When Inland Marine Insurance Matters for Your CNY Business

Running a CNY business means keeping your valuable equipment safe, whether it’s on the road or at a client’s location. Standard insurance might not cover everything you need. That’s where inland marine insurance steps in, offering personalized protection for your prized possessions.

Here at the Horan insurance agency, we’ve been navigating the complexities of Inland Marine Insurance for over a decade. We understand that CNY businesses rely on their equipment, and we’re passionate about ensuring their security.

In this article, we’ll explain the benefits of inland marine insurance and explore real-life examples of how it protects CNY businesses like yours.

Inland Marine Insurance Goes Beyond Off Premises Coverage

If you own a business that involves moving or storing valuable items, you may need more than just off premises coverage. 

Off premises coverage protects your property when it’s away from your main location, such as at a job site or in transit. But it may not cover everything you need. That’s where inland marine insurance comes in. Inland marine insurance is a type of coverage that gives you more flexibility and control over the value of your items. 

It allows you to insure specific items for their full replacement cost, without any depreciation or co-insurance. It also removes many of the exclusions that may apply to your primary policy, such as 

1. theft, 
2. vandalism, or 
3. natural disasters. 

Inland marine insurance is especially useful for businesses that have expensive or specialized equipment, such as excavators, bobcats, or generators. This means that your equipment is covered for any type of damage or loss, except for mechanical breakdown. That is a different kind of risk that requires separate coverage.

Not to Be Confused with Marine Insurance

Inland marine insurance is not the same as marine insurance, which covers ships/boats and cargo transported by sea. Inland marine insurance originally referred to coverage for goods being transported by inland waterways (rivers, lakes, canals, etc.), which is why it has “marine” in the name. 

Over time the definition expanded and today inland marine insurance can cover a wide range of movable property on land and air, not just transported by water. So inland marine is quite different from marine insurance now despite some terminology overlap. 

What Are the Benefits of Inland Marine Insurance?

Inland marine insurance is also known as open peril coverage. This means that it covers almost any risk that could damage or destroy your property, except for those that are specifically excluded, like wear and tear. The coverage is especially useful for protecting valuable or unique items that aren’t covered by your standard property insurance. 

For example, theft and misplacement are two major risks it can cover. If you own a CNY business that relies on expensive or specialized equipment, such as an excavator, a bobcat, or a skid steer, you may want to consider inland marine insurance. 

You can list each item separately on your policy, with its own value and premium. The premium will depend on the type of item, the value, and the likelihood of loss. Generally, items that are harder to steal or misplace will have lower premiums than items that are easier to lose or damage. 

Inland Marine Coverage for Items Not Directly Related to Your Business

Another example of items that may benefit from inland marine insurance are artworks. If you have invested in some fine art for your office space, such as paintings, sculptures, or antiques, you may want to protect them with inland marine insurance. Artworks can have their own appraised value and be protected from covered perils. 

If you seek coverage for items that aren’t directly related to your business, but that enhance your image or reputation, inland marine insurance is the answer. It can give you composure and security for your valuable or unique property.

Choose Your Deductible

Another benefit of using inland marine insurance is that you can choose your own deductible for each item that you cover. A deductible is the amount that you have to pay out of pocket before the insurance company pays the rest of the claim. 

For example, if you have a $1000 deductible and damage to your item costs $5,000, you have to pay $1,000 and the insurance company pays $4,000. By choosing a lower deductible for your inland marine items, you can reduce your out-of-pocket expenses in case of a loss. 

When to Use Inland Marine Insurance for Specific Items

We’ve shown that inland marine insurance can cover a variety of situations and items that aren’t adequately protected by other policies. However, you may wonder when it makes sense to use inland marine insurance for a specific item, rather than including it in your business property coverage. 

The answer depends on several factors, such as the nature, value, and importance of the item, as well as the terms and conditions of your carrier.

Actual Cash Value vs. Replacement Cost

One factor to consider is the level of coverage you want for your item. Most business property policies only cover your items at actual cash value, which means that they will deduct depreciation from the amount that they pay you in case of a loss. 

This can result in a significant gap between what you paid for the item and what you receive from the insurance company. If you want to avoid this gap, you may want to use inland marine insurance, which can cover your items at replacement cost, which means that they will pay you the amount that it would cost to buy a new item of the same kind and quality, or on the agreed value if the item is “priceless.”

Inland Marine Coverage for Detached Trailers

Another factor to consider is the location and mobility of your item. Some items, such as trailers, are not registered with the DMV and may not be covered by your commercial auto policy once they are detached from the vehicle that is towing them. 

This means that if something happens to your trailer while it’s parked or unhooked, you may not have any coverage at all. 

To prevent this, you may want to use inland marine insurance, which can cover your trailer regardless of where it is or whether it’s attached to a vehicle or not.

The Convenience of Inland Marine Insurance as an Endorsement

A third factor to consider is the availability and convenience of your carrier. Some carriers may not offer inland marine insurance as a separate policy, but as an endorsement on your existing policy. This means that you can add inland marine coverage for specific items to your business property policy without having to buy a new policy. 

This can save you time and money, as well as simplify your insurance management. However, not all carriers offer this option, so you may have to check with your agent to see if this is possible for you.

Safeguard Your Business Equipment and Valuable Items with the Right Inland Marine Coverage

We’ve covered the immense value of inland marine insurance for protecting your equipment and giving you composure and security. Without this specialized protection, you risk paying thousands out of pocket if disaster strikes. Or worse, you may lose your precious machinery for good, crippling your business operations.

By understanding exactly how inland marine insurance shields what standard policies don’t, you can safeguard your livelihood. 

Work with us to customize robust inland marine insurance that fits your unique situation. 

We’re passionate about securing the specialized equipment that keeps your business running. With the proper inland marine coverage in place, you can pursue growth and opportunity with confidence, knowing that your essential assets are protected.

The alternative is needless vulnerability. 

Don’t let gaps in your coverage place you in financial jeopardy. Protect what matters most with inland marine insurance tailored for you. Our expertise helps CNY businesses like yours make smart decisions, find the right inland marine fit, and thrive without fear of equipment losses sinking you. 

By planning ahead, you demonstrate prudence and responsibility for the future of your business. Take the next step by clicking the Get a Quote button below. One of our insurance specialists will reach out to discuss your policy options.