Inland Marine Insurance- What Is It, and Why Do I Need It?
Many people don’t exactly know what Inland Marine Insurance means and, to be honest, when I first heard of it I thought it meant a docked boat, jet ski, or other water activity vehicle. Although the name may be a bit confusing at first, it makes a bit more sense once you understand what it means. This type of insurance covers any property that is in transit over land, certain types of movable property, transportation instruments (like bridges, roads, etc.), and property that is held by a bailee (a bailee holds a person’s property for them until the intended purpose is accomplished and then gives it back to them).
So what specifically can be included on an inland marine insurance policy? The most commonly covered items on a personal insurance policy includes jewelry, fine arts, furs, guns, musical equipment, and sports equipment. On a commercial insurance policy, it would be more common to find contractors equipment, leased property, scheduled property, valuable papers and files, and accounts receivable.
So why would you want inland marine insurance if you already have home insurance? Take a diamond engagement ring, for example. Many times people spend thousands of dollars on such an item and want to ensure that it is insured for at least it’s value, in the event that it breaks or gets lost somewhere. Meaning, if you break it at work it is not always covered by your basic home insurance. In fact, if the ring is not added onto a home policy or an inland marine policy, it may not be covered at all- and that could be thousands of dollars down the drain if the main diamond happens to pop out and roll somewhere or the band gets snapped in half.
As for commercial insurance, the explanation is a bit more simple. As a business owner, if you’re purchasing or leasing expensive equipment to take to different work sites, you want to ensure that they will be covered in the transporting process, not just at the site and at the storage location.
Many times a new insurance policy can seem scary, but your local agents are here to help. Farmington Insurance Agency wants to make insurance accessible and helpful to everyone. Give us a cann at 248-474-3511 and ask us any questions you may have about inland marine insurance, or any other kind of personal or commercial insurance.