Inland Marine
Why "Marine" Insurance for Land-Based Contractors?
The name sounds strange, but the coverage makes perfect sense. Inland marine insurance evolved from ocean cargo policies to protect property that moves from place to place. For contractors, this means coverage for your tools, equipment, and materials while they travel between job sites or sit at temporary locations.
Your standard property insurance covers items at your fixed business location. But construction does not happen in one place. Your tools ride in work trucks, your equipment moves from site to site, and your materials get stored wherever the project demands. Inland marine fills that gap.
What Equipment and Tools Are Protected?
Think about everything your crews need to do their jobs:
- Hand tools and power tools: From basic hammers to specialized saws, the gear your tradespeople carry every day
- Heavy equipment: Excavators, skid steers, forklifts, and other machinery that travels between projects
- Specialty instruments: Laser levels, diagnostic equipment, testing devices, and other precision tools
- Building materials: Lumber, fixtures, and supplies stored at job sites before installation
- Leased or rented equipment: Coverage can extend to machinery you borrow for specific jobs
Inland marine policies protect these assets against theft, damage, collision, fire, and other covered perils whether the property is on your truck, at a job site, or stored at a temporary yard.
Isn't This Covered by My General Liability?
This is one of the most common misconceptions. General liability insurance protects you when someone gets hurt or when you damage someone else's property. It does not cover damage to your own equipment and tools.
Picture this scenario: Your electrician parks the work van overnight at a commercial site. Thieves break in and steal thousands of dollars worth of specialized testing equipment. General liability will not pay for that loss. Inland marine coverage will.
Without this protection, replacing stolen or damaged equipment comes straight out of your pocket. For contractors who rely on expensive tools and machinery to earn their living, that exposure adds up quickly.
How Do Contractors Typically Structure This Coverage?
Most contractors can choose between two main approaches:
- Scheduled coverage: You list specific high-value items with their individual values. This works well for expensive equipment you want to ensure is fully covered.
- Blanket coverage: A single limit covers all your equipment without listing each item individually. This provides flexibility when your inventory changes frequently.
Many policies also offer options for equipment you rent or lease, materials awaiting installation, and items temporarily stored off-site. The right structure depends on your business operations, the types of tools you use, and how frequently your equipment inventory changes.