The name might be confusing but the inland marine refers only to the equipment transported over inland and that include contractors’ tools, equipment, and heavy machinery like a big excavator. This coverage is important to contractors as insurance company will pay to replace all your tools and equipment if they get stolen or damaged. Some contractors might think that the auto insurance will pay for tools replacement if the tool box is permanently attached to the stolen truck but that’s wrong. The auto insurance will pay for the vehicle only and all the items inside should be covered either by the home insurance (personal effects) or inland marine policy for the contractor’s tool.
It is important to note that the inland marine policy is different from the business personal property. BPP insurance are the ones that are in the specific business location like the office furniture, computers, and other tangible business assets. Inland marine mainly protects business equipment that are in transit.
Below we list what are commonly covered under the contractors inland marine policy:
1) Property that is moving over land between locations like the construction equipment.
2) Property that is kept at an off-site warehouse or facility like the excavator securely stored at a jobsite.
3) Property that is stored in a moving vehicle like the tools inside the plumber’s van.