The term Inland Marine Insurance may be a quirky way to describe something that doesn’t really have anything to do with water or “marine”. It’s an offshoot of the insurance coverage called ocean marine which used to cover protection for any cargo that’s being transported across the ocean. It grew from the necessity of covering cargo and other valuable items that are being transported first on land and then being transported by water on ocean-faring vessels.
Over the years, the insurance coverage has evolved to include all property that are in transit, never mind that it’s never going on water or being transported on the ocean. The “Inland Marine” just kind of stuck and has since, been used to cover almost all property that are being transported whether on a one-time deal or on a regular basis. Here are some examples of movable items:
Inland marine insurance can also be used to cover buildings under construction. If you think about it, materials and tools are often transported to the project site from a construction or hardware store and may involve getting into accidents en route to the destination. It is for this reason that contractors often purchase inland marine insurance to protect them from incidents like this. Also, any materials that are in storage can also be covered from theft, vandalism and neglect which is a good investment for your operations.