Here’s how inland marine insurance specifically protects property during transit:
- Comprehensive Coverage:
- Transportation Risks: Goes beyond standard auto insurance to cover risks unique to cargo in transit:
- Damage during loading/unloading
- Theft from the vehicle
- Accidents and collisions
- Fire, weather-related damage, or natural disasters
- Open vs. Named Perils: Depending on the policy, you might have broad “open perils” coverage or coverage for specific named events.
- Door-to-Door Protection:
- Not Just the Truck: Inland marine insurance often extends beyond the transport vehicle itself. It can cover items:
- During temporary stops and storage while in transit
- At the loading docks before and after the main journey
- Worldwide Coverage:
- Unlike Property Insurance: Your standard business property insurance is location-specific.
- Global Protection: Inland marine policies often protect the goods anywhere in the world, making them ideal for international shipping.
- Covers the Value of the Goods:
- Replacement Cost or ACV: Policies can be structured to reimburse either the replacement cost of lost or damaged items or their actual cash value (with depreciation).
- High-Value Items: Inland marine is often used for expensive or highly specialized cargo, where standard insurance limits aren’t adequate.
Examples of How it Helps:
- Construction Company: A policy covers heavy machinery damaged when the transport truck overturns.
- Electronics Retailer: Insurance pays for a shipment of laptops stolen from a warehouse during a temporary stop in the supply chain.
- Art Gallery: A valuable painting is protected from damage during transport to a special exhibition across the country.
Important Notes:
- Choosing the Right Coverage: Policies are customizable, so work with an insurance expert to select the right types of protection and limits.
- Exclusions Still Apply: Certain risks might be excluded, like war-related damage, so it’s crucial to review the policy carefully