What’s the difference between Inland Marine and Property Coverage?
Property insurance primarily covers physical assets at a fixed location, while Inland Marine insurance focuses on property in transit or at off-site locations. Most property away from your premises is typically not covered under the normal Commercial Property coverage and Inland Marine coverage may be more appropriate.
Inland Marine Coverage
Inland marine insurance is property insurance for property in transit over land, certain types of moveable property, instrumentalities of transportation, and legal liability exposures of bailees. Many inland marine insurance forms provide coverage without regard to the location of the covered property; these are sometimes called “floater” policies.
Inland marine insurance covers:
- Property used in the insured’s business or property of others for which the insured has assumed written liability.
- Mobile machinery, equipment, and tools the insured uses in their trade.
- Items leased/rented FROM others, as well as items leased/rented TO others.
- Items are covered wherever they are within the coverage territory: jobsite, in transit, business premises, etc.
Target Risks: Contractors; both environmental and non-environmental contractors that use/transport equipment, construction companies, agriculture businesses, landscaping businesses, companies that have data processing as part of their operations, and any insured that has movable/mobile equipment.
Property Insurance
Property insurance covers:
- Covers damage to buildings and their contents at a specific, fixed location.
- Property insurance does not cover currency, vehicles, land, and electronic data (except when endorsed).
- Causes of loss may include: Fire/lightning explosion, wind/hail, smoke, spacecraft, riot, vandalism, sprinkler leakage.
Property enhancements: Inflation guard, law ordinance, electronic data processing equipment, sewer back up; Business Income/Extra Expense –financial compensation if insured’s business shuts down due to property loss, must relocate, pause operations; Replacement Cost Value (RC) –cost to replace good; factors in inflation; doesn’t factor depreciation vs Actual Cash Value (ACV) –cost of good minus depreciation; Boiler and Machinery –coverage for the equipment on site at property –elevators, boilers and furnaces, other internal items; Rigger’s Liability / Bailees Coverage –movement/care/custody/control of goods of others.
Property exclusions: ordinance of law, earth movement, governmental action, nuclear hazard, utility services (no power), war, flood, fungus and bacteria (giveback if from fire/lightning or by endorsement).
For more information or to discuss a specific account, contact us today.