What is inland marine insurance?

Complete Guide to Inland Marine Insurance

Why This Question Matters for Colorado and Utah Residents

Many Colorado and Utah businesses operate in industries—like construction, agriculture, and technology—where valuable equipment and property are constantly on the move or stored at changing locations. Understanding inland marine insurance is vital because:

• Severe Local Weather: Northern Colorado alone suffers over 40 hailstorms a year, and Utah’s variable climate brings rapid weather swings, making mobile property especially vulnerable.
• Transit & Temporary Storage Risks: With only 35% of small to midsize businesses holding inland marine coverage despite 82% having valuable equipment “on the go,” many companies face major gaps in protection.
• Economic Impact of Losses: The average inland marine claim in the region is $28,000—recent Weld County storms caused $3.4 million in business equipment damage. Lacking proper coverage can threaten your business’s survival.

What Most People Get Wrong

Many business owners assume their standard property or commercial package policy automatically protects equipment, materials, or goods outside their main address. In reality, most business property coverage only applies to assets at a listed location. Movable property, tools between job sites, and goods in transit are typically excluded.

Another frequent mistake: overlooking Colorado- and Utah-specific hazards like hail, flooding, and snowmelt—perils that account for nearly 70% of inland marine claims in the region, but which often require special coverage endorsements.

The Complete Picture

Inland marine insurance is specialized coverage designed for business assets that don’t stay put—think construction tools, rental equipment, electronics, and agricultural machinery. It covers risks like theft, accidents, and severe weather while your items are in transit or at locations other than your headquarters.

Local nuance: In Colorado and Utah, proper inland marine policies should include endorsements for hail and flood damage, and may offer business interruption benefits if equipment loss halts your projects. Typical annual premiums run $800–$5,000 depending on value, usage, and risks. With severe weather and theft on the rise, having this specialized coverage is the difference between business continuity and closure after a major event.

Making the Right Decision for Colorado and Utah Residents

Question 1: What’s the true cost if your key equipment is damaged?

Consider both replacement/repair costs and income lost while equipment is unusable. For example, a $50,000 excavator out for two weeks could cost $35,000 in lost revenue—on top of repairs.

• Assess downtime impact on projects and client commitments
• Check if your policy includes rental reimbursement or business interruption coverage

Question 2: Are your regional weather and transit risks truly covered?

Colorado and Utah face frequent hailstorms, floods, and wild temperature swings that damage mobile property. Confirm your policy has:

• Named peril endorsements—hail, flood, snowmelt—for your area
• Protection for goods/equipment in transit, not just at storage
• Coverage for third-party claims (if you’re trusted with clients’ property)

Question 3: Does your policy’s valuation method fully protect you?

Standard “actual cash value” (ACV) coverage may not pay enough for specialty or custom equipment. For unique or high-value property, ensure your policy uses replacement cost or agreed value—especially important for tech, agricultural machinery, or custom gear common in the Front Range and Utah’s innovation corridor.