Inland Marine Coverage

Inland Marine is a unique type of coverage for your business’s items such as inventory, equipment, and office contents. Many insurance companies offer BPP (business personal property) but the coverage is restricted to your own premise or within 1,000 feet of your premise. Inland Marine on the other hand covers your personal property anywhere it is within the coverage territory. This is a crucial distinction for many businesses. It is important to note that neither of these covers a building or real property.

Does your business:

1. Sell products online and ship them to customers?
2. Is your business mobile in nature?
3. Do you do business away from your main premises where your equipment or inventory is taken with you?
4. Do you attend fairs and festivals as a vendor?

If you can answer yes to any of these questions an Inland Marine insurance policy is the better coverage for you.

Unlike general liability, which covers claims for numerous losses, as long as it is not excluded, Inland Marine, like most property policies, is a “named peril” coverage. Named peril coverage only pays for claims caused by specific causes that are listed in the policy. Additionally, those perils must be the direct reason for the loss.

• Fire or Lightening
• Explosion, but not caused by or resulting from water
• Windstorm
• Frost or Cold Weather
• Hail, Rain, Sleet, Snow or Ice
• Smoke damage causing sudden and accidental loss
• Vandalism
• Riot or Civil commotion
• Collision, upset, or overturn of a vehicle, in which the contents are being transported by
• Collapse of a building, when caused by the weight of snow, ice, sleet, or rain
• Breakage
• Theft, with certain exceptions such as mysterious disappearance and a police report, must be provided.
• Sprinkler leakage from an automatic sprinkler system
• Sinkhole
• Volcanic Action

A direct cause of loss is the immediate action that caused loss or damage. An indirect cause of loss is a loss that occurs secondarily. To understand this better here are some examples of direct and indirect losses.

Direct Loss Examples:

• There is a fire in your warehouse caused by an extension cord. Some of your inventory and raw materials are burned and others are damaged by smoke.
• On your way to a farmers market you are in a vehicle accident that causes your trailer to overturn damaging the items, you planned to sell.
• The metal shed in your yard collapsed from the weight of heavy snowfall, and the raw materials that were stored in the shed were damaged by the collapse.

Indirect Loss Examples:

• A branch falls on a power line and cuts power to your warehouse as a result of the power outage the food stored in your refrigerated warehouse spoils.
• A hurricane passes through your city causing widespread flooding. Your home is flooded by storm water seeping in through your doors. Your products are destroyed by the flood waters.

We have gathered some helpful tips on keeping your business on track and avoiding loss in the event of severe weather.

• Pay attention to weather alerts and take immediate action to secure your business and its contents.
• Remove valuables and secure them in your vehicle to take with you if you are evacuated.
• Be sure to store your items on high shelves off the ground to help prevent damage from flooding.
• During or just after a heavy snowfall, remove snow from the accessible areas of your roof and outbuildings.
• Install a generator or other backup power source for refrigeration if you store perishable items as part of your business.

You can manage your policy 24/7 by accessing your dashboard through our website. There you can create certificates of insurance, change your coverage, file a claim, or print copies of your insurance documents.

And our licensed customer service team is standing by to help Monday through Friday from 6 a.m.–6 p.m. MST. You can reach them by phone, email, or chat.

You may see Inland Marine Coverage phrased a little differently on insurance policies. Some other common terms used are:

• Tools & Equipment Coverage
• Gear & Equipment Insurance
• Tools, Supplies, & Inventory Coverage

Always be sure to read the coverage details and policy terms to ensure you are getting the right kind of coverage for your business.