companies think all the equipment being hauled on a trailer is covered by their commercial auto insurance policy. That is incorrect. The vehicle is covered by a commercial auto policy, but the trailer and anything carried on the trailer are not a covered peril unless you have an additional inland marine policy.
Speaking with a trusted independent insurance agent may be your best way to determine if you need this coverage and how much your business is at risk. An independent agent will be able to quote a policy with several different carriers. An agent with only one or a small number of carriers will not be able to get you the absolute best coverage at rock bottom prices because they only partner with a select few carriers. Choosing an agent with whom you have a great deal of trust in can also help you determine if you need this risk at all. A good agent is your partner and what is best for your business is best for them, because it will help them retain your business year after year. Insurance agents should only be recommending coverages to your business if they are a need of your business. If you have chosen an agent with whom you trust than you can rest assured that if they recommend it than there is a need. Agents do not only sell coverage; they also have to interact with customers when the inevitable occurs. Many times because they have to interact with businesses after a catastrophic loss that was not covered they have a unique view of risk management. This is information you should take to heart if you value your business.
