How is inland marine insurance different from property insurance?

Complete Guide to How Inland Marine Insurance Differs from Property Insurance

Why This Question Matters for Colorado and Utah Residents

Along Colorado’s Front Range and Utah’s Wasatch Front, many businesses move tools, equipment, and inventory between jobsites, storage yards, and customers. Standard commercial property insurance is designed for assets at a fixed, listed location, while inland marine protects movable property and goods in transit. Getting this right helps avoid uncovered losses from hail on I-25, snowmelt flooding near canyons, or theft during a quick stop along I-15.

• Mobility risk is high here: Construction, agriculture, and tech shipments routinely travel between Fort Collins–Denver–Colorado Springs and Salt Lake City–Provo–Logan.
• Weather drives losses: In Northern Colorado, 68% of inland marine claims are weather-related, averaging about $28,000 per claim, with business interruption costs that can reach $18,000 per day if operations stall.
• Coverage gaps are common: Only 35% of small-to-midsize businesses in Larimer County carry inland marine despite frequently transporting valuable equipment.

What Most People Get Wrong

Many assume their property policy covers equipment and inventory everywhere. In reality, most property policies limit coverage to the premises (and sometimes a small off-premises extension with low sublimits).

Others think inland marine is only for “boat cargo.” Historically misnamed, it actually covers property that moves—from contractor tools to prototypes, fine art, and installation projects.

The Complete Picture

Property insurance focuses on buildings and contents at your scheduled address. It’s ideal for assets that stay put. Inland marine covers mobile equipment, tools, and goods in transit or offsite, often via specialized forms: contractors’ equipment, installation floaters, bailee coverage (property of others in your care), dealer’s open lot, and fine arts floaters.

In Colorado, regulators align with NAIC guidance that inland marine applies to goods in transit and movable property, with disclosures such as bailee liability. Carriers increasingly offer hail and flood endorsements and optional extended transit coverage after severe storms (e.g., the May 2024 event causing about $3.4M in damage across Weld/Larimer). Utah businesses along I‑15 and I‑80 face similar transit and wind exposures, plus mountain-pass weather volatility that can delay or damage shipments. For many CO/UT businesses, the best protection is both: property for on‑premises assets and inland marine for everything that moves.

Making the Right Decision for Colorado and Utah Residents

Question 1: Do my assets leave the premises regularly?

List what moves: tools, demo units, rental gear, prototypes, art, or customer property in your care. If items travel between Fort Collins, Denver, Boulder, SLC, Provo, or Park City—or sit at jobsites—consider inland marine.

• If you frequently use I‑25 or I‑15 corridors, you face hail, wind, theft-from-vehicle, and collision risks that property policies may not cover offsite.
• For agriculture or construction, add hail/flood endorsements; snowmelt and canyon flash floods increase risk seasonally.

Question 2: How should my movable property be valued?

Decide between replacement cost, agreed value (for specialized gear), or actual cash value (often cheaper but pays less). Inland marine can schedule high-value items and blanket the rest. Pair with practical deductibles you can afford during a $10,000–$30,000 repair scenario.

Question 3: What endorsements close my regional gaps?

For Colorado’s Front Range and Utah’s Wasatch Front, consider: hail and flood transit extensions, rental reimbursement for downtime, bailee coverage for client property, and installation floaters for materials until signed off. These can prevent uncovered losses and shorten recovery time when weather or transit issues strike.