Why is inland marine insurance important for my business?
Inland marine insurance is crucial in Colorado and Utah, where severe weather and frequent equipment movement put your valuable property at risk. It protects against high-cost losses from storms, theft, and transit incidents—helping your business avoid costly disruptions.
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Complete Guide to Why Inland Marine Insurance Is Important for Your Business
Why This Question Matters for Colorado and Utah Residents
Inland marine insurance addresses a major risk faced by Colorado and Utah businesses: damage or loss to valuable property and equipment that’s always on the move or stored in vulnerable locations. Our states see some of the nation’s most frequent severe hailstorms, unexpected floods, and major temperature swings—all of which can spell disaster for equipment that isn’t properly covered.
- Severe Weather Is the Top Threat: Colorado and Utah businesses face over 40 severe hailstorms per year, with average inland marine claims sitting at $28,000—ballooning to six figures in catastrophic events like the $3.4 million Weld County storm of 2024.
- Business Continuity Counts: Unprotected equipment downtime averages $18,000/day in lost revenue and extra expenses. Inland marine insurance helps ensure your business can repair or replace essential assets quickly, minimizing disruption.
- Regional Industry Needs: Construction, farming, and tech businesses in our region are especially vulnerable, moving equipment between sites and contending with unique risks like mountain snowmelt or urban theft in places like Denver or Salt Lake City.
What Most People Get Wrong
Many business owners believe their property or auto policy covers all valuable items, but standard insurance often excludes mobile equipment, property in transit, or gear stored off-premises. Without inland marine coverage, you could be left responsible for replacement costs if a Fort Collins hailstorm destroys your backhoe, or a Salt Lake trade shipment arrives damaged.
Another misconception: thinking “it won’t happen to me,” when only 35% of local small-to-midsize businesses have inland marine, despite 82% regularly transporting high-value goods. The reality? Weather, accidents, and theft are common and expensive in our region.
The Complete Picture
Inland marine insurance is essential for businesses that move, store, or depend on equipment away from a fixed location. It covers financial losses from weather, theft, transit accidents, and even business interruption costs when equipment is essential to operations. In Colorado and Utah, where recent storms led to $3.4 million in business losses and put 12 companies out of business, this coverage can mean the difference between a quick recovery and closing your doors for good.
With tailored options—including hail and flood endorsements, all-risk transit coverage, and business interruption extensions—FoCoIns helps you protect your assets and your bottom line. Instead of leaving recovery to chance, you’ll know you have a safety net designed for the realities of doing business in our region.
Making the Right Decision for Colorado and Utah Residents
Question 1: What are my region-specific exposures?
Identify all ways your business could lose or damage property based on Colorado and Utah conditions:
- Do you operate in hail/flood-prone counties like Larimer, Weld, or Utah Valley?
- Is your equipment stored outside or moved frequently between sites?
- Do seasonal risks (spring storms, harvest floods) increase your exposure?
Question 2: What’s the total cost if my equipment is out of commission?
Assess the real impact of a loss, including:
- Replacement/repair costs (average claim: $28,000; storms: up to $175,000+)
- Lost revenue ($18,000 per day average in business interruption)
- The potential for delays to clients or projects—especially in construction, agriculture, or tech logistics
Question 3: Does my current policy actually cover these scenarios?
Many general policies exclude property in transit, unlisted offsite equipment, or specific perils like hail/flood:
- Review existing policies with an independent agent who knows local exclusions and gaps
- Ask about specialty add-ons common for Northern Colorado/Utah, like hail endorsements, flood transit coverage, or scheduled high-value item protection
Future-proof your coverage by questioning assumptions and letting a FoCoIns specialist tailor solutions to your region-specific needs.
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Real World Examples
Fort Collins Food Truck – Weathering Hail on Harmony Road
Background: Maria operates a popular bakery food truck that travels throughout Fort Collins, serving events from Old Town to CSU’s campus. Her business relies on her $60,000 mobile kitchen and catering equipment.
Coverage: Inland marine policy with $70,000 limit, hail/flood endorsement, and $1,000 deductible.
Monthly Premium: $105/month ($1,260/year)
The Incident: In May 2024, a severe hailstorm struck while Maria’s truck was parked near Harmony Road. Large hail broke the generator, dented the roof, and ruined vital refrigeration equipment—right before her largest event of the year.
Total Claim Cost: $19,500 (generator: $5,000, refrigeration: $8,000, roof & body repairs: $6,500)
Maria's Cost: $1,000 (deductible) – Her insurer fast-tracked repairs and paid for a two-day rental replacement.
