What happens when your property is off the premises?
Not to be confused with Ocean Marine, Inland Marine covers your property when it is away from your business location.
While the Commercial Property policy limits coverage to the insured premises, or within 100 feet of that location, the Inland Marine policy is specifically designed for business property that is regularly away from the insured premises.
Property that is mobile may include any number of items, but the most commonly used coverage classifications for Inland Marine are shown here.
Accounts Receivable coverage provides coverage for your business records of monies owed to you, by others that are damaged or destroyed by a covered insurance claim. This coverage insures against loss sustained by you because of your inability to collect unpaid balances or accounts due to direct loss or damage to your accounts receivable records. Payment under this coverage includes the cost of reproducing lost or damaged records, collection cost in excess of normal, and interest charges on any loan to offset the reduced collections.
The Cargo form provides coverage for goods or merchandise while being transported in specific vehicles you own. The means of transportation may be expanded, using the Transportation Floater, to include coverage for your goods or merchandise while being transported by public or paid truckers, rail carrier, air express companies or unspecified vehicles owned or operated by you. Both coverage forms require a description of the property being transported to the location shown in the declarations of your policy.
As a contractor, your tools are your livelihood and loss of your tools and equipment would certainly impair your ability to work. Contractors Equipment and Portable Tools coverage provides broad insurance protection for your mobile equipment or tools. Examples of items insured on this coverage form include: Backhoes; Excavators; Skid Loaders; Bulldozers; and Cement Mixers; as well as smaller items such as hand tools. If the item is a piece of equipment or tool used by a contractor, then here is where you would most likely find coverage. Generally, equipment provided under this coverage form is specifically insured on the policy, with a maximum loss limit of coverage applying to each item. Coverage for small portable tools may generally be insured on a blanket basis.
Dealer’s property that is held for sales may be insured under the Dealers’ Physical Damage coverage form. Examples of covered property include: Automobiles; Trucks; Trailers; Campers; Mobile Agricultural Equipment; and Construction Equipment held for sale.
While the Commercial Property policy specifically excludes coverage for damage by artificially generated electrical, an Inland Marine policy covering Electronic Data Processing Equipment provides a well reasoned low cost approach to insuring this type equipment. If the electrical device receives instructions, processes those instructions and generates an intended output, then that property can be insured on the Electronic Data Processing coverage form. Examples of equipment that can be insured under this coverage include: Computers and peripherals; Fax machines; Credit card verification machines; Phone systems; and Burglar and fire alarms. Coverage is also provided under this form for data and media, extra expense, loss of business income, newly acquired equipment and equipment at newly acquired locations.
Coverage may be extended for tools owned by employees and used in connection with your business.
An Installation Floater provides coverage for machinery and equipment, including plumbing, heating, cooling, and electrical equipment. Coverage is provided at the jobsite location, while in transit to the jobsite, or while at a temporary location.
While the standard contractor’s insurance policy pays for the actual cash value of your contractor equipment, at the time of loss, there are instances where you may owe more than the standard insurance covers. A piece of equipment that is leased, or financed , will sometimes result in a contractual obligation that requires payment of more than what the units actual cash value is, thereby leaving a shortage between what the insurance pays and what the bank requires you to pay. Lease/Loan Gap coverage provides payment for this difference so that you are not obligated to pay this out of your own pocket.
The Scheduled and Miscellaneous Property Floater is a kind of “catch all” category for all manner and sorts of property that business may use away from their insured location. This type of property has a very defined description and value of the property the insurance company is intending to insure.
Valuable Records and Papers coverage provides payment for the cost of research, and other work, involved in reproducing your valuable records and papers following a covered insurance claim. Examples of insured property includes written, printed or otherwise inscribed documents including books of account, maps, films, drawings, abstracts, deeds, mortgages and manuscripts.