Why is Inland Marine insurance important?

Inland Marine insurance covers property in transit over land, as well as certain types of movable or specialized equipment that are often excluded from standard property policies. For contractors, this coverage is especially important because it protects tools, machinery, and materials while they are being transported between job sites, stored temporarily off-site, or while in the process of installation (even post installation). Without Inland Marine insurance, contractors risk losing valuable equipment due to theft, damage, or loss during the project lifecycle. Overall, this insurance provides essential protection for the mobile and high-value assets critical to contractors’ operations.

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Coverage May Include: Installation Floater

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An Installation Floater is a vital part of Inland Marine insurance for contractors because it covers materials and equipment while they are being installed at a job site. This coverage protects against loss or damage from risks like theft, vandalism, or accidents during the installation process, and post installation, depending on the terms of the project's contract, which standard property policies often exclude. Since contractors frequently transport and install expensive equipment, an Installation Floater ensures these assets are protected until the job is complete and ownership transfers. Without it, contractors could face significant financial losses if materials are damaged or lost before installation is finished.

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Coverage May Include: Tools & Equipment (incl. Rented/Leased)

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Equipment coverage under Inland Marine insurance protects tools, machinery, and equipment that contractors or businesses use on job sites, whether owned, rented, or leased. This coverage helps protect against physical loss or damage caused by events like theft, fire, or accidental breakdown while the equipment is in use, in transit, or stored temporarily off-site. Including rented or leased equipment is important because many businesses rely on these assets but may be financially responsible for their repair or replacement if damaged.

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Coverage May Include: Cargo (In Transit)

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Cargo insurance provides protection for goods and merchandise while they are being transported from one location to another, whether by land, sea, or air (first-party or third-party coverage). It covers loss or damage caused by risks such as theft, accidents, weather, or handling errors during transit by the insured or a common/contract carrier. This coverage is essential for businesses that ship products, as it helps minimize financial loss if shipments are delayed, lost, or damaged. Cargo insurance ensures that the value of the goods is protected throughout the entire transportation process.

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Claims Example:

A roofing contractor installed a $250,000 roof on a commercial building, but before the project was completed and ownership transferred, a severe storm caused significant damage to the newly installed roof. Despite not owning the property, the contractor was contractually responsible for the loss and had to cover the repair costs out of pocket. Fortunately, because the contractor had purchased an Installation Floater with adequate limits, the insurance covered the damage, preventing a major financial setback. This claim scenario highlights how crucial it is for contractors to have an Installation Floater to protect expensive materials and work-in-progress until the project is officially completed and ownership passes to the client.