What is Inland Marine Insurance?
Inland Marine Insurance is known as a “floater” policy, which is a fancy way of saying the insurance coverage is attached to the insured property.
A traditional Commercial Property Insurance policy is only designed to cover property at the address listed on the plan. That is why Inland Marine Insurance is acquired, so it can bridge the gaps created by a traditional policy.
These policies cover:
- Tools and equipment when they are in transit or in possession of another person or company.
- A moveable good (like blueprints) or instrument of transit (like a trailer) that is used in various locations.
For most marine construction professionals, Inland Marine Insurance is essential to business operations, providing necessary coverage for mobile job sites.
What Is Builder’s Risk Insurance?
Builder’s Risk Insurance is a type of Inland Marine coverage, often calling their product “Inland Marine – Builder’s Risk.”
The main difference between the two is that Builder’s Risk cover materials and fixtures of a structure while it is being built or remodeled. These are usually short term policies, generally lasting no more than 12 months. These policies can be extended.
Now, this may seem straightforward. However, a Builder’s Risk policy can be extended to cover:
- Property in transit.
- Property in temporary storage – particularly if that storage is a portable container.
- Valuable papers.
Now, do you see how this could be confusing? So which policy should you consider?
Usually, you’ll only want to investigate a Builder’s Risk policy if you’re building a structure. In most other cases, Inland Marine is enough.