Key Takeaways
- Inland marine covers property in TRANSIT and mobile equipment—it's called 'marine' for historical reasons (evolved from ocean cargo insurance)
- Key characteristics: BROAD coverage (often all-risk), VALUED policies (agreed amount), typically NO coinsurance requirement
- Common forms include contractors equipment floaters, builders risk, electronic data processing (EDP), and transit/transportation policies
- The Nationwide Marine Definition establishes what qualifies as inland marine—property must be mobile, in transit, or have a connection to transportation
- Inland marine premiums exceeded $30 billion in 2024, making it one of the fastest-growing commercial lines
Inland Marine Insurance
What is Inland Marine Insurance?
Inland marine insurance covers property in transit and mobile equipment. Despite its name, it has nothing to do with water—the term comes from its historical origins in ocean cargo insurance.
Quick Answer: Inland marine covers movable property, property in transit, and equipment that moves from location to location. It's called "marine" because it evolved from ocean cargo policies to cover goods after they left the ship.
History and the Nationwide Marine Definition
In 1933, the insurance industry created the Nationwide Marine Definition to clarify what qualifies as inland marine insurance:
Qualifies as Inland Marine:
- Property in transit (goods being shipped)
- Mobile equipment and property
- Property with a transportation connection
- Floater policies for scheduled property
- Bailee liability (property in your care)
Does NOT Qualify:
- Fixed location property (covered by commercial property)
- Automobiles (covered by auto policies)
- Aircraft and watercraft (separate policies)
Key Characteristics of Inland Marine
| Feature | Inland Marine | Standard Property |
|---|---|---|
| Coverage Basis | Typically ALL-RISK (open peril) | Often named perils |
| Valuation | VALUED policy (agreed amount) | ACV or replacement cost |
| Coinsurance | Typically NONE | Usually 80% or 90% |
| Territory | Broad (often worldwide) | Described premises |
| Property Type | Mobile/transit | Fixed location |
Common Inland Marine Forms
1. Contractors Equipment Floater
- Covers mobile equipment (bulldozers, cranes, tools)
- All-risk coverage typical
- Covers equipment at job sites and in transit
- Excludes normal wear and tear
2. Builders Risk
- Covers buildings under construction
- Coverage increases as construction progresses
- Typically ends when building is occupied or completed
- May include materials in transit and at temporary storage
3. Electronic Data Processing (EDP)
- Covers computer equipment and data
- Broader than standard property forms
- May cover extra expense to restore operations
- Includes media and software costs
4. Transit/Transportation Policies
- Covers goods while being shipped
- May be written on shipper or carrier
- Covers all causes of loss during transit
- Important for manufacturers and distributors
5. Equipment Floaters
- Scheduled property coverage
- Agreed value with no coinsurance
- Examples: camera floaters, musical instruments, fine arts
Why is "inland marine" insurance called "marine" when it has nothing to do with water?
Which of the following is a key characteristic that distinguishes inland marine from standard commercial property insurance?
11.2 Ocean Marine Insurance
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