What type of businesses can benefit from this coverage?
In order to determine if a company has need for inland marine coverage, certain questions need to be answered: Do you use delivery trucks to transport goods? Do you rent equipment for construction job sites? Do you contract with third-party cargo carriers to transport goods of any kind? Does your company transport goods? Do you transfer materials or supplies in any way?
Why will businesses that do not ship or transport their own goods appreciate the coverage?
It’s important to understand what type of coverage a third-party cargo carrier has and whether it is enough to cover your goods they are transporting. Even if you ship via UPS or Federal Express, you might find that their coverage is limited if your goods are damaged or stolen during transit. You may even need to carry some of your own inland marine coverage to properly protect your assets. Discuss this with your risk manager or broker, and always ask a third-party carrier for copies of its policy.
Will a commercial automobile policy cover transit claims?
No, though some business owners assume that the goods they transport are covered because they secure commercial auto insurance. It’s not like a homeowner’s policy that will generally cover property that is stolen from an owner’s automobile. Even goods transported in a company’s vehicles are not covered under commercial auto insurance. However, inland marine insurance does extend coverage to protect those goods during transit. Remember, as soon as goods leave your premises — the second you pull out of your driveway — those goods may not be protected without proper inland marine insurance.
What steps should a business take to obtain inland marine insurance?
You need to discuss with your risk manager the various transport activities your business engages in to protect your goods in transit. Inland marine insurance is a specialty area, so be sure your broker has experience with this coverage. Finally, it’s a good idea to ask your broker to explain all areas of inland marine coverage — the exposures and coverages are vast and, as you can see, extend to areas that surprise many business owners.
Calvin Sistrunk, CIC, is a principal with Garrett/Mosier/Griffith/Sistrunk Insurance Services. Contact him at (949) 559-3373 or [email protected].