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Inland Marine Coverage

Inland marine coverage provides insurance to repair and/or replace items that get lost or damaged in transit by land, seas and air. If you have valuable items that are in transit and they get lost or damaged, property insurance will not suffice. You need inland marine coverage to fill this gap, because property insurance will only cover your items when they are in your business location or a stationary location. Click here if you need to get inland marine coverage.

As a contractor, inland marine insurance will come in handy to protect your tools and materials while they are in transit from your worplace to worksite. For example, as a roofer, you may need to transport shingles or slate materials to your clients worksite. Becasue the materials have left your place of work and are in transit, your property insurance will not cover the shingles and slate. Commercial auto insurance will not cover the materials either because it only covers the vehicle and those that are hurt in an accident. You would need inland marine coverage to insure the materials being transported to the worksite.

Origin of inland marine coverage

Inland marine coverage has been around for a very long time. It started in the 17th century when materials were often shipped by cargo over seas. Insurance companies would only cover cargo on ships as they were transported across the ocean. Policy holders always got angry when their shipments encountered damages in the course of transportation, but with the help of this policy, there was now a way to replace and repair their damaged items. As time went by, insurance providers adapted inland marine coverage to cover items transported by sea, land and air, as transportation technologies advanced. Although titled “marine,” this type of insurance now includes are forms of transiportation.

Types of protection of inland marine coverage

  • Insurance coverage can be written for individual items. An example is when a piece of artwork is more valuable than any other personal item; inland marine coverage will be able to protect such an item. This type of coverage can also provide blanket protection for high value items instead of listing them individually.
  • This type of coverage can also protect expensive items on an agreed-value basis. In this case, when a loss occurs, the policy holder is paid off instead of attempting to replace the item.
  • This type of coverage can also protect high-valued items that would not be covered by normal property insurance plans. Personal inland marine plan works well for protecting valuable items.

In cases where this coverage provides builder’s risk, blanket protection is when settlements are negotiated on individual basis, and account factors like depreciation and rarity are used to determine a final payout. In regards to repairs, it can only be made if it cost less and would not have significant impact on the value of the insured item. If repairing a damaged item will cost more, it is better for the item not to be repaired, but paid off. In this case, payment would be made to coverage limits and deductibles would be minus instead of declaring a total loss.

In relation to construction projects, general contractors, plumbers, roofers and other sub-contractors should also get inland marine coverage because one can never tell when casualties can occur. This type of coverage offers builder’s risk, contractor equipment, motor truck cargo and so much more as regards to construction projects.

Before you decide to take inland marine coverage as a general contractor or a sub-contractor, you should make sure that the provider’s definition of the inland marine insurance fits with your plan. You should not wait until you are in a situation where you will be informed that your coverage cannot cover some aspect of your agreed policy.

Advantages of inland marine coverage

  • It is cost-effective. When you are shopping for inland marine insurance policies, you should pay attention to the deductibles that the insurance company has to offer. Make sure that the amount your insurance company has to offer is cost-effective so that it will be to your advantage. Always make sure your insurance policy is enough to cover your losses especially when an incident occurs.
  • It is the perfect policy in the sense that it would cover things that a normal policy will not. Your insurance provider can confirm this if you ask him.
  • This policy will help protect your business against unfortunate events. But you should first discuss the matters regarding your business with your insurance provider.

The best way to make sure that you are securing your business with this policy is to ensure that you find the perfect one for your company’s needs after you have accessed several different quotes.

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Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.