Commercial inland marine coverage is often used to provide protection for assets and property that is movable or could be in transit over land as well as property owned by others that is in the possession of the policyholder or on the policyholder’s premises.
Deceptive because of the inclusion of the term “marine,” an inland marine insurance policy typically covers property on land and is an offshoot of ocean marine insurance coverage. Originally, insurance companies offered “ocean marine” insurance to protect owners from losses of goods shipped by water in the event the ship sunk or was seized by pirates.
Over time, individuals and businesses began shipping cargo beyond major port cities and required protection from losses of goods while in transit over land. With the creation of inland marine insurance, insurance companies began offering protection for goods shipped outside of the major bodies of water and port cities. Today, inland marine insurance provides coverage for a broad range of types of property in transit and onsite.