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The Difference between Builder’s Risk and Inland Marine Insurance

For contractors,
the difference between investing in Builder’s Risk Insurance and Inland Marine coverage might not be relevant. Maybe it is better to have them both. But before you can make this decision, you need to know more about these policies.

What is Inland Marine Insurance?

Inland Marine Insurance covers the transportation of products, materials and equipment by land. This insurance policy is also responsible for covering materials put in a warehouse by a third party. Inland Marine Insurance protects materials in transit from risks such as collision and theft. While Inland Marine Insurance is efficient in protecting your materials while they are in transit, it does not cover the construction site or vehicle transporting the materials.

Does your business need an Inland Marine Insurance policy?

While deciding whether Inland Marine Insurance is for you, your biggest consideration should be if you need to cover the following:
The property in transit: This is property that you transport over land from one location to another.
Property stored off site: This includes property that you keep at a warehouse or temporary storage facility.
If the answer is yes, then an Inland Marine Insurance policy may best suit your needs.

What is Builder’s Risk insurance?

Builder’s Risk Insurance is a policy that protects your interests in materials, equipment and fixtures awaiting installation, or transportation to the construction site. Determine the cover limit of your Builder’s Risk policy using an estimate of your construction budget.

What does my Builder’s Risk policy cover?

Your Builder’s Risk policy covers:

  • Stolen tools.
  • The stolen fixtures from the property in construction.
  • Stolen equipment.

Damage or loss of your tools, equipment, materials from the worksite due to:

  • Vandalism.
  • Fire.
  • Lightning.
  • Explosions.

Who is best suited to a Builder’s Risk policy?

Your Builder’s Risk policy covers any party with an insurable interest in the property.For example, if you are a roofer and your tools or materials are stolen onsite, you will be covered.

What’s the big difference?

While both insurance policies are tailored to protect equipment and materials, they hold slight differences. An inland marine protects your shipment while in transit while a builder’s risk insurance policy protects your equipment and materials when they are on the site or awaiting transportation to the site.

Which policy should I choose?

When choosing your insurance policy, it is important that you consider your needs. If you are transporting items between sites, then Inland Marine Insurance may best suit your needs. A Builder’s Risk policy, on the other hand, would suit you if you are a contractor at the site and wish to protect your tools, equipment and materials, during the construction.

We focus on helping you find a policy that allows you to thrive. Call us today on 888-819-1228 to get a free quote.

Avatar for John Brown
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.