Why Is It Called Inland Marine Coverage?
Explore why "Inland Marine Coverage" is named as it is, linking its maritime past to modern property protection.
Inland marine coverage is a type of property insurance designed to protect movable property, specialized equipment, and goods in transit. Despite its name, this coverage primarily applies to property on land, not on water. This insurance addresses specific risks that traditional property policies typically do not cover, particularly for assets that are mobile or frequently relocated.
The Origins of Marine Insurance
Marine insurance emerged from the ancient practice of maritime trade. Early forms can be traced back to the 14th century. Its primary purpose was to protect merchants and ship owners from financial losses due to perils of the sea, such as shipwrecks, piracy, and severe weather.
This early insurance covered both vessels and their cargo carried across oceans. These principles of risk transfer and indemnification laid the groundwork for modern insurance concepts, establishing marine insurance as an early form of commercial insurance.
Evolution to Inland Coverage
As commerce expanded beyond sea routes, new modes of transportation emerged, including canals, railroads, and eventually motor vehicles. This created a need to protect goods and property while in transit over land. Instead of creating an entirely new insurance framework, providers adapted the existing marine insurance model. The established principles of covering movable property against specialized transit risks were extended to these new inland conveyances.
The term “inland” was added to distinguish this new form of coverage from traditional “ocean marine” policies. The “marine” portion of the name persisted because the underlying concept remained consistent: insuring property that was not fixed at a single location and was subject to unique risks associated with movement and transport. This adaptation allowed for flexible coverage that “floated” with the property, regardless of its specific location on land.
What Inland Marine Covers Today
Modern inland marine insurance covers a broad array of property that is movable, in transit, or not typically covered by standard commercial property policies. Examples include contractors’ equipment, which is frequently moved between job sites, and valuable fine art and collectibles that require protection during transport or exhibition.
The coverage extends to goods shipped by truck or rail, computer and communication equipment, and specialized items like medical diagnostic tools. Inland marine policies also encompass builder’s risk, which protects structures and materials during construction, and bailee’s customer coverage, designed for businesses holding clients’ property. This specialized insurance fills gaps in coverage, addressing risks such as theft, fire, and accidental damage that can occur when property is mobile or temporarily off-premises.