Best Inland Marine Insurance Plans for November 2024

What is inland marine insurance?

Inland marine insurance is a specialized type of business insurance that covers goods, tools, supplies, and other assets while they’re being transported over land, are on vehicles, or are in off-site storage.

Getting inland marine coverage is like taking out an insurance policy on electronics or another valuable item being shipped. In the event of loss or damage, this type of policy provides financial compensation so you can replace or repair your item without paying out of pocket.

Because inland marine insurance typically covers items while in transit over land, be aware that there may be coverage gaps or restrictions outside certain geographical areas, or when products are transported over water. For that reason, it’s always best to read the terms and conditions of any policy before taking it out.

Inland marine insurance vs. marine insurance

The name “inland marine” can be deceiving, as this insurance does not cover items transported over water. It’s called “inland marine” because this insurance falls under the broader umbrella of marine insurance which is typically used to insure goods that are transported over water. Inland marine insurance, however, only covers goods transported over land by trucks, trains, automobiles, and other movable vehicles.

In contrast, marine insurance typically covers risks associated with shipping goods to international ports. Inland marine policies can include specific coverage for high-value tools, communication equipment, and high-value merchandise, which standard marine policies don’t usually cover.

Inland marine vs. commercial property insurance

Commercial property insurance can protect property being stored at your main business location, whereas inland marine insurance can only protect property stored off-site, or in transit between job sites. This is a major difference between commercial property and inland marine insurance.

For this reason, it may make sense for your company to have both a commercial property insurance plan, like business personal property insurance, as well as an inland marine insurance plan.

How can inland marine insurance protect my business?

If you own or operate a business—especially one that is service-based or involves traveling with expensive tools or equipment to job sites—inland marine insurance can help provide the protection you need in the case of property damage.

Inland marine insurance covers items like laptops, machinery, merchandise, and other forms of mobile property during transport. This added layer of protection can save your business from unexpected costs due to damaged equipment.

What does inland marine insurance cover?

Inland marine insurance offers property coverage for unique business situations beyond traditional fire or theft policies. It can protect goods or equipment on the move or in between locations, stored off-site or on movable vehicles, or used in providing transportation services. This type of coverage is beneficial when your business’s physical property is especially mobile and at risk of being lost, stolen, or damaged while in transit.

With inland marine coverage, you can protect your valuable items while being moved or stored remotely.

Some typical use cases for inland marine coverage include:

• Property in transit
  Inland marine insurance covers goods while they are in transit. This includes property that is being shipped, freighted, or operated between two points.
• Property stored off-site
  Inland marine insurance also protects goods that are stored in a warehouse or other storage facility away from the business’s primary base of operations. Goods or equipment are also covered while being transported between these locations.
• Property on movable vehicles
  Items that are being transported on a vehicle, such as a truck or a trailer, can also be covered by inland marine insurance. This includes items like tools and communication equipment that may be at risk of damage or loss during transportation.
• Property that provides transportation
  Coverage can be tied to shipping containers, tool trailers, and tractor-trailers used in the movement of goods or equipment.
• Other people’s property
  In some cases, if you have other people’s property stored at your site, inland marine insurance may cover it if the property is lost, stolen, or damaged.

What does inland marine insurance not cover?

While inland marine insurance can cover a wide range of property in transit or at a fixed location, there are some exclusions and limitations that may vary by insurer and policy.

Here are some common items that may not be covered by inland marine insurance:

• Stationary property at your main location
  While inland marine can cover items in off-site storage, it does not cover property that is stationary at your main business location. These items should be covered under a standard commercial property policy.
• Property transported by water, sea, or air
  Inland marine insurance does not cover items transported by water, sea, or air. For this, you need a separate policy, such as coverage provided by marine insurance.
• Vehicles
  Inland marine insurance does not cover vehicles like cars, vans, or trucks. In most cases, these are covered under a standard car insurance policy or commercial auto insurance.
• Natural disasters
  Natural disasters, such as floods and earthquakes, are often not covered by inland marine insurance. If you need coverage for these events, consider purchasing separate commercial flood insurance or commercial earthquake insurance.
• Damages caused by negligence
  Inland marine insurance also cannot provide coverage for any damages or losses due to negligence on the part of a business owner or designated employees. This means that any incidents caused by lack of care or improper maintenance of a vehicle or other property would not be covered.
• Financial payouts & medical benefits for employees
  Inland Marine insurance does not cover financial payouts or medical benefits for employees who are injured on the job or become ill due to their work. For this, you will need workers compensation insurance.
• Cyber-related damages such as cyber attacks
  To protect your business from cyber attacks, we recommend purchasing cyber liability insurance.

Each plan will have specific coverage inclusions and exclusions. Therefore it may be helpful to speak to an insurance professional to discuss coverage options as well as what is needed for your business.

What type of businesses need inland marine insurance?

While inland marine insurance is an important type of coverage, not all businesses need it.

