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Equipment / Inland Marine Insurance

Coverage for Business Property That Doesn’t Always Stay Put

Many businesses depend on tools and equipment that travel wherever the work takes them. John Scott Insurance helps you protect mobile property, equipment and materials with Inland Marine Insurance.

What Is Inland Marine Insurance?

Inland Marine Insurance is a category of insurance designed to cover certain types of property that:

  • Move from one location to another
  • Are transported in vehicles or trailers
  • Are used at job sites
  • Are temporarily stored away from the primary business location
  • Require specialized property coverage
  • May not fit neatly within a standard Commercial Property policy

The exact coverage depends on the policy, property and business operation.

The name Inland Marine Insurance remained.

Today, businesses commonly use Inland Marine coverage for tools, equipment and other eligible property that moves away from a fixed business location.

Why is it called “Inland Marine”?

This is one of the most common questions about this coverage.

Historically, marine insurance developed to protect goods being transported over water.

As commerce expanded inland, insurance coverage evolved to protect certain property while it was being transported over land or moved between locations.

What Can Inland Marine Insurance Cover?

Coverage varies significantly depending on the type of property and insurance policy. Depending on the business and policy, coverage may be available for certain property such as:

Contractor tools

Construction equipment

Portable Equipment

Machinery

Property transported between locations

Specialized equipment

Property temporarily located at job sites

Certain materials awaiting installation

Other eligible mobile business property

Tools and Equipment in Work Trucks

Are the tools in my work truck covered by Commercial Auto Insurance?

Not necessarily. Commercial Auto Insurance is primarily designed to address the vehicle and auto-related exposures.

The tools, equipment and machinery being transported in or on the vehicle may require separate property coverage. Depending on the business and equipment, Inland Marine Insurance may be used to help protect those items

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Commercial Auto Insurance

Does Inland Marine Cover Theft?

Depending on the policy and circumstances, it may provide coverage for certain theft losses involving insured tools or equipment. Coverage can depend on:

Where the property was located

How it was stored

Whether there was evidence of theft

Policy exclusions, limits and deductibles

Other policy requirements

Understand how your policy treats tools left overnight in vehicles, trailers or job sites.

How Much Equipment Coverage Do I Need?

Consider the current value of everything your business depends on:

Large machinery & specialized equipment

Hand tools and power tools

Computers or electronics used in the field

Equipment stored in vehicles and trailers

Newly purchased equipment

Rented or borrowed equipment, where applicable

It’s easy to underestimate how much you have invested in tools. A truck or trailer filled with equipment can represent a significant amount of money. Regular inventories help keep limits current.

Scheduled Equipment

Higher-value equipment may be specifically listed on the policy with:

  • Description, make & model
  • Serial number
  • Value

Keep These Equipment Records

  • Description, make and model

  • Serial number

  • Purchase date & price

  • Current value

  • Photos & receipts

  • Location

  • Owned, leased or rented

Accurate records help with insurance reviews and following a loss.

Unscheduled Equipment

Certain lower-value tools and equipment may be covered under a blanket or unscheduled limit, depending on the policy. Keep accurate records so insurance reflects what you actually own.

Rented or Borrowed Equipment

Contractors and other businesses may occasionally rent, lease or borrow equipment. Coverage depends on the policy and rental agreement. Discuss these arrangements with your insurance professional before assuming rented equipment is automatically covered — rental companies may also have specific insurance requirements.

Equipment stored securely at one location is a very different exposure than equipment traveling to multiple job sites every day.

What Affects the Cost?

We’ll help you understand your property exposures, review your current coverage and make sure your business is protected from the unexpected.

✓ Type of equipment
✓ Equipment value
✓ Number of items
✓ Business operations
✓ Where used & stored
✓ How transported
✓ Theft exposure
✓ Claims history
✓ Limits & deductibles
✓ Operating area
✓ Security practices

Exactly what’s covered depends on the policy, limits, valuation method, exclusions and circumstances of the loss.

Equipment Insurance for Contractors

Thousands of dollars — or significantly more — in tools and equipment. Exposures include equipment theft, job-site losses, tools in vehicles and trailers, equipment moved between jobs, rented and borrowed equipment, newly purchased items and specialized machinery.

Explore Contractor Insurance

Equipment Insurance for Tree Service

Chippers, stump grinders, chainsaws, climbing and rigging equipment, portable tools and specialized machinery — often at multiple job sites every day. Understand how equipment is insured in transit, at job sites and overnight.

Frequently Asked Questions About Inland Marine Insurance

The term developed historically from marine insurance used for goods in transit. Today it commonly protects certain property that moves over land or away from a fixed business location.

Depending on the policy, certain tools, equipment, machinery, materials and other eligible property that travels or is used away from the primary location.

Not necessarily. Commercial Auto primarily addresses the vehicle and auto-related exposures. Tools and equipment may require separate Equipment or Inland Marine coverage.

Certain theft losses may be covered depending on the policy and circumstances. Review theft limitations, exclusions, deductibles and storage requirements.

Certain equipment used or temporarily stored at job sites may be eligible, depending on the policy.

Coverage may be available for certain rented or leased equipment, but review your policy and rental agreements.

Some higher-value equipment may need to be individually scheduled, while lower-value items may qualify for blanket or unscheduled coverage. This varies by policy.

Maintain a current inventory of tools and equipment and consider what it would cost to replace those items following a covered loss.

Coverage territory depends on the policy. Businesses that transport equipment across state lines should discuss their full operating area with their insurance professional.

 

Part of Your Business Insurance Program

Protecting the equipment itself is only one part of the picture. Depending on the business, additional coverage may include:

General Liability Commercial Property Workers’ Compensation Commercial Auto Business Owners Policy Commercial Umbrella / Excess Other specialized coverage
Explore Business Insurance

Equipment Insurance Across the Midwest

John Scott Insurance works with commercial clients throughout:

Michigan | Indiana | Illinois | Wisconsin | Iowa | Minnesota

Businesses operating in multiple states should discuss their full operations and contractual requirements with their insurance professional.

Protect the Equipment That Keeps Your Business Working

For many businesses, losing a truckload of tools or an essential piece of equipment doesn’t just create a property loss. It can bring work to a stop.

We can help you identify the tools and equipment your business depends on, review how they’re currently insured and determine whether Equipment / Inland Marine coverage belongs in your overall program.

Request an Enquipment Insurance Review