Navigating inland marine coverage can be difficult. That’s why understanding commonly used terms is crucial when evaluating or purchasing coverage. To help make the process more seamless, we’ve put together a list of key inland marine insurance terms worth knowing. Keep this guide handy the next time you’re reviewing a policy or exploring your coverage options. Here are the top inland marine terms you should know:
1. Inland Marine Insurance
Starting with the basics, inland marine insurance protects property in transit over land, as well as certain types of movable or specialized property. It fills in the gaps left by standard commercial property insurance.
2. Floaters
A floater is a type of inland marine coverage designed for items that move from place to place. Common examples include a contractors’ equipment floater or a fine arts floater. These policies “follow” the item wherever it goes.
Common Types:
· Contractor’s Equipment Floater
· Installation Floater
· Commercial Articles Floater
· Accounts Receivable Floater
3. Bailee Coverage
A “bailee” is someone who temporarily holds property for someone else—for instance a dry cleaner, repair shop or storage facility. Bailee coverage protects the business if the customer’s property is lost, stolen, or damaged while in their care.
4. Contractors’ Equipment
This refers to tools, machinery, and equipment used by contractors on job sites. Inland marine insurance often covers these items since they frequently move between locations and aren’t always covered by standard property policies.
5. Installation Floater
This protects materials from the moment they leave the warehouse until they’re installed at the job site. This coverage is ideal for contractors or installers who move materials around frequently.
6. Builders’ Risk Insurance
Technically a form of inland marine insurance, builders’ risk covers buildings under construction and the materials, fixtures, and equipment involved. It protects against theft, vandalism, and weather-related damage during the building.
7. Transit Coverage
Transit coverage protects goods while they’re being transported from one place to another, whether by truck, train or courier. It’s vital for businesses to regularly ship products or equipment.
8. Electronic Data Processing (EDP) Coverage
This protects computer systems, hardware, and digital data. Many standard property policies exclude these assets, so EDP coverage is often added through inland marine insurance.
9. Rigger’s Liability (often an inland marine endorsement)
Applies when a contractor is lifting or moving heavy property. It covers damage to the property being moved, which isn’t covered by standard liability.
10. Equipment Dealers Coverage
It is tailored for businesses that sell, service, or rent equipment, such as construction or farm machinery.
Understanding inland marine insurance terminology can give you a great advantage when protecting your business’s valuable assets. These terms are more than just jargon—they’re the foundation for making informed decisions about your insurance needs. To learn more about Falvey’s inland marine coverage, contact us today.
