What’s inland marine insurance?

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Inland marine insurance is an insurance instrument designed to protect property while it is in transit, along with high-value moving items such as cutlery and tools. Despite the rather peculiar name, this is actually a very useful type of insurance, and is commonly recommended for business owners, especially people who need to travel for work or people who work with high-value items. Many insurance companies offer this type of policy and can discuss options with their clients. It is usually purchased as a supplement to an existing insurance policy.

The origins of this type of insurance supposedly began with Lloyd’s of London, a venerable insurance provider that dates back to the 17th century. Initially, Lloyd’s insured the ships’ cargo, holding the insured responsible for what happened to their products on land. Eventually, coverage was extended to include cargo after it had been unloaded, with inland marine insurance covering cargo in transit, storage, or holding, providing more comprehensive coverage to policyholders. Today this insurance is often used by people who are not near the ocean and have no intention of transporting anything by boat.

Commercial insurance generally covers a specific location. This type applies to goods and property associated with someone’s job, wherever that person is. When a contractor’s tools are stolen from a truck or job site, they would be covered. Similarly, goods damaged in transit over land may be covered by this type of insurance. Individuals can also cover individual buildings and other types of property.

Insurance agents may recommend inland marine insurance to fill gaps in coverage, ensuring that a customer is fully covered in the event of a problem. For example, many things covered by this type of insurance are specifically excluded in conventional insurance policies, like jewelry, for example. Having this additional insurance as a “floater” policy can protect people from such losses. It is also not restricted to commercial customers.

When purchasing any type of insurance policy, individuals should take note of the deductible and any restrictions in the policy. They can choose between named peril policies, where everything covered by the policy is specifically named by name, or comprehensive insurance, where anything excluded from the policy is specifically stated. For example, an all-risks policy might state that it won’t cover losses caused by negligence, suggesting that it will cover everything from hurricanes to fire.

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