There are many different types of insurance that manufacturers need to have in place to protect the items that they make, ship, and store. These include equipment insurance, warehouse insurance, workers’ compensation, and more. However, none of those policies have the power that inland marine insurance has. These policies cover quite a few things that could happen to your goods from the minute they leave the warehouse until they arrive at their destination.
How does inland marine insurance work? Let’s explore to learn more.
What Exactly is Inland Marine Insurance?
The name alone makes it sound as though these insurance policies are designed to cover boats that aren’t in the water. However, this type of insurance doesn’t work that way at all. Instead, it covers manufactured goods that are in transit, hence the “inland” part of the name. The “marine” part is a bit of a misnomer, as the trucks and other vehicles that transport the items aren’t on the water at all. Instead, they’re on the roads and highways, moving your company’s manufactured goods from one place to another.
What Does Inland Marine Insurance Do?
On top of providing protection for your company’s products while they’re in transit, these insurance policies cover a number of situations. For example:
Specialty Equipment – If your manufacturing company has specialty equipment that is uses but also loans out to other companies on a regular basis, you can’t rely on that company to have enough insurance coverage in place should something go wrong with their operations. Your inland marine policy will cover that specialty equipment, even if it isn’t in your warehouse or manufacturing center.
Stored Property and Parts – Sometimes you don’t use all of your raw materials at once and have some stored in a building on your company’s property. In this case, your business insurance policy can only do so much. Thankfully, your inland marine insurance can cover those materials, as well as any goods that have been loaded on a truck that’s waiting for a destination.
Equipment and Materials En Route to Your Company – Although the companies that produce the raw materials and make your company’s equipment will have their own policies, it doesn’t hurt to have your inland marine insurance protect them as well.
What Doesn’t It Cover?
While inland marine insurance can cover a number of different things, it does have some limitations. For example, it only covers your specialty equipment when it’s out on loan or in a truck waiting to go to the lendee. The policy won’t pay for any equipment that’s stationary and is not able to be moved in your building. That requires a different type of policy. It also won’t cover the trucks that your business uses to move your goods from place to place. You’ll need a commercial truck insurance policy for that.
Have Questions? Contact Charlotte Insurance
Want to learn more about inland marine insurance for manufacturers? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.