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What You Should Know About Equipment Coverage

What You Should Know About Equipment Coverage

If you’re like most business owners, you have a lot of valuable equipment including tools that are vital to your success. Lawn care companies need mowers. Craft beer brewers need kegs. As you are shopping for basic insurance like general liability and workers comp, you should strongly consider covering your important equipment and learning about coverage.

How Do I Determine What Insurance Should Cover My Equipment?

Some equipment can be covered under Property Coverage. But if your equipment and tools are typically in transit to and from a work site, you should get coverage under an inland marine policy.

Why is it called “inland marine insurance” if it covers equipment transported on the land?

Inland marine insurance is a term that developed in the 19th century with the advent of railroads. Most companies at the time who purchased insurance were insuring their equipment and goods for transportation across the oceans. Insurance companies who provided this type of coverage specialized in “ocean marine insurance.”

As more equipment was transported over land by railroads, the first insurance companies to insure this liability were the ocean marine insurers. These insurers had experience covering equipment and forayed into the new market. The “marine” term stuck, and they simply changed the name from “ocean marine insurance” to “inland marine insurance.”

What Can Inland Marine Insurance Cover?

Inland marine coverage is insurance for tools and equipment that may be moving from location to location, whether that location is in storage, at a temporary location or on a long term work site.  Tools and equipment are often subject to unique causes of loss that traditional property policies do not cover.

What Can Be Covered Under An Inland Marine Policy?

Inland marine policies cover equipment that cannot be reasonably confined to a single location (such as an office).  The following are just a few examples of what inland marine insurance can cover:

  • Backhoes, forklifts, road-graders, bulldozers
  • Generators and compressors
  • Cranes and earth movers
  • Concrete Mixers
  • Hammers, shovels and other hand tools
  • Computers (such as laptops or tablets)
  • Building supplies

What Else Can Be Covered by Inland Marine Insurance?

Inland marine insurance isn’t just for contractor’s equipment.  There are many different types of inland marine policies that can cover installation floaters, building under construction (builders risk), bailees customer goods and more.

Inland marine coverage is broad-ranging and flexible.  It can be written as blanket coverage (one single limit for rotating equipment) or on a scheduled basis (or owned equipment).  To determine the coverages and limits that are right for you, call or email your Hayes Insurance agent today.

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