Inland Marine Insurance

Inland marine insurance compensates companies for the loss of movable or specialized property. While traditional property insurance covers losses to stationery assets, such as buildings and equipment, inland marine insurance covers the loss of goods in transit by automobile, airplane or rail car. These policies were formed as an extension of ocean marine insurance, in which assets were transported by ocean-going vessels. Since the property under coverage is not attributable to a single location during transit, inland marine insurance policies are often known as “floaters”.In 1933, the National Association of Insurance Commissioners adopted the Nationwide Marine Definition to differentiate between inland marine and ocean marine insurers and to determine which types of assets would be covered under inland marine policies. In the U.S.A., inland marine insurance makes up about 2 percent of total insurance premiums paid by companies. However, inland marine polices account for a much higher percentage of the profits for insurers.

Companies of all sizes purchase inland marine insurance policies to cover assets that are in transit or have a movable component. These policies fill in the gaps in coverage often left by conventional property insurance. Small businesses use inland marine coverage to protect themselves against losses of vital equipment, such as a contractor insuring the tools he carries in his work truck. Major corporations also employ inland marine insurance to compensate for the potential loss of goods in transit from their manufacturing plants to retail outlets.

The two primary types of inland marine insurance coverage are labeled as “filed” and “non-filed”. Filed inland marine insurance forms include coverage as described under the conditions outlined in the ISO Commercial Inland Marine Insurance Program. Non-filed marine insurance forms include coverage for such events as exposure during transit over open bridges through tunnels. Non-filed forms also include bailee policies, which cover individuals who hold and care for items owned by a third party.