What does inland marine insurance cover?

Complete Guide to Inland Marine Insurance Coverage

Why This Question Matters for Colorado and Utah Residents

Across Colorado and Utah, businesses move valuable property every day—contractors hauling tools down I-25, galleries transporting art to Park City, and tech teams sending prototypes between Boulder and Fort Collins. Local risks like Front Range hail, sudden snowmelt flooding, canyon winds, and mountain travel make coverage for property in motion essential.

• High weather exposure: In Northern Colorado, weather-related inland marine claims average about $28,000, and hail/flood events account for most losses.
• Property on the move: Tools, rental equipment, and goods frequently travel on I‑25/I‑70 in CO and I‑15/I‑80 in UT, increasing theft and transit-damage risk.
• Gaps in standard policies: A BOP or commercial property policy often limits coverage offsite; inland marine follows your property wherever it goes.

What Most People Get Wrong

Many assume their business property is covered anywhere. In reality, standard property coverage is location-based and often excludes or limits property in transit or at temporary sites.

Another misconception is that inland marine is only for marine or shipping companies. It’s for movable property of all kinds—contractors’ tools, dealer inventory, fine art, instruments of communication/transportation, and more.

The Complete Picture

Inland marine insurance covers movable property and goods in transit, plus property at temporary locations like job sites, trade shows, storage yards, or while on loan or exhibit. Common covered categories include: tools and mobile equipment (contractors’ gear, rental equipment), fine art (on display or in transit), builder’s risk (materials and work in progress), and instruments of communication/transportation (signs, fences, bridges—varies by policy).

Coverage is typically written on an all-risk basis for direct physical loss, including theft, collision, vandalism, and specified weather perils. In Colorado and Utah, endorsements for hail and flood/snowmelt are especially important. Regional benchmarks show premiums commonly range from 0.1%–3% of insured value; small policies may be $800–$5,000 annually depending on values, storage, use, and loss history. Local data shows hail and flooding make up a majority of claims in Northern Colorado, with average weather claims around $28,000.

Key options to consider: replacement cost (RCV) vs. actual cash value (ACV), scheduled vs. blanket itemization, rental reimbursement, bailee coverage (if you care for others’ property), and business interruption/extra expense tied to equipment downtime. Always review exclusions such as wear and tear, mechanical breakdown, or inherent vice (common in fine art policies).

Making the Right Decision for Colorado and Utah Residents

Question 1: Where does your property travel and sit?

Map typical routes and locations—e.g., Fort Collins to Denver via I‑25, Salt Lake City to Provo via I‑15, Park City exhibits, or temporary jobsites in Colorado Springs. Match limits and endorsements to these exposures.

• Choose blanket coverage for many mid‑value tools moving daily; schedule specific high‑value items.
• Add hail and flood/snowmelt endorsements if storing outdoors on the Front Range or along Wasatch canyons.

Question 2: How would downtime impact cash flow?

Quantify lost revenue if a $60,000 skid steer earning $2,500/day is down two weeks. Consider rental reimbursement and business interruption/extra expense so operations continue during repairs.

Question 3: Do valuation and limits match replacement reality?

For specialized or custom equipment, use replacement cost or agreed value and set limits reflecting current market lead times. For art and prototypes, confirm professional packing and bailee provisions for items in your care.