Inland Marine Insurance

Example

“The construction company purchased inland marine insurance to protect their $2 million crane while it was being transported between job sites.”

Memory Tip

Remember 'Inland Marine = Mobile on Land' - it covers things that move around on land, even though the name sounds like water insurance.

Why It Matters

Standard property insurance only covers items at fixed locations, leaving valuable mobile property unprotected during transport or temporary storage. Inland marine insurance fills this crucial gap, protecting businesses and individuals from significant financial losses when items are moved.

Common Misconception

The name confuses many people who think it only covers boats or water-related activities, when it actually has nothing to do with marine vessels. Others assume their regular property insurance covers items during transport, not realizing they need separate inland marine coverage.

In Practice

A wedding photographer owns $25,000 in camera equipment covered by inland marine insurance with a $500 deductible. While traveling to a destination wedding, their equipment bag is stolen from their hotel room. The inland marine policy would pay $24,500 ($25,000 minus the $500 deductible) to replace the stolen equipment, whereas their homeowner's policy would not cover items used for business or stolen while traveling.

Etymology

Originated from marine insurance practices in the 1800s when goods moved from ships to inland transportation like trains and wagons. The 'marine' name stuck even as coverage expanded to all land-based transport and mobile property.

Common Misspellings

Related Terms

More in insurance

Other insurance terms you should know

See Also