"If I hadn’t had the right coverage, I’d have lost a week of sales and thousands in event revenue. Inland marine made sure a huge storm was just a hiccup, not a disaster."
Salt Lake City Tech Startup – Transit Mishap on I-15
Background: Jason runs a growing electronics startup in downtown Salt Lake, often shipping high-value prototypes to West Coast clients. One shipment of $95,000 in test equipment was on route via I-15 headed for a major trade demonstration.
Coverage: Inland marine policy with all-risk transit coverage, $2,500 deductible, expediting expenses included.
Monthly Premium: $92/month ($1,104/year)
The Incident: A traffic accident caused the courier's truck to jolt, damaging sensitive components inside. The trade demonstration was three days away—failure to deliver would threaten the company’s new contract.
Total Claim Cost: $29,000 (equipment repairs: $22,000, overnight shipping for replacements: $7,000)
Jason's Cost: $2,500 (deductible) – His policy covered fast shipping and loaner units for the demonstration.
"FoCoIns showed me the value of having the right coverage—without it, our whole project could’ve failed. Instead, we delivered and grew our business."
Greeley Agricultural Hauler – Field Floods at Harvest
Background: Lauren manages a fleet for a Greeley-based agricultural supply company. During the fall harvest, she had $240,000 of farm equipment and seed in transit and temporarily stored near the South Platte River.
Coverage: Inland marine with flood and business interruption endorsements, $5,000 deductible.
Monthly Premium: $185/month ($2,220/year)
The Incident: Sudden flooding from snowmelt and rain submerged half her stored inventory and several pieces of equipment, stalling field operations for over a week.
Total Claim Cost: $112,000 (equipment: $70,000, inventory: $35,000, lost income: $7,000)
Lauren's Cost: $5,000 (deductible) – Her policy’s fast claims payout meant she avoided business closure.
"Seeing other local businesses close after the storm, I know that without our inland marine policy we’d be telling a very different story."
Avoid These Common Mistakes
Mistake #1: Relying Only on General Property or Auto Insurance for Mobile Equipment
What People Do: Many businesses in Denver, Provo, and Boulder assume their property or commercial auto policy extends to mobile equipment or goods in transit.
Why It Seems Logical: The main office or fleet vehicle is covered, so folks believe anything attached or temporarily stored is also protected—including off-site jobs and deliveries.
The Real Cost: When a severe hailstorm damages equipment being transported to a Grand Junction project, or gear is stolen from a Salt Lake warehouse, the business is left facing losses averaging $28,000 per claim—often with zero coverage, especially for property not at a “scheduled” location.
Smart Alternative: Review your coverage with a FoCoIns expert. Inland marine can be tailored to cover transit, off-site storage, and high-risk regional weather scenarios, closing the costly gaps standard policies miss.
Mistake #2: Skipping Hail or Flood Endorsements in High-Risk Regions
What People Do: Business owners trying to save on premiums opt out of extra perils coverage, especially for weather events, believing a major storm is unlikely.
Why It Seems Logical: Hail and flood events seem rare—until they hit. Opting for basic coverage lowers costs up front and seems sufficient when no claims have occurred recently.
The Real Cost: In Larimer, Weld, or Utah County, a single storm caused $3.4 million in damages and put 12 businesses out of operation. Lacking proper endorsements can mean zero payout for hail or flood—with out-of-pocket expenses reaching six figures and production delays costing $18,000/day.
Smart Alternative: Ask FoCoIns about region-specific endorsements (hail, flood, snowmelt) and make an informed decision based on real local risk—not just premium savings.
Mistake #3: Underinsuring Specialized or High-Value Equipment
What People Do: Some businesses set policy limits or valuation methods (actual cash value/depreciated value) too low for rare or custom machinery, believing losses are unlikely or costs will be recoverable.
Why It Seems Logical: Lower limits mean lower premiums, and specialized equipment often feels “safe” due to less frequent use or storage in secure facilities.
The Real Cost: After a Park City tech firm lost $120,000 in custom equipment during transit, they discovered their policy only paid $55,000 (depreciated value), not full replacement. The gap threatens cash flow, contracts, and even business survival.
Smart Alternative: Work with FoCoIns to match your coverage limits and valuation basis (e.g., replacement cost/agreed value) to your true asset risk. Our team helps ensure your investment is fully protected—before a loss occurs.
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