Why is it called "inland marine" insurance?
The term 'inland marine' insurance comes from its evolution out of ocean marine insurance, expanding coverage for goods and equipment transported 'inland'—across land rather than by sea.
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Complete Guide to Why It's Called Inland Marine Insurance
Why This Question Matters for Colorado and Utah Residents
Understanding inland marine insurance is crucial for business owners who transport property or use mobile equipment—especially in regions like Colorado and Utah, where weather risks and industry needs are unique.
- Regional Weather Risks: Colorado and Utah face severe hail, flooding, and wind events. Inland marine coverage often includes specific weather-related endorsements essential for local businesses. In 2024 alone, over $3.4 million in storm damages were reported in Northern Colorado, with an average weather-related claim of $28,000.
- Industry-Specific Needs: From construction sites along Denver’s I-25 corridor to agricultural operations in Weld County or tech manufacturing in Salt Lake City, movable property is often exposed to risks traditional property insurance doesn’t cover.
- Policy Accuracy & Compliance: Both states require clear policy language about what’s covered. Choosing the right inland marine policy helps businesses meet legal requirements, especially with new mandatory disclosures on weather coverage in Colorado.
What Most People Get Wrong
A common misconception is that 'marine' insurance always refers to ocean shipping. In reality, 'inland marine' evolved to cover goods, tools, and equipment transported overland—even if you never go near a coast.
Another mistake: assuming standard property policies will protect items during transit or in temporary locations. In fact, specialized inland marine coverage is essential for mobile risks—and 68% of inland marine claims in this region are from weather, not transit accidents.
The Complete Picture
Historically, insurance for transported goods began with ocean marine policies, insuring cargo at sea. As commerce moved further inland, companies needed protection for goods, equipment, or valuables traveling by train, truck, or even on-site (like heavy machinery). The name 'marine' remained, even though coverage expanded onto land—hence 'inland marine'.
Today, inland marine insurance protects movable property and equipment wherever it travels or is temporarily stored. In Colorado and Utah, policies often include endorsements for hail, flood, theft, and even business interruption caused by equipment downtime. With harsh weather and active industries, having the right inland marine policy can be the difference between a quick recovery and major financial loss for local businesses.
Making the Right Decision for Colorado and Utah Residents
Question 1: Have I identified all the movable property and exposures unique to my business?
Inventory every piece of equipment, tools, or goods that travel between sites or are temporarily stored away from your main location. Consider:
- How often is my property moved due to job sites, events, or clients (e.g., along Harmony Road in Fort Collins or between Provo and Salt Lake City)?
- Do I operate during peak risk times (such as hail season or fall harvest in Weld County)?
Question 2: Does my current policy cover weather- and transit-related losses?
Review policy specifics—many standard property or commercial policies exclude damages from hail, flood, or theft during transit. Inland marine insurance should explicitly cover these risks, including local perils like spring flooding or severe hailstorms seen across the Front Range or Wasatch.
Question 3: Am I protecting both replacement value and business continuity?
Consider not just the cost to replace lost or damaged items, but the true cost of business disruption. Ask your broker about business interruption or rental reimbursement extensions in your inland marine policy, especially as average downtime costs reach $18,000/day for regional businesses after major weather events.
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Real World Examples
Hailstorm Recovery for a Fort Collins Catering Business
Background: Maria, owner of a growing Fort Collins catering company, regularly transports a full set of commercial kitchen equipment to large event venues across Larimer County.
Coverage: Inland marine policy covering $60,000 of portable kitchen gear, including special endorsements for hail and theft.
Monthly Premium: $110/month ($1,320/year)
The Incident: During transport to a wedding at a ranch outside Loveland, a sudden hailstorm caused extensive dents and electrical damage to her ovens and prep tables.
