Does the policy cover property off-site or in transit?

Complete Guide to Off-Site and In-Transit Property Coverage

Why This Question Matters for Colorado and Utah Residents

Business rarely stays in one place, especially in industries like construction, logistics, or mobile services. Both Colorado and Utah business owners face unique local risks as property moves between sites or travels on state highways. Understanding what’s covered—and what’s not—helps safeguard your bottom line.

• Severe Weather and Natural Hazards: Hail, wildfires, and floods are common in Colorado and Utah. Damaged property on a job site or in transit may not be covered under a standard policy.
• Frequent Property Movement: From Fort Collins tech firms delivering gear through I-25, to Salt Lake City contractors transporting equipment, local businesses regularly move valuable property off premises.
• Theft and Vandalism Risks: Colorado’s property crime rates in commercial areas like Larimer County mean mobile assets are especially vulnerable when off-site.

What Most People Get Wrong

Many assume that commercial property insurance provides blanket coverage for property anywhere it goes. In reality, standard policies are designed to protect property located at the insured premises. Items off-site, in the back of a work truck, or traveling between locations are usually excluded unless you've added specific endorsements.

Another common misconception is that a general business owner’s policy is sufficient for mobile operations or frequently transported assets—when in fact, inland marine coverage or special endorsements are almost always required for full protection.

The Complete Picture

Standard commercial property policies in Colorado and Utah typically insure buildings, fixtures, and inventory located at the address listed on the policy. If you transport business property to a new job site, a trade show in Denver, or client offices in Provo, that property is often not covered for loss or damage once it leaves your primary location, unless your policy includes inland marine insurance or an off-premises property endorsement.

Inland marine policies were designed for this very reason: to protect goods, equipment, and other assets that move frequently or are stored at multiple locations. In high-risk states like Colorado—where hail is the #2 claim driver nationally—and in Utah with frequent highway transit, it’s especially important to review your policy terms and work with a knowledgeable agent to fill any gaps. Statistically, up to 42% of Colorado/Utah businesses are underinsured for flood and off-site risks, making professional guidance essential to prevent large uninsured losses.

Making the Right Decision for Colorado and Utah Residents

Question 1: Where does your business property actually spend its time?

Assess how often your assets leave your main location and whether they travel statewide or cross state lines. Consider:

• Do you deliver products or equipment to job sites (e.g., along I-25 in Colorado or I-15 in Utah)?
• Is valuable property stored temporarily off-site, such as at events or warehouses?

Question 2: How would a loss off-site impact your cash flow?

Think through realistic scenarios: If $25,000 worth of equipment were stolen from a work site, could you easily absorb the loss—or would it disrupt ongoing projects and payroll? Inland marine coverage can be tailored with deductibles and limits that fit your business's budget and risk.

Question 3: Is your insurance reviewed regularly as you add new locations or mobile operations?

As your business grows, make regular policy reviews part of your strategy. Ensure all new uses, equipment, and locations are covered, especially if your expansion includes delivery, field service, or construction across Colorado and Utah. A local agent can help you adapt coverage to changes and avoid gaps that can cost tens of thousands in uncovered losses.