Inland marine

How does inland marine insurance work for a trucking and logistics business?

The name is historical, and it has nothing to do with boats. Inland marine is a family of property coverages written for things that do not stay put. The NAIC defines inland marine coverage as coverage for property that may be in transit, held by a bailee, at a fixed location, or a movable good. In practice, that means a policy, often called a floater, that follows specified property wherever it goes, within the territory and conditions the policy sets.

For trucking and logistics, the cases that come up are:

• Tools and shop equipment that leave the shop. A mobile mechanic's diagnostic tools, welders, and air tools on a service truck. A tow operator's recovery gear, chains, and winch equipment. Many operators call these contractor's equipment or tool floaters.
• Equipment in transit. The same tools and portable equipment while being carried between a shop, a yard, and a job.
• Equipment being installed. A shop that installs equipment on customers' units, such as bodies, liftgates, or add-on systems, carries the items for a time before they are installed. Policies for this situation are often called installation floaters. Ask how the policy treats items from the time you take them in to the time the work is accepted.
• Specified equipment at a fixed location. An item that is valuable or sensitive enough that you want it scheduled on its own, such as shop diagnostic computers.
• Other people's property in your care that is not a vehicle. Some forms address property held by the insured for others, which the NAIC refers to as property held by a bailee. Ask whether that is part of your form.

Where inland marine stops and other lines begin.

• Motor truck cargo covers freight you haul for others while it is in your care in transit. It has its own page: motor truck cargo. A tool floater does not cover a shipper's load, and a cargo policy does not cover your own tools.
• Physical damage covers your tractors, trucks, and trailers. See physical damage.
• Commercial property covers buildings and the contents at a location. See commercial property.
• Garagekeepers and on-hook towing cover customers' vehicles. See garagekeepers liability and on-hook towing.

Because the lines around it overlap, the practical question is "which policy answers for this item when it is in this place." Walk your insurance agent through where the item is kept and where it goes.

What does inland marine cover, and what doesn't it?

Policies vary. Read your declarations, definitions, and exclusions. In general:

Often covered

• Loss of or damage to scheduled or described tools and equipment, such as from theft, fire, or collision, under the causes of loss the policy lists
• Property while it is being carried between locations, under many floaters, subject to territory and conditions
• Equipment being installed, under an installation floater, up to the policy's limit and for the period it describes
• Items listed on a schedule, with a stated value for each

Often not covered, or covered only with conditions

• Unlisted items. A scheduled floater covers what is on the schedule. Add equipment as you buy it.
• Theft from an unattended or unlocked vehicle. Often limited or conditional. Read the security conditions.
• Wear and tear, mechanical breakdown, and gradual damage. Common exclusions.
• Freight you haul for others. That is motor truck cargo.
• Your trucks and trailers. That is physical damage.
• Customers' vehicles. That is garagekeepers liability or on-hook towing.
• Your building and fixed contents. That is commercial property.
• Injury or damage you cause to other people. That is general liability.
• Employee tools. Tools owned by employees are often handled differently. Ask whether yours are included.

These are common patterns, not universal ones.

What affects the cost of inland marine insurance?

We don't publish prices. Cost is set by insurers and the licensed agents you work with, not by BreadRoute. These are the factors that generally move it:

• Value of what you insure. The scheduled items and their stated values
• Type of equipment. Hand tools, portable machines, recovery gear, or installed equipment
• Where it goes. On a service truck, between shops, to job sites, or across state lines
• How it is secured. Locked storage, vehicle security, and theft risk where items are kept
• Deductible and valuation method. Replacement cost versus actual cash value
• Territory and conditions. Where the coverage applies
• Claims history and experience
• Contract requirements. What a customer or lender asks you to carry on equipment

Who typically needs inland marine insurance?

• Towing and repair: The main audience. Mobile service trucks, recovery gear, and shop tools that go out on calls are what these floaters are written for. Customers' vehicles are covered elsewhere. See garagekeepers liability and on-hook towing.
• Small fleets: A fleet with its own maintenance staff and a service truck carries tools and equipment that leave the yard.
• OTR and local haul: An owner-operator who carries valuable tools or portable equipment on the truck may ask whether a floater makes sense. Freight is a different coverage.
• Couriers: Usually not the first coverage. It may come up for scanners, lift equipment, or other items that you own and carry. Parcels in your care belong under motor truck cargo or a contract-required cargo form.
• Brokers and dispatchers: Rarely. Office equipment is usually part of commercial property or a business owner's policy.
• New authority: Mainly if you do your own repairs and carry tools for them.