Inland Marine insurance is a broad category of coverage that protects property in transit, at temporary locations, or away from a fixed premises. For contractors and mobile businesses, it is one of the most important — and most underappreciated — coverages in the program.
Why Contractors Need Inland Marine
A standard Commercial Property policy covers property at a specific, scheduled location. It may provide limited coverage for property temporarily away from that location — but the limits are typically insufficient for contractors who keep tools and equipment at multiple job sites, in vehicles, or in storage yards.
Inland Marine fills that gap with coverage that follows the property wherever it goes.
What Contractor's Equipment Policies Cover
- Power tools and hand tools
- Heavy construction equipment (excavators, lifts, compressors)
- Rented or leased equipment in your care
- Materials and supplies stored on job sites
- Equipment on or off the project site
Coverage is typically written on an "all risk" or "open perils" basis — meaning it covers all direct physical loss except specific exclusions.
Common Exclusions
- Mechanical or electrical breakdown
- Wear and tear
- Mysterious disappearance (without evidence of theft)
- Employee dishonesty (requires Crime coverage)
Scheduling Equipment vs. Blanket Coverage
Policies can be structured to cover:
- Scheduled items: Specific items listed by description and value — good for high-value equipment
- Blanket limits: A total limit applies to all covered property — simpler to manage and less likely to result in underinsurance gaps
Installation Floaters
A specialized form of Inland Marine — Installation Floaters — covers materials and equipment from the time they leave the supplier's premises through installation, until they are accepted by the owner. Critical for contractors who supply and install mechanical, electrical, or specialty equipment.
Work With Capital & Co
Capital & Co can review your current property program, identify off-premises coverage gaps, and structure an Inland Marine program that keeps your tools and equipment protected wherever the job takes you.
Questions About Your Coverage?
Speak with Capital & Co about a strategy built for your business.
