If the insured has products, materials, or equipment that travels from location to location, or is of high value, the business should carry inland marine coverage. It helps pay to repair or replace portable business property that is damaged by a covered peril.
The type of property typically covered by inland marine is expansive.
Some examples include:
- Cooking equipment in a food truck
- Computer systems and personal computers
- Construction/contractor equipment
- Medical equipment
- Trade show exhibits
- Sales samples
Inland marine policies can be written on either a named peril or all-risk basis.
- All-Risk Policy: This covers all types of perils unless otherwise stated. It typically includes a list of exclusions that details what events the policy won’t cover.
- Named Perils Policy: Only cover losses from the causes listed in the policy as covered losses.
Inland marine insurance has a deductible and a coverage limit. If the business has a claim, the insurer will only reimburse up to the limit stated on the policy.
Reimbursement may be paid on an actual cash value (ACV) or replacement cost (RC) basis. ACV includes depreciation, while RC pays the value of the property at today’s prices. Some policies will include a co-insurance clause that could penalize the insured if they claim a loss that exceeds the coverage limits by a certain percentage.
Be sure to read the policy carefully to understand all coverages, limitations and exclusions.