What Is Inland Marine Insurance?

Inland Marine Insurance is a specialized type of business insurance that provides protection for property that is transported, used off-site, or stored at different locations. Despite the name, it doesn’t refer to marine or ocean-based risks. 

Historically, the term originated from goods being transported via inland waterways, but today, it refers to coverage for property moving over land. 

Inland Marine Insurance is crucial for businesses that regularly move goods, equipment, or materials from one place to another or store property at different job sites or locations.

Who Needs Inland Marine Coverage?

If your business involves transporting goods or using equipment at various locations, Inland Marine Insurance is essential. This coverage is particularly important for businesses in industries such as construction, contracting, retail, technology, and logistics. 

For example, construction companies frequently move valuable tools and equipment between job sites, while retail businesses often ship goods between warehouses and stores. 

Without Inland Marine Insurance, these businesses would be vulnerable to financial loss if property is damaged, lost, or stolen during transit.

Are you looking for Business Insurance Coverage? At The Huneycutt Group, we represent over a dozen companies and brokers to help you find the coverage you’re looking for, at the right price.

Does North Carolina Require Inland Marine Insurance?

There’s no state law in North Carolina that mandates inland marine property insurance for all businesses. However, having it is highly recommended.  It offers significant financial protection for your business assets while they’re on the move. Consult with an agent at The Huneycutt Group to understand your specific needs and explore the coverage options available in North Carolina.

Two types of business insurance that are mandatory by state law are:

• Workers’ compensation insurance
• Liability insurance for your commercial vehicle

What Does Inland Marine Insurance Cover?

This insurance is designed to cover property that is not confined to a single, fixed location. Here are a few common categories of property typically protected under Inland Marine Insurance:

• Tools, equipment and fine art: Any valuable equipment that is moved between job sites, such as construction machinery, solar panels, IT equipment, medical equipment, specialized tools and even fine art and collectibles.
• Goods in transit: If your business frequently ships or transports inventory, Inland Marine Insurance covers damages or loss while the goods are on the move.
• Property at temporary locations: If you store property at job sites, vendor locations, or other temporary spots, Inland Marine Insurance can ensure coverage during these periods.

Who Is Inland Marine Insurance For?

Inland Marine Insurance policies are tailored for businesses with mobile property or assets stored off-site. Industries such as construction, manufacturing, transportation, and technology companies often benefit from this type of coverage. 

It’s particularly useful for:

• Contractors and builders: They transport tools, machinery, and materials between various sites, which increases the risk of theft or damage.
• Retailers and wholesalers: Businesses that transport goods between warehouses and stores need coverage for potential loss or damage during transit.
• Technology service providers: IT firms and businesses that rely on expensive, portable equipment to serve clients at off-site locations.

What Does An Inland Marine Policy Cover?

An Inland Marine Insurance policy provides coverage for movable or specialized property that standard commercial property insurance might not fully protect. Typical coverage includes:

Physical Damage

Protection against accidental damage to equipment, tools, or goods.

Theft

Inland Marine Insurance helps protect your business from losses due to theft, especially in situations where property is in transit or stored at an unsecured location.

Equipment Breakdown

Some policies can cover mechanical breakdowns or malfunctions of specialized equipment, helping your business recover more quickly.

What Factors Affect Inland Marine Insurance Rates In North Carolina?

Several factors influence inland marine insurance rates in North Carolina, affecting the overall cost you’ll pay. 

North Carolina-Specific Factors

• Reinsurance costs: Reinsurance is how insurance companies manage risk by spreading it among themselves. If reinsurance costs are high in North Carolina, it might be reflected in your premium.
• State regulations: North Carolina’s insurance regulations can influence the way insurers set rates, potentially impacting your final premium.

Business-Related Factors

• Industry: Businesses in high-risk industries (like manufacturing or construction) typically face higher premiums due to the potential for accidents or property damage.
• Claims history: A history of past claims can increase your rates as it indicates a higher risk profile to the insurer.

Coverage-Related Factors

• Coverage amount: The value of your property and its contents directly affects the premium. Higher insured value translates to a higher premium.
• Deductible: A deductible is the amount you pay out of pocket before insurance kicks in. Choosing a higher deductible can lower your premium, but it also means you’ll shoulder more cost in case of a claim.
• Additional coverages: Adding endorsements for specific perils like flood or earthquake damage will increase your premium but provide broader protection.

It’s important to note that these are just some of the common factors. The specific weight each factor carries can vary depending on the insurance company. To get an accurate idea of how much your business property insurance will cost in North Carolina, it’s best to consult with a local insurance agent. They can assess your individual needs and provide quotes from different carriers, helping you find the best coverage at a competitive rate.