Here's something that confuses people about inland marine insurance: despite the name, it has nothing to do with boats or oceans. The term comes from the coverage's historical roots in marine insurance, but today it's all about protecting your business property when it's on the move. If you're a contractor hauling tools to job sites, a photographer transporting equipment to shoots, or any business owner whose valuable assets don't stay put in one location, this coverage is designed specifically for you.
The reality is that standard commercial property insurance covers items at a fixed location—your office, warehouse, or shop. The moment you load your equipment into a truck or take it to a client's location, that coverage often stops. Inland marine insurance fills that critical gap, protecting your business assets wherever they go.
What Inland Marine Insurance Actually Covers
Think of inland marine insurance as protection for everything that moves with your business. This includes your tools and equipment while they're in transit, at temporary job sites, or even stored in your vehicle overnight. If you're a contractor, that means your power tools, ladders, scaffolding, and machinery are covered whether they're in your truck, at a construction site, or temporarily stored at a client's property.
But it goes beyond just your owned equipment. Inland marine policies can also protect rented or leased equipment, borrowed items, and even materials you've purchased for a specific job. If you ordered $10,000 worth of custom materials for a project and they're damaged in transit or stolen from the job site, your inland marine policy can cover that loss. Some policies even extend coverage to your subcontractors' equipment while it's on your job site, which can prevent disputes and protect you from liability if their tools are damaged or stolen.
The coverage typically protects against theft, damage from accidents, weather-related damage, and loss. If your equipment is damaged in a vehicle accident while being transported, stolen from a job site, or ruined by a sudden rainstorm before you can secure it, inland marine insurance has you covered. Some insurers even offer replacement cost coverage for equipment that's less than five years old, meaning you'll get enough to replace it with new equipment rather than just its depreciated value.
Why This Coverage Is Essential for Your Business
Every year, $1 billion worth of equipment is stolen from construction sites across the United States. Loaders are the most commonly stolen equipment, but thieves target everything from expensive power tools to portable generators. If you're a contractor or tradesperson who relies on tools and equipment to earn a living, a single theft could shut down your business for days or weeks while you scramble to replace what was stolen.
But theft isn't the only risk. Your tools and equipment face constant exposure to damage—they could be damaged in a vehicle accident during transport, crushed by falling debris at a job site, or destroyed by weather events. Without inland marine insurance, you're personally on the hook for replacing or repairing everything. For many small businesses, a major equipment loss could be financially devastating.
The inland marine insurance market has grown significantly, reaching $28.5 billion in 2024 and expected to hit $42.7 billion by 2033. This growth reflects how many businesses are recