Inland Marine Insurance

Inland marine insurance is a type of property insurance that covers your business’s cargo, freight, and goods when they are being shipped or transported to their final destination. If your business is transporting goods via truck, train, ship, or any other mode of transportation, then you will need to purchase inland marine insurance to protect your freight in the event that it is damaged or lost. Inland marine insurance can be broken into two categories: public and private. Public inland marine insurance policies cover the general public by providing broad coverage on common shipments and goods. Private inland marine policies are typically more tailored and specific to individual companies who ship goods frequently on a smaller scale. This guide will explain everything you need to know about Inland Marine Insurance in Montana so that you can make an informed decision with your business’s best interests in mind.

Why do you need Inland Marine Insurance?

Inland marine insurance is a very broad insurance policy that covers almost every conceivable incident that could occur to your business’s freight. By purchasing inland marine insurance, you can rest assured knowing that your business is protected in the event of a covered loss. If your shipments are damaged or lost, it is generally the insured party’s responsibility to pay for the repairs or replacement of the lost or damaged freight. In general, this means that your business will need to pay out of pocket. This can seriously impact your cash flow and profit margins. By purchasing inland marine insurance, you will avoid this scenario and be able to focus your attention on growing and improving your business. Inland marine insurance is also commonly referred to as marine coverage. It is extremely important to understand that inland marine insurance does not cover marine losses. Marine losses are covered under a separate marine policy. If your business is transporting goods via water, then you will need to purchase a marine policy. If you are unclear about the difference between marine and inland marine insurance, then this guide will help you understand the differences.

Types of Inland Marine Insurance in Montana

There are several types of inland marine insurance policies. Each policy covers the general public through a common carrier. Depending on the specific coverage that you need, you can purchase a standard inland marine policy or a higher limit policy. A standard inland marine policy will generally cost less than a higher limit inland marine policy. Standard inland marine policies generally cover up to $100,000 per shipment. Higher limit policies cover more than $100,000 per shipment but can be more expensive. There are several types of standard policies. Comprehensive Insurance covers damage to your goods from all perils except for what is excluded under the policy. It also covers damage to other people’s property that your cargo may have come into contact with. Excess Insurance will only cover your specific loss if you have an underlying policy that is ineffective or has been exhausted. Excess policies come in two forms: supplementary and subrogation. Supplementary policies will cover your loss up to the amount of coverage that you purchased. Subrogation policies will cover your loss but with a deduction. Ocean Marine Insurance covers your freight while it is traveling on a ship. It covers your freight against all perils (with the exception of war and nuclear hazards) while it is being shipped. Air Marine Insurance covers your freight while it is being transported via plane. It covers your freight against all perils (with the exception of war and nuclear hazard) while it is being shipped.

Excluded Perils under Inland Marine Insurance

Generally, a standard policy will not cover your business’s freight if it is damaged or lost due to these perils:

• War – This peril will cause your freight to be covered if it is damaged or destroyed as a result of a war that has been declared by the United States. If there is a war that has not been declared by the United States, then your freight will not be covered.
• Nuclear Hazard – This peril will cause your freight to be covered if it is damaged or destroyed as a result of radioactive material.
• Act of God – This peril will cause your freight to be covered if it is damaged or destroyed as a result of a storm, earthquake, flood, tidal wave, or any other natural disaster that is beyond your control.
• Undue and Prejudicial Delay – This peril will cause your freight to be covered if it is damaged or destroyed as a result of being held in a port due to weather, labor disputes, or other unforeseen circumstances.
• Wear and Tear – This peril will cause your freight to be covered if it is damaged or destroyed as a result of normal wear and tear.