Business Insurance

Inland Marine Insurance

Inland marine insurance fills gaps in commercial property coverage by insuring property that moves, is stored off-site, or requires specialized valuation.

Last reviewed: May 2026 · Editorial methodology

Definition

Inland marine insurance traces its origins to maritime law and has evolved to cover any property that is mobile, in transit, or requires special coverage not found in standard commercial property policies. Contractors rely on it to cover tools and equipment at job sites — a plumbing contractor with $50,000 in tools might pay $500–$1,500/year for an equipment floater. It also covers goods in transit between locations, construction equipment, fine art collections, and medical equipment carried by home health workers. Unlike standard commercial property, which covers property at a fixed location, inland marine policies follow the insured property wherever it goes, up to the policy's geographic territory, usually within the continental U.S. Agreed value vs. actual cash value settlement is a critical policy feature to verify — ACV deducts depreciation, which can devastate a claim for aging but functional equipment. Businesses that lease or borrow equipment from others may need to add a bailee coverage endorsement to protect property that belongs to clients or vendors.

Where this term matters

Business Insurance →/business/contractor-insurance →/business/bop →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Builders Risk InsuranceBuilders risk insurance covers the structure, materials, and equipment at a construction site against fire, theft, vandalism, and weather damage during the build.Business Owner's Policy (BOP)A BOP packages general liability and commercial property insurance into one affordable policy, designed specifically for small to mid-sized businesses.Commercial Package Policy (CPP)A Commercial Package Policy (CPP) offers mid-sized and larger businesses a flexible framework to bundle multiple coverage lines into one policy, providing broader customization than a standard BOP.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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