When dealing with logistic companies, you should be wary of the potential risks involved. For instance, a truck ferrying high-value equipment can overturn, leading to a massive loss. While commercial property insurance can chip in in such situations, it won't provide sufficient coverage, mainly if your business involves frequent shipping of high-value equipment or products. To protect businesses against logistics-related risks, insurers offer a product called inland marine insurance.
Here’s a quick look at the core elements of a typical marine insurance policy.
It's easy to confuse inland marine insurance for marine insurance, which provides coverage for goods being transported over water. While inland marine insurance also covers goods in transit, it only applies to those being transported on land via trucks and trains. If such goods get damaged for some reason, the policyholder won't suffer financial loss.
We've mentioned that inland marine insurance covers high-value products or equipment in transit on land. Here is a look at the specific things covered under this policy:
Equipment under temporary care – If, let's say, a client brings their machine to your workshop for repair, and unfortunately, a fire erupts, burning all the contents of the workshop, inland marine insurance will pay for the client’s loss.
High-value items – Valuables such as antiques, collectibles, jewelry, and artwork are usually high targets of theft. To give you an idea, in September 2022, investigators recovered 27 stolen artifacts worth over $13 million from a museum in New York. Thankfully, inland marine insurance can protect your valuables from possible risks such as theft and damage while in transit.
Moveable equipment – Heavy equipment and machinery can also suffer damage while being transported. For instance, if your private ambulance has heavy medical equipment installed to be used in transit, inland marine insurance can provide coverage.
Goods stored in a warehouse – Apart from protecting items in transit, inland marine insurance can also provide coverage for goods temporarily stored in a warehouse.
There's no straight answer to this question. As mentioned earlier, commercial property insurance can extend coverage to goods in transit. If you don't ship goods frequently, a simple property coverage policy under your Business Owner's Policy will work just fine. However, if your shipping involves high-value items or frequent transport, you should consider purchasing inland marine insurance. In other words, inland marine insurance is only suitable for businesses whose operations involve a lot of shipping high-value products. Such enterprises include movers and shipping companies.
Inland marine insurance covers financial losses from perils such as fire, theft, vandalism, lightning, windstorms, sinkholes, smoke damage, water damage, and hail. Even so, it does not cover natural disasters such as earthquakes and floods. Note that this policy also excludes damages on goods stored in your main premises.
If you are looking for inland marine insurance, contact our insurance professionals today here at Bema Insurance. We will customize your inland marine insurance with the right coverages that protect your business at all times and against every risk.