Inland Marine Insurance: A 2025 Guide

By Mark Fitzpatrick

Edited by Lukas Velunta

Updated: September 5, 2025

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Key Takeaways

Inland marine insurance protects business property while being transported or temporarily away from your main location.

It covers equipment at job sites and goods in transit, but excludes data loss and vehicle damage.

Your coverage needs depend on asset value, transportation frequency and contract requirements from clients.

What Is Inland Marine Insurance?

Inland marine insurance provides financial protection for business property while being transported or temporarily located away from your main business premises. This coverage applies to two main situations:

Property in transit: Covers goods while being transported by truck, train or other land-based methods.
Property at temporary locations: Protects equipment, inventory or materials temporarily away from your main business address.

While your commercial property policy protects equipment and inventory only at your listed business location, inland marine coverage travels with your property. When a contractor takes tools to a job site, ships equipment to a customer or stores materials at a temporary location, inland marine insurance provides the same financial protection as business property coverage would at your main office.

You can buy inland marine insurance independently or add it to your current business insurance policy. Like other business insurance, inland marine policies include deductibles that you pay before insurance coverage begins.

WHY IS IT CALLED INLAND MARINE INSURANCE?

The name confuses business owners because inland marine insurance has nothing to do with water.

Originally, insurance companies only covered goods on ships. When businesses started moving cargo by train and truck in the 1800s, insurers expanded their "marine" policies to cover land transport. The old name stuck, so today you'll find "marine" insurance protecting everything from laptops to bulldozers that never see water.

Inland Marine Insurance: Coverage Types

Inland marine insurance includes different types of coverage designed for different business needs:

Equipment Coverage

Protects tools, machinery and equipment that move between locations, like contractors' power tools or a food truck's kitchen equipment.

Transportation Coverage

Covers goods while being shipped to customers, whether you're sending products across town or the country.

Installation Coverage

Your materials and equipment stay protected while being installed at job sites, such as HVAC systems in a new building.

Bailee Coverage

It protects other people's belongings when their property is in your care. Dry cleaners use this for customers' clothes and repair shops for customer equipment.

Builder's Risk

Construction projects get full coverage for both the building under construction and materials stored on-site.

Fine Art and Valuables

High-value items like artwork, antiques or collectibles receive specialized protection whether stored, displayed or being transported.

Electronic Data Processing

Computer equipment, servers and digital data get coverage that standard business policies often exclude.

What Does Inland Marine Insurance Cover?

Inland marine insurance covers business property when it leaves your main location, but coverage depends on specific circumstances. Let's look at different scenarios:


Equipment transported to job sites	✅	A plumbing contractor's tools are covered while traveling to customer locations because they're used for business operations away from the main office.
Equipment damaged at your main business location	❌	Machinery that breaks down at your primary address falls under commercial property insurance instead of inland marine coverage.
Inventory damaged while shipping to customers	✅	An online retailer's products stay protected during delivery to buyers since they're in transit for commercial purposes.
Data lost from a company laptop	❌	Inland marine covers a consultant's work laptop if it's stolen during travel. While the physical laptop is protected against theft or damage during transport, digital data isn't. That'll require cyber liability insurance.
Materials stolen from a construction site	✅	Inland marine insurance protects lumber and building supplies at an active construction project because the materials sit temporarily at the job site.
Goods stored permanently at a warehouse you don't own	❌	Long-term storage at third-party facilities typically needs warehouse legal liability coverage rather than inland marine protection.
Fine art transported to galleries or shows	✅	A gallery's paintings receive specialized coverage while being moved to exhibitions because fine arts inland marine protects valuable items during transport.
Vehicle damage during equipment transport	❌	The truck itself isn't covered by inland marine insurance since commercial auto coverage handles vehicle damage. However, inland marine coverage applies to the equipment inside.

How Much Inland Marine Insurance Do I Need?

Inland marine insurance isn't a legal requirement, but specific situations make it mandatory. Motor carriers transporting goods across state lines need federal DOT-compliant cargo coverage, though requirements vary by state and cargo type. Check with your state's transportation department for specific mandates.

Construction contracts often specify minimum coverage amounts for materials and equipment before work begins. The right amount of coverage depends on:

1
Value of mobile assets
Match coverage to replacement costs. A contractor with $50,000 in tools needs more protection than a consultant with a $2,000 laptop.
2
Contract requirements
Many clients specify minimum coverage before work begins. Review your typical contracts to meet these requirements.
3
Transportation frequency
Daily equipment transport creates a higher risk than occasional shipping. Food trucks face constant exposure, while office-based businesses might need minimal coverage.
4
Financial impact
Consider whether you could replace assets out-of-pocket. If losing $10,000 in equipment would hurt your cash flow, buy enough coverage to protect against that loss.
5
Travel distance and locations
Shipping across the country or working in high-crime areas creates more risk than local jobs. You'll want higher coverage limits for these situations.

Commercial Inland Marine Insurance: Bottom Line

Standard business insurance stops protecting your property when it leaves its home base. Inland marine coverage bridges this gap by following your assets wherever work takes them. The right inland marine coverage amount depends on what you transport, how often you move it and what your clients require for their projects.

Inland Marine Insurance Coverage : FAQ

MoneyGeek's experts answered common questions about inland marine insurance to help you understand this specialized coverage:

What is an inland marine policy?

An inland marine policy is a specialized business insurance contract that protects property away from your main location. You can buy inland marine insurance as a standalone policy or add this coverage to your current business insurance package. The policy follows your property wherever business takes it.

What is cargo insurance and how does it relate to inland marine?

Cargo insurance protects goods during transport by any method, whether by truck, ship, plane or train. When cargo travels by land (truck or train), inland marine insurance covers it. So cargo insurance for truckers and land transport is inland marine coverage with specialized terms.

What's the difference between inland marine and commercial property insurance?

Commercial property insurance protects equipment and inventory only at your listed business location, while inland marine coverage travels with your property. When contractors take tools to job sites or businesses ship products, commercial property insurance stops covering them, but inland marine insurance continues protection.

What does inland marine insurance cover?

Inland marine insurance covers business equipment, tools, materials and inventory while being transported or temporarily located away from your main business address. This coverage protects goods during shipping, equipment at job sites and materials during installation. But inland marine insurance excludes data, vehicles and property at your primary location.

Is inland marine insurance required by law?

No states mandate inland marine insurance for general business operations, but specific situations make this coverage mandatory. Motor carriers transporting goods across state lines need federal DOT-compliant cargo coverage. Many construction contracts also require inland marine coverage for materials and equipment as project conditions.

How much does inland marine insurance cost?

Inland marine insurance costs depend on your asset value, transportation frequency and risk level. For example, a business with $50,000 worth of equipment needs higher coverage limits than one with $2,000 worth of assets. Daily transport, long distances and high-crime destinations increase inland marine premiums, while occasional local jobs cost less.

When does inland marine coverage start and end?

Inland marine coverage starts when your property leaves your main business location and ends when it returns. For ongoing projects, inland marine coverage continues while materials sit temporarily at job sites. For shipping, inland marine protection lasts from pickup through delivery to the final destination.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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sources

Federal Motor Carrier Safety Administration. "Insurance Filing Requirements." Accessed August 22, 2025.

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