Can I tailor inland marine insurance to my business needs?

Complete Guide to Tailoring Inland Marine Insurance

Why This Question Matters for Colorado and Utah Residents

Colorado and Utah face unique weather and operational risks that put business equipment and property on the move at higher risk. Customizing your inland marine policy helps ensure you’re protected against the losses that matter most—especially as 68% of claims in our region stem from weather events like hail, flooding, and high winds.

• Hail and Flooding Realities: Northern Colorado and Utah see frequent hailstorms and unpredictable flooding, causing average inland marine claims of $28,000—and over $3.4 million in local losses in a single 2024 storm.
• Industry-Specific Vulnerabilities: Construction, agriculture, and tech businesses have vastly different exposures. A “one-size-fits-all” policy often leaves critical gaps.
• Business Interruption Risk: When equipment is down, average business income loss for local firms can exceed $18,000 per day.

What Most People Get Wrong

A common misconception is that inland marine insurance is a standardized policy that covers any portable property automatically. In reality, policy forms, endorsements, and exclusions vary widely between carriers. Many Colorado and Utah businesses overlook specialized weather endorsements (for hail or flood), or assume wear-and-tear will be covered, only to find out the hard way that it’s not.

Another point of confusion: many policies exclude equipment in transit or exclude “inherent vice” (deterioration of art/electronics), leaving key assets exposed if not specifically listed and valued.

The Complete Picture

Inland marine insurance can and should be tailored to fit your business operations, assets, and regional risks. With help from a local, independent broker like FoCoIns, you can:

• Specify covered items—from construction equipment to electronics, inventory, or fine art
• Add weather and environmental endorsements that cover hail, flood, or snowmelt-related events, which affect more than two-thirds of local claims
• Choose valuation methods—like replacement cost for specialized equipment, or agreed value for unique items
• Include business interruption and rental reimbursement to minimize downtime when equipment is damaged

Remember: policy pricing in Colorado and Utah typically ranges from 0.1%–3% of equipment value ($800–$5,000/year), and bundling with other commercial policies can save 15–22%. Customization isn’t just possible—it’s essential. FoCoIns guides you through every step, ensuring your policy supports your business and your bottom line.

Making the Right Decision for Colorado and Utah Residents

Question 1: What are the specific risks my property faces in our region?

Inventory the types of movable property your business relies on, and consider:

• Exposure to hail, flood, or wildfire—do you store equipment outdoors or move it between sites?
• Theft or accident risk—are valuable items transported on public highways or in urban areas?

Question 2: How much downtime could my business afford if equipment is damaged?

Calculate your true exposure—not just replacement cost, but lost revenue. Examples:

• If a $50,000 excavator is out for two weeks after a hailstorm, repair costs plus $35,000 in lost income may far exceed the annual premium for full coverage and rental reimbursement.
• Would business interruption coverage help you recover more quickly?

Question 3: Am I working with an advisor who understands Colorado and Utah’s unique risks?

Not all inland marine carriers are alike. Choose a broker who can:

• Source policies from multiple AM Best A-rated carriers
• Recommend endorsements based on recent regional storm losses, and ensure policy language fits local legal/regulatory requirements