No matter what industry your business operates within, all businesses face certain key risks that should be insured against. Unfortunately, there are many misconceptions when it comes to business insurance and what certain policies cover. 
Commercial auto insurance, for example, covers vehicles owned or used by a business for work purposes. Many believe that this policy will also cover the contents of the vehicle, but this is unfortunately not the case. If you are transporting items or equipment in your commercial vehicles, you may not be covered if they are damaged due to an accident.
This is where inland marine insurance comes in. Inland marine insurance covers equipment if it is damaged while being transported on land (e.g., shipped by vehicle or train).
Examples if items insurable by inland marine coverage include:
- Property owned by a business, from heavy machinery to office equipment
- Imports and exports
- Domestic shipments
Inland marine insurance also protects high-risk property, such as a contractor’s or tradesman’s tools that are not covered by standard business property insurance policies.
Inland marine insurance normally provides a business with insurance against damage to equipment or infrastructure involved in transporting products. This means if a company truck is carrying cargo and destroys a guard rail, you have coverage for the cost of repair to your truck and for reimbursing the authority that owns the guard rail for repair or replacement.
Inland Marine Insurance for Different Industries
Retail and Restaurants
Retail stores and restaurants often receive cargo such as products and equipment through trucks, as well as sending out deliveries. Say your restaurant is receiving a new freezer and a contractor comes to install it. On the way, they get into an accident and the freezer is damaged. Inland marine insurance can help compensate for repairs or a replacement for the freezer.
For retail, say you are finally moving from your home into a new rented property to start your retail business beyond online orders. While carrying equipment and products, you get caught in a bad storm and your windows are damaged, ruining the equipment and products inside. While this won’t be covered under auto insurance, it may be covered under inland marine insurance.
Medical Practices
Numerous medical practices now take their services on the road. If you plan to travel with your medical practice, you will want inland marine insurance to protect the expensive medical supplies you are traveling with.
Transporting medical supplies means moving a significant amount of property value. So, these items need enough insurance to protect the practice's finances in case of their loss. Sometimes, the only way to achieve full coverage is to buy an inland marine policy.
Mobile medical clinics are essentially fully-stocked doctor’s offices on wheels. Usually, they are vans or large conversion vehicles. They might visit communities to provide diabetes testing for home-bound senior citizens. They might travel to rural communities that don’t have access to full hospital services. They can often provide lab testing, pregnancy care, X-rays, vaccinations and more.
Even if you aren’t planning to be completely mobile, inland marine insurance is still crucial for many medical practices and professionals with ambulances transporting medical equipment or those moving offices. For example, if you are moving to a new location for your practice and transporting expensive medical equipment, inland marine insurance can help save you from replacing those expensive items out of pocket in case of an accident.
Contractors
Contractors also face a high risk of danger when it comes to transporting equipment and material. Saws, drills and other tools can quickly add up to be an expensive loss if an accident occurs on the road while you are traveling from job to job. It can also put your project in danger by delaying your original timeline, risking an upset client. Inland marine insurance can help you repair or replace your important tools and items if they are damaged or lost while in transport.
Is Inland Marine Insurance Covered Under Commercial Property?
A basic commercial property insurance policy will not typically come with inland marine insurance. Be sure to ask your insurer about adding this coverage to your policy. You can also add it to package policies such as a business owners policy (BOP), which combines coverage for small businesses in low risk industries.
On its own, inland marine insurance is relatively inexpensive, although premiums vary depending on your location, claims history, credit score, equipment being transported, industry and other factors.
Be sure to speak with an insurance agent and shop around to find an inland marine insurance policy suited to cover your business’ potential losses on the road.