subject: Commercial Insurance Can Include Inland Marine Coverage [print this page] Commercial insurance is used for businesses to protect the property, assets, and people of their companies. This includes a variety of coverages that are available under this banner, including Property and Liability, Directors & Officers Liability, Cyber Liability, Employment Practices Liability, and Workers Compensation.
Another type of commercial insurance coverage is Inland Marine, which is useful for companies that have goods in transit; have property in their care, custody, and control; have moveable equipment, among others. Basically, Inland Marine insurance provides coverage for loss exposures that cannot be conveniently or reasonably confined to a fixed location.
Many insurance companies offer Inland Marine policies, and an independent insurance agent can discuss the options with their clients. Often these policies are typically purchased as a supplementto an existinginsurance policy.
Inland Marine policies: A very useful business tool
Inland marine insurance applies to the goods and property associated with that business, wherever they might be. For example, when a contractor's tools are stolen out of a truck or off a work site, they would be covered by inland marine insurance (contractors equipment coverage). Likewise, this type of insurance would cover goods damaged in transit across dry land.
Business owners can also cover individual buildings and other types of property with this same type of insurance. For example, a Builders' Risk policy, a form of Inland Marine insurance, provides coverage for materials and supplies that will become a permanent part of the buildings or structures, foundations, scaffolding, temporary or permanent fencing and other temporary structures.
Other types of Inland Marine policies include: An Installation Floater, which provides coverage for building supplies during transport and installation, including theft from job site; Electronic Data Processing (EDP), which provides coverage for damage or loss to insured's computer equipment, software, and information; and Accounts Receivable, which covers money due to the insured when there is a loss of accounts receivable records.
The origins of Inland Marine insurance
This type of insurance allegedly started with Lloyd's of London, a venerable provider of insurance that dates back to the 17th century. Lloyd's initially insured the cargoof ships. Once the items arrived at port, policyholders were held responsible for whatever happened to their goods on land. Eventually, coverage expanded to include: cargo after it had been offloaded, cargo in transit, and goods held in storage or holding. By doing so, the company was now providing more complete coverage to policyholders.
Today, people who are nowhere near the ocean and have no intention of carrying anything by ship often use inland marine insurance.
by: Joan A. Martinez
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