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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 products, materials and equipment being transported by land. This insurance policy is also responsible for covering materials that have been warehoused by a third party. Inland Marine Insurance was created to protect 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:
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 has been specifically designed to protect your interests in materials, equipment and fixtures awaiting installation, or transportation to the construction site. Your Builder’s Risk policy usually has a cover limit that is determined using an estimate of your construction budget.

What does my Builder’s Risk policy cover?

Your Builder’s Risk policy covers:

  • Stolen tools
  • Stolen equipment
  • Stolen fixtures from the property in construction

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?

Any party with an insurable interest in the property is fully covered by your Builder’s Risk policy. 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 888-676-0923 to get a free quote.

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