Common misconceptions with inland marine insurance
Common misconceptions with inland marine insurance | Insurance Business America
Insurance News
Common misconceptions with inland marine insurance
Confused about this unique space? Here’s everything you need to know…
Insurance News
By
Falvey Insurance
When it comes to insurance coverage, many contractors underestimate the value of inland marine insurance. After all, there is often some confusion around what exactly it covers and whether it’s actually necessary.
In short, inland marine insurance protects against many of the exposures that contractors face. Perhaps the most important aspect of this policy is that it covers contractor equipment, tools, and inventory while in transit between warehouses, job sites, or other off-site locations. Therefore, contractors have protection against financial losses while they’re on the move.
To help clarify what this policy entails for contractors, we’ve addressed some common misconceptions of inland marine insurance below.
Misconception: Inland marine coverage isn’t necessary for contractors who already have property insurance
While many property insurance policies cover goods while they’re stored in a specific location, like a warehouse or construction site, that usually doesn’t include shipments that are in transit. That means if a contractor gets into an accident while transporting equipment between job sites, a standalone property insurance policy might not cover those risks.
However, inland marine insurance does cover shipments while in transit, making it crucial coverage for contractors who are frequently on the move with their property, tools, and equipment. An inland marine policy protects against exposures on the road and railways, such as collisions, fires, theft, and loading/unloading accidents.
Misconception: Inland marine insurance doesn’t include builder’s risk cover
On the contrary, many inland marine insurance policies actually cover builder’s risk insurance. This means contractors’ tools, equipment, and building materials are protected against exposures during the construction process at a job site (the builders’ risk portion of coverage) and also during transit (the inland marine insurance portion of coverage).
Because these policies overlap, contractors have more peace of mind knowing their equipment is insured during every stage of the job.
Misconception: Inland marine insurance is the same as general liability insurance
Unlike a general liability policy, inland marine insurance does not protect against injuries, property damage, libel, or accidents associated with negligence. Inland marine insurance is a type of property insurance, meaning contractors will need additional liability coverage if they are concerned about third-party liability claims.
Misconception: Inland marine insurance covers water transportation
Despite its name including the word “marine,” inland marine insurance typically does not cover water transportation. Inland marine insurance is actually an off-shoot of ocean marine insurance—one of the oldest forms of insurance—that covers shipments over waterways. The “inland” option was only added once rail and motor vehicle transportation became more popular means of transportation.
Therefore, if a contractor wants protection for water transit, they’ll need to pair their inland marine insurance with a policy that offers over-seas coverage.
As with any insurance policy, inland marine insurance is not an end-all-be-all solution, so it’s crucial for contractors to understand any gaps or overlaps in their coverage. At Falvey Insurance Group, we offer an inland marine insurance policy that includes builders’ risk, contractors’ equipment, and commercial output coverage. To learn more, contact us today.
Find out more about the inland marine insurance space via this whitepaper.
About Falvey Insurance Group
Falvey Insurance Group is one group with many solutions, distinguishing itself through its robust product offerings that extend beyond premium coverage, providing clients and broker partners with a suite of added-value services at no additional cost. Our commitment to excellence over decades has earned us a reputation for exceeding client expectations and prioritizing their needs. A broker agreement with Falvey opens up access to our comprehensive product lineup and seamless claim handling and loss control experience, backed by our world-class service from any of our underwriting teams. Learn more about Falvey at falveyinsurancegroup.com.
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