Total Claim Cost: $18,400 (equipment repairs, temporary rentals, expedited delivery)
Maria's Cost: $1,000 deductible – the policy covered fast repairs, minimizing downtime to just two days
"I would have lost the event—and my reputation—if I hadn't had inland marine. I’m so grateful we added weather endorsements to my coverage."
Salt Lake City AV Rental: The Concert Mishap
Background: Jeff, who runs a Salt Lake City audio-visual rental company, delivers high-end equipment to major venues including the Eccles Theater downtown.
Coverage: Inland marine policy insuring $100,000 in AV gear, with special transit damage and theft protection.
Monthly Premium: $185/month ($2,220/year)
The Incident: On the way to a weekend concert, his delivery van was rear-ended on I-15, damaging speakers and lighting panels.
Total Claim Cost: $22,500 (equipment replacement and fast-track shipping for backup units)
Jeff's Cost: $1,500 deductible – insurance allowed him to fulfill the contract and avoid $10,000 in penalties
"If I’d relied only on my business property policy, I’d have been out tens of thousands. This coverage truly kept us in business when it mattered most."
Utah County Farm: Flood Loss and Fast Recovery
Background: Rachel manages a family farm near Spanish Fork, transporting harvest equipment between fields and storage lots during the busy fall season.
Coverage: Inland marine policy covering $150,000 in farm machinery, with added flood transit endorsement.
Monthly Premium: $155/month ($1,860/year)
The Incident: Heavy rains and spring runoff caused flash flooding, damaging harvesters left on an access road between fields overnight.
Total Claim Cost: $54,000 (engine replacements, cleanup, temporary machinery rental)
Rachel's Cost: $2,000 deductible – plus swift claims service that kept harvest on track
"We’d have lost the entire season if insurance hadn’t paid out quickly. Our agent’s advice about adding flood coverage for equipment in transit saved the business."
Avoid These Common Mistakes
Mistake #1: Relying On Standard Property Insurance for Equipment in Transit
What People Do: Many Colorado and Utah businesses assume their regular commercial property policy will cover tools, equipment, or goods while in transit or at temporary locations.
Why It Seems Logical: Property insurance is seen as 'comprehensive', so it's natural to expect all your assets are covered wherever they go.
The Real Cost: After Larimer County's May 2024 hailstorm, 12 underinsured businesses faced equipment losses up to $75,000, most of which was ineligible for claim under regular policies—leading to permanent closures in some cases.
Smart Alternative: Work with a FoCoIns inland marine specialist to review your business exposures. We'll ensure your mobile property is accurately covered for all the places and scenarios you operate in—at no extra cost for the assessment.
Mistake #2: Underestimating Weather Risks and Not Adding Endorsements
What People Do: Businesses skip specialized hail or flood endorsements, thinking those events are rare or not worth the extra cost.
Why It Seems Logical: Severe weather feels infrequent—until it happens to you, and basic policies may appear cheaper upfront.
The Real Cost: With 68% of regional inland marine claims weather-related and an average claim of $28,000, lacking endorsements can mean full out-of-pocket losses or months of business interruption (average $18,000/day in lost revenue).
Smart Alternative: Discuss local risks with your broker. FoCoIns helps you add targeted endorsements that match your exposures—potentially saving tens of thousands in a single event and providing peace of mind.
Mistake #3: Choosing Actual Cash Value Instead of Replacement Cost
What People Do: To save on premiums, some businesses select low coverage amounts or 'actual cash value' (depreciated value) on policies for their movable equipment.
Why It Seems Logical: The upfront savings can make this option seem appealing, especially if equipment is older or rarely used.
The Real Cost: When high-value equipment like farm harvesters or specialized AV gear is damaged—especially during severe weather or transit—you could be reimbursed only a fraction of replacement cost, forcing a major out-of-pocket spend or loss of business opportunity.
Smart Alternative: FoCoIns recommends evaluating true replacement cost or agreed value options, even for aging equipment, to make sure you can truly recover after a loss. We’ll walk you through realistic scenarios so you’re never caught short-handed.
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