Inland Marine Insurance Explained:

Protecting Tools, Equipment, and Property in Transit

Inland Marine Coverage: Insurance for Movable Business Property

Inland Marine Insurance (also called floaters or equipment coverage) protects business property that moves or is used away from your primary location—contractors’ tools, mobile equipment, goods in transit, installation projects, and more. Standard property policies often limit or exclude these items.

Common coverages include:

1. Contractors’ Equipment  

Tools, machinery, and equipment used on job sites (whether owned, leased, or rented).

2. Installation Floater  

Materials and equipment while being installed at a customer’s location until the job is accepted.

3. Transportation / Motor Truck Cargo  

Goods you are hauling for others or your own property while in transit.

4. Bailee’s Coverage  

Property of others in your care, custody, or control (dry cleaners, repair shops, warehouses, etc.).

5. Miscellaneous Articles / Scheduled Property  

High-value items such as cameras, medical equipment, or specialized tools scheduled individually.

What’s NOT Covered (And Often Surprises People)

  • Buildings and permanent fixtures (Commercial Property)

  • Vehicles designed for road use (Commercial Auto)

  • Employee tools unless specifically scheduled or covered under a blanket

  • Mysterious disappearance in some forms (theft usually requires evidence of forced entry or is covered under broader wording)

  • Wear and tear, mechanical breakdown (unless endorsed)

  • Property at unattended job sites without proper security (some policies have warranties)

How Much Coverage Should You Have?

  • Blanket limit for miscellaneous tools plus scheduled coverage for high-value items

  • Adequate limits for peak equipment values and rented equipment

  • Replacement cost valuation when available

  • Coverage territory that matches where you work (including other states)

  • Deductibles that reflect the size of typical losses

  • Rental reimbursement or extra expense if a key piece of equipment is damaged

The Takeaway

Inland Marine Insurance fills the gap between your building policy and your auto policy for the property that actually moves with your business. For contractors, transporters, and service companies it is often one of the most important coverages.

  • 1. Job-Site Theft  

       Tools and copper are frequent targets. Confirm theft coverage and any security requirements.


    2. Weather Exposure  

       Equipment left outdoors faces hail, wind, and freeze risks. Review how the policy treats property in the open.


    3. Multi-State Work  

       Contractors working in both Kansas and Missouri (or beyond) need a policy territory that follows the equipment.


    4. Rented Equipment  

       Many contracts require you to insure rented items. Make sure your limit and wording cover them.


    5. Installation Projects  

       Materials at a customer’s site before acceptance are often better covered under an installation floater than under the customer’s property policy.

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Have additional Questions?

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Service@rulyins.com
(913) 229-6222