Does inland marine insurance cover international shipments?

Complete Guide to Inland Marine Insurance & International Shipments

Why This Question Matters for Colorado and Utah Residents

If your business transports valuable equipment or goods—whether across state lines or beyond the U.S.—clarifying your coverage could mean the difference between a manageable repair bill and a major financial setback. For Colorado and Utah businesses:

• High regional risk of weather damage: Hail, flooding, and wind affect more than 68% of inland marine claims locally, underscoring the need for precise policy boundaries.
• Economic drivers rely on transit: Construction, tech, and agriculture frequently ship goods both domestically and abroad, each with unique coverage needs.
• Regulatory requirements matter: State law in CO/UT mandates clear disclosures on what’s actually covered—including geographic limits.

What Most People Get Wrong

Many small business owners believe their inland marine policy automatically extends to international shipments. In reality, these policies typically only cover property within the U.S. and, in some cases, Canada. International ocean or air transit is excluded.

Another misconception is that a single policy can protect goods “from door to door,” even if they’re shipping equipment to another continent. This oversight often leads to uncovered losses—especially apparent after major weather events, as seen in the 2024 Weld County hailstorm ($3.4M in uninsured damage).

The Complete Picture

Inland marine insurance is designed to cover equipment, materials, and goods while moving over land, including throughout Colorado, Utah, and often within the contiguous U.S. It’s ideal for local contractors, tech companies, and agricultural producers with property in-transit or stored offsite within these boundaries.

However, international shipments (e.g., exports to Europe, Asia, or overseas trade shows) are excluded by standard inland marine policies. To protect goods in global transit—including across oceans—you must purchase a separate ocean marine or international cargo insurance policy. These provide the broader global coverage, including ocean, air, and international land shipments, that Colorado/Utah businesses need when sending assets abroad.

Always ask: Where will my goods be—and does my coverage follow them the whole way? If you’re uncertain, a local FoCoIns advisor can review your routes, contractual obligations, and recommend the right policy for each step of your shipment’s journey.

Making the Right Decision for Colorado and Utah Residents

Question 1: Are all segments of your shipment journey covered?

Break down your typical shipping process. For goods moving from Fort Collins to Salt Lake City, inland marine suffices. For shipments continuing to Europe or Asia, domestic coverage ends at the U.S. border or port.

• Review every handoff point (warehouse to port, port to foreign destination).
• Ask your broker which policy applies where.

Question 2: Could a single uncovered incident threaten your business?

Consider the real cost of losing property in transit. For example: An $85,000 prototype damaged abroad without global cargo coverage could mean a total loss, plus missed revenue from a critical trade show.

Question 3: How often do your business activities cross borders?

Future-proof your insurance as Colorado and Utah businesses become ever more interconnected. If you plan to expand shipping into Mexico, Canada, or overseas, proactively explore international transit solutions tailored to your industry and shipment value.