Inland marine insurance is like a shield for your movable property, such as tools, equipment, and building materials. Let’s break down what it covers and why your business might need it.
What Does Inland Marine Insurance Cover?
Inland marine insurance steps in when your movable stuff gets damaged by a covered danger, like accidents or disasters. This insurance is handy when your regular business insurance doesn’t cut it, especially if you have high-value items like fancy machines or tools.
What’s Included:
- It covers all sorts of risks, unless they’re specifically excluded.
- You can get paid either for the item’s current value or its replacement cost, depending on the policy.
What Doesn’t It Cover?
- Things like bugs, regular wear and tear, mold, floods, and earthquakes might not be covered.
- Vehicles, stuff that doesn’t move around much (like desks), and things damaged before they’re shipped aren’t usually covered either.
Different Types of Inland Marine Insurance:
- Contractor’s Equipment Floater: For contractors’ tools and gear, wherever they are.
- Electronic Data Processing (EDP) Insurance: Protects your tech stuff from all sorts of troubles.
- Bailee Insurance: If you’re responsible for someone else’s stuff (like at a dry cleaner or computer repair shop), this has got your back.
- Accounts Receivable Insurance: Covers you if your customers don’t pay up.
- Installation Floater: For contractors, especially if your gear moves around a lot.
Limits and Deductibles:
- You can set limits on how much the insurance will pay out for specific items or groups of items.
- There’s usually a deductible, which is what you pay before the insurance kicks in.
Why Do You Need It?
- If your business moves stuff around or works at different locations, this insurance is crucial.
- Also, if your regular insurance doesn’t cover all your valuable gear, like computers or high-tech equipment, you’ll want inland marine insurance.
Why “Inland Marine”?
- It’s called inland marine because it’s like its cousin, ocean marine insurance, but for stuff that moves over land instead of sea.
Examples of Claims:
- A landscaping company might claim for a damaged backhoe at a job site.
- A clothing manufacturer might need it when a customer doesn’t pay their bill.
- A solar contractor could use it if their solar panels get swiped from a job site.
Is It Like General Liability?
- Nope, inland marine insurance is all about protecting your stuff, while general liability deals with accidents and damages involving others.
Summary:
Inland marine insurance is your go-to for protecting your gear on the move. From tools to tech, it’s there to save the day when your regular insurance falls short. So, if your business relies on transporting stuff or has pricey equipment, it’s definitely worth looking into.