What Is Inland Marine Insurance?

Inland marine insurance is a kind of insurance policy that protects property transported via land or stored off-site. Unlike standard policies, it secures equipment, tools, machinery, and other valuable items that are employed at work sites stored in warehouses, or moved by trucks or trains.

Inland marine insurance is essentially an evolution of marine cargo insurance, which was designed to secure freight transport by sea. Conversely, inland marine insurance is for risks associated with land-based transit and storage. This inland transit insurance coverage is curated for businesses that frequently move assets between locations.

Often also called inland and marine insurance, this insurance is essential for businesses that handle movable or high-value property. So, whether you are shipping goods, require the use of specialised equipment at various sites, or storing someone else’s property, a robust inland marine insurance policy offers customisable protection for events where standard property insurance is inadequate.

Now that we understand what is inland marine insurance cover, let us see who can benefit from this policy.

Inland and marine insurance is ideal for businesses and individuals who handle movable or high-value property. Here is who the policy is beneficial for:**

-Businesses transporting equipment or goods: The policy safeguards specialty items such as computers, construction tools, medical devices, photography gear and more.

-Businesses shipping high-value materials: Ensures that items that are frequently moved between locations are adequately secured.

-Individuals shopping online: A marine insurance policy can secure purchased goods during transit until the items are delivered.

-Businesses managing others’ property: Provides coverage for warehouses, repair shops or businesses responsible for managing and safeguarding third-party goods.

-Companies with off-site assets: Ensures appropriate protection for equipment or materials that have temporarily been stored away from the main premises.

Once you know what inland marine insurance is, the next step is to determine how much the policy would cost. Insurance seekers must note that the cost of inland marine policy relies on several factors and there isn’t a universal price. Here are the factors influencing the premiums of the policy:**

-Value of Items: High-value goods and expensive equipment will drive up the cost of premiums for the policy.

-Types of Items: Fragile and high-risk items such as electronics or fine art, will cost more than durable goods as they are at a greater risk of sustaining damage.

-Frequency of Transportation: Frequent transit also increases risk leading to increased inland transit insurance coverage costs.

-Risk of Damage: Factors such as mode of transport, storage conditions and trade routes also affect premium costs.

-Location: High-risk routes and regions that are prone to theft and natural disasters lead to higher premium charges.

-Claims History: A history of frequent claims can further drive up the cost of premiums.

Despite varying costs, inland marine cost, including marine cargo insurance, is essential for ensuring goods. This is especially true if there are high-value and specialised items during transit or off-site storage.

To understand the full scope of what is inland marine insurance cover, insurance seekers must be aware of the policy inclusions and exclusions.

Inland marine insurance provides various policy types that are designed to take care of specific needs, ensuring wholesome protection for businesses and individuals:**

-Marine Single Transit Inland Policy: This extends protection to freight or merchandise for a single transport operation, from origin to destination. This is inclusive of goods transported via trucks, trains and other modes of road transport.

-Contractor’s Equipment Floater: Offers coverage of contractors’ tools and equipment against damage, theft or loss. This protection is also applicable across job sites, in transit or at on-premise locations.

-Electronic Data Processing (EDP) Insurance: It offers protection for electronic devices such as laptops, desktops and mainframes against risks such as theft, fire or electrical disturbances.

-Bailee Insurance: Safeguards businesses from liabilities that result from loss or damage to customers’ property under their care. For instance, this includes dry cleaners or repair services.

-Accounts Receivable Insurance: Extends a reliable financial safety net by protecting businesses from losses related to damaged accounts receivable records or customers’ non-payment due to covered perils.

-Installation Floater: Offers protection for equipment, materials and supplies during transit or at work sites, mitigating risks such as theft or damage before installation.

Insurance seekers may often get confused between the two kinds of insurance policies. Although both inland and marine insurance offer coverage for goods in transit, their focus and scope are significantly different.

-Ocean Marine Insurance

This policy is designed to secure goods that are transported via sea securing freight from the time it is loaded onto the ship to the time it is unloaded at the destination port. It secures goods from threats such as storms, piracy, or damage during ocean transit.

-Inland Marine Insurance

Complementing ocean coverage, inland marine insurance secures goods from their pick-up point and secures them during transit over land via trucks, trains or other vehicles. It ensures that the items are covered until they reach their final destination and are safely stored.

For businesses that are concerned with international shipping, the combination of these policies is imperative for reliable financial security. On the one hand, ocean marine insurance takes care of the overseas portion of the journey, whereas inland marine insurance protects goods during domestic transit or storage. Together, they offer seamless protection for assets, filling any gaps in coverage and ensuring financial security.

By securing both marine cargo insurance types, businesses can mitigate risks across every stage of the freight’s journey from origin to destination.

Here are some important points to keep in mind about inland marine insurance:

• Inland marine insurance is designed to safeguard movable property such as tools, equipment and goods in transit or stored off-site.

• This policy offers coverage for high-value items that are excluded from standard property policies such as construction tools and equipment, medical devices, electronics, etc.

• The goods are secured from natural disasters and risks such as theft, damage during transit, fire and more.

• Inland marine insurance complements ocean marine insurance for wholesome protection for international and domestic shipping.

• Businesses with mobile or high-value property benefit significantly from inland marine policy coverage.

Inland marine insurance is important for protecting movable property, high-value equipment, and goods in transit. It efficiently fills the gaps that are left by standard property policies, offering peace of mind for business entities as well as individuals.

So, whether you require coverage for tools, electronics or fine art, or are complementing marine cargo insurance for well-rounded protection, choosing the right marine insurance policy ensures your assets are appropriately protected from unpredictable risks.

For reliable and tailored insurance solutions, TATA AIG provides extensive options right from transit insurance to wholesome marine insurance policies to secure valuable goods and property at every stage of the journey.

-Does inland marine insurance cover international transit?

No, inland marine insurance is exclusively designed for domestic road transport. For international shipments, consider combining it with ocean or air cargo insurance.

-Do small businesses also require inland marine insurance?

Yes, small businesses that frequently transport goods or hold customers’ property, such as photographers or repair services, can benefit from inland marine insurance.

-Are there deductible options in inland marine policies?

Yes, insurance companies often allow policyholders to opt for deductible amounts, which can influence premium costs.