What if you own a construction company and your equipment is stolen from a job site overnight? What if you are transporting expensive materials to your company storage facility and it is damaged in a multi-vehicle collision on Route 431? What if your company is doing art restoration work on a valuable painting owned by a client, and it is destroyed in a fire?
These are all examples of times that having an inland marine insurance policy can protect your company’s finances. Talk to a local independent insurance agent to learn more about this important and versatile coverage.
What Is Inland Marine Insurance?
Inland marine insurance is a type of commercial property insurance that is designed to cover loss or damage to business-owned products, materials, or equipment whenever they are in transit over land or while they are being temporarily stored in another location, such as at a job site or in a warehouse.
Who in Alabama Needs Inland Marine Insurance?
Many of the businesses located in Alabama can benefit from having inland marine insurance. You should strongly consider adding this coverage your business insurance policy package if your business engages in the following.
- Works off-site
- Moves goods and products from one location to another
- Frequently ships high-value products or materials
- Has temporary care, custody, or control of your customers’ property
- Stores products or inventory in an off-site warehouse or storage facility
Examples of the types of companies that frequently purchase inland marine insurance include the following.
- Construction firms
- Transportation companies
- Technology companies
- Vending machine companies
- Art dealers and gallery owners
- Photography studios
Talk to a local independent insurance agent for help determining whether an inland marine insurance policy is a good fit for your Alabama business.
How Much Does Inland Marine Insurance Cost in Alabama?
Costs for inland marine insurance can vary significantly from one business to the next. They may range from as low as $250 a year to well over $10,000 a year. The average cost for a policy is about $2,500 a year.
When calculating the price of your premiums, insurance companies will take into consideration several factors such as the following.
- The type of business you own
- The value of the property being insured
- Where and how often this property will be transported
- The crime and collision rates in the vicinity of your business
- Your company’s claims history
To find out how much this coverage will cost for your business, you will need to contact a few competing insurance companies to request customized quotes. Independent insurance agents can save you time by doing this on your behalf.
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What Does Inland Marine Insurance Cover?
Inland marine insurance covers your business’s high-value portable property when it is in transit over land, such as by train, truck, or van. It can cover against damage, destruction, and theft.
You can also add specialized coverage to your inland marine insurance such as the following.
- Bailee's insurance: This covers property belonging to your clients or customers whenever it is in your company’s custody, care, or control.
- Exhibition and fine art insurance: This is particularly important for galleries and studio owners and for businesses that bring valuable demo products to expos and conventions.
- Builders risk insurance: This protects the structure of building being constructed or renovated as well as your company’s materials and equipment while they are stored at the job site.
- Cargo insurance: This can cover products your customer’s have purchased from the time you ship them from your company until they arrive at their destination.
A local independent insurance agent can do a complete risk assessment of your business and can identify any ways that inland marine insurance can protect it.
What Does Inland Marine Insurance Not Cover?
Inland marine insurance does have some limitations. For instance, it will not cover the following.
- Property that has been intentionally damaged
- The vehicles being used to transport the items
- Cargo that is damaged while being transported over the ocean (this requires marine insurance)
- Company-owned property that is damaged while at your place of business
For more information about what your inland marine insurance policy will and will not cover, be sure to consult a local independent insurance agent.
What Is Personal Inland Marine Insurance?
There is also a policy called personal inland marine insurance, which is designed for individuals rather than businesses. It can cover your most valuable portable property if your homeowners insurance is too limited to provide ample coverage.
Personal inland marine insurance does not require that the property is in transit at the time that it is lost or damaged in order to cover it.
How to Get the Best Inland Marine Insurance Policy for Your Alabama Business
Shopping for the right inland marine insurance policy can be time-consuming and, at times, confusing. But it doesn’t need to be.
When you work with an independent insurance agent, your agent can answer your insurance-related questions, ensure that your business does not have gaps in its property coverage, and help you find a suitable policy at a competitive price.
There are more than 330 independent agents in Alabama, so it should be easy to find one with an office near you. Set up a one-on-one consultation with an insurance agent today to learn more about inland marine insurance as well as all of your other business insurance coverage options.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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