Inland Marine Insurance Advice

Inland marine coverage is insurance for mobile equipment such as fork lifts, cranes, generators, backhoes and bulldozers. It can also be used to insure fine arts and property owned by others in your care - computers at a computer repair shop or property left with a dry cleaning company. Cargo insurance is also part of inland marine insurance.

Coverage Considerations:

How is the property valued? Most inland marine insurance policies provide coverage on a depreciated basis. Consider buying replacement cost coverage.

Consider high deductibles to control premium - $1,000 should be the minimum deductible for any business.

What are the perils (causes of loss) covered by the policy?

Some policies have exclusions for property used on or over rivers, lakes and the ocean.

Some policies have limitations for damage caused by exceeding weight restrictions on cranes and loaders.

If the equipment is vital to your operation and difficult to replace, consider coverage to pay for a temporary rental.

Beware of policies with penalties for failure to buy enough insurance - called coinsurance. Many policies require you to buy insurance equal to the full value of the equipment. Failure to do so could result in a substantial penalty at the time off a loss.

Theft of construction equipment is becoming almost an industry. How can you protect equipment on your job sites?

Loss caused by mechanical breakdown is usually excluded.

Many inland marine policies exclude property leased or loaned to others.

In cargo insurance beware of policies that exclude mechanical breakdown. Loss of a refrigeration unit can be devastating. Also watch for limitations on the types of cargo or the location of shipments.