Inland marine insurance is not a catch-all. Rather, it’s a way to cover materials and equipment for contractors. If you’re a contractor hired for a job, it is your responsibility to keep everything from your building materials to any special equipment safe and secure.
It is different from builders risk insurance in that the coverage follows you wherever you go. That means your equipment will be protected on its way to and from the job site. Builders insurance generally protects you from incidents that are out of your control on the actual job site, including natural disasters, fires, etc. Builders insurance is also a long-term solution, while inland marine insurance covers you on a day-to-day basis while you’re working.
It is also different from property insurance. As a contractor or builder, you likely already know the importance of such things. Property insurance won’t suffice if you have equipment that is damaged during transportation.
What Is the Point of Inland Marine Insurance?
The actual name ‘inland marine insurance’ can be confusing. It has nothing to do with the sea – at least, not anymore. But, the name itself stems from a time when most manufacturing goods, tools, and materials were hauled via ship. Today, trucks and trains are the main manufacturing shipping providers. But, the name has stuck.
Inland marine insurance is different because, as stated above, it will protect your equipment to and from a job site, rather than only covering you in one particular location.
So, if you are a contractor or work in construction, is inland marine insurance really necessary?
Simply put, the answer is probably yes.
But, it depends on the type of work you do. Inland marine insurance is truly meant for those who are constantly on the go for their job, or who require tools, equipment, or machinery to be delivered on a consistent basis. If you’re only working on one site and everything you need is right there, you may be better off getting a different type of coverage.
On the other hand, if you consistently have equipment and tools coming into the job site, inland marine insurance is something you should seriously consider in order to protect those valuable materials.
As you can see, inland marine insurance is not a catch-all. There are other types of insurance to consider, and inland marine doesn’t cover things when they aren’t in transit. But, if you frequently expect your equipment to be on transported on the ground, it’s important to have your bases covered.
Still have questions? That’s okay! Going through the insurance processes as a contractor can often feel overwhelming.
If you want to learn more about inland marine insurance or any other types of commercial equipment insurance, feel free to contact ENGS Insurance Agency for more information or to learn more about which type of coverage is right for you. We are a leading provider in the country when it comes to insurance solutions, and our team of experts will be happy to work with you.