Here is a list of the types of companies that could benefit from inland marine insurance:

• Companies that have movable assets, such as construction equipment
• Companies that store items off-site
• Logistics-related companies that ship or transport property by land
• Companies that ship high-dollar items, even occasionally
• Companies with permanently mobile vehicles, such as sales vehicles or moving trucks

Ultimately, any business that is mobile or ships items should look into getting inland marine coverage. This is especially true if you regularly transport expensive equipment, especially to job sites, as well as those that regularly transport or deliver valuable goods that could get lost, damaged, or stolen while in their care.

Some examples of businesses that can benefit from inland marine insurance include:

• Contractors, builders, & construction workers
• Electricians, plumbers, & handy-persons
• Window installers
• Food trucks
• Cleaners
• DJs / sound engineers
• Commercial photographers
• Landscapers & lawn-care workers
• Pool technicians
• Online retailers
• Art dealers
• E-commerce business
• And more

See more details in our comprehensive guides to insurance for the following types of businesses:

How much does inland marine insurance cost?

Inland marine insurance policies can be a critical part of any business’s financial planning, but it can be challenging to determine its cost as many factors go into calculating your premium.

To help you get an idea of how much an Inland Marine insurance policy can cost, we got an online quote using our business insurance quote tool powered by Simply Business. We simulated a quote for a pressure washing company based in Florida. Based on these simple parameters, we were quoted $325 per year for a plan that included $5k in coverage for the contractors’ small tools and equipment.

This exercise serves only for example purposes as the real cost of Inland Marine insurance will be different for your business based on a range of factors that go into calculating the cost. However, it’s helpful to get a ballpark figure of what a small company could expect to pay for an Inland Marine plan with $5,000 in coverage.

That said, let’s take a look at what factors can influence how much an Inland Marine plan will cost you.

Cover your tools & equipment from $23.92 per month*

*Monthly payment calculations may vary by state, insurance provider, and the nature of your business.
Averages based on $5,000 coverage limit, no additional coverages and a 25% downpayment.

What factors affect the cost of Inland Marine insurance?

Here is a list of factors that can affect the cost of inland marine insurance:

• The size of your business
• The type of business you operate
• The type of property that needs insuring
• How your property is transported / under what circumstances and conditions
• The breadth and extent of coverage you choose

The main factor that affects the cost of business insurance is the size of your business. Both annual revenue and employee count can play an enormous role when it comes to what kind of premiums you’ll pay, as larger businesses often incur higher rates.

The type of business is equally important, as well as the property being insured. For example, a company should anticipate paying more for coverage if it stores or transports property that is particularly valuable or vulnerable to loss or damage.

Coverage limits also impact cost, with higher limits and lower deductibles leading to higher rates. Additionally, companies can sometimes control their cost if they only need coverage periodically. If they can control how frequently they transport goods or equipment, for instance, they can reduce the times when they need coverage.

All things considered, most businesses that need just basic inland marine coverage can often find coverage for just a few hundred dollars per year. Businesses that often transport expensive equipment between multiple job sites, such as construction companies or engineering firms, can expect to pay thousands or even tens of thousands of dollars per year to protect their equipment.

Get a customized quote and discuss price points with an insurance professional for free!

How much coverage do I need?

Here are three simple steps to help determine the right amount of inland marine coverage for your business:

Determining the amount of coverage you need for your business can be daunting, but thankfully, help is available. The LA Times Business Insurance Comparison Tool can help you figure out what type and how much insurance coverage you should get for your business. All you have to do is answer a few simple questions about your business and its needs, then the tool quickly assesses your information and generates different packages outlining the types and amounts of coverage applicable to your business.

Best plans to combine with inland marine insurance

To get the most comprehensive coverage for your business we recommend combining inland marine insurance with other policy types.

These are some of the most popular options that may be a good fit for your business:

• Commercial property insurance
  Commercial property insurance—or business personal property insurance—covers property that’s permanently housed in your business, such as furniture and equipment. This would give you coverage for items stored at your main business location in addition to the insurance inland marine can provide.
• Commercial auto insurance
  If your business owns, leases, or rents vehicles for business use, commercial auto insurance can protect against any damages caused by your employees while driving. This would insure the vehicles your staff drives on top of having their contents insured through inland marine.
• General liability insurance
  General liability insurance protects you from customer injuries and property damage claims. This would give you comprehensive insurance for people and property in addition to the mobile protection inland marine can provide.
• Home-based business insurance
  Particularly for businesses based out of a home, home-based business insurance may be used to describe coverage that protects equipment or property lost due to theft, fire, or other covered disasters. Appropriate policies for home-based businesses may include general liability, professional liability, and other coverage types.

Tips for buying inland marine insurance

Buying the right inland marine insurance for your business can be confusing, but if you consider yourself an informed consumer, then using a comparison tool like the one offered by LA Times is a great starting point.

Here are some additional tips to consider before buying coverage:

• Bundling different types of business insurance such as property, commercial auto, and inland marine together can help you save on cost.
• Don’t focus only on the cost. Be sure to review the coverage to determine the best policy for you.
• Remember that your particular risk profile will affect the amount of coverage required, so ensure you have the premium and deductibles that fit your needs.
• Don’t be afraid to ask questions and talk through any concerns with an insurance agent—they’ll know how to identify the right-level protection and provide guidance on meeting all of your business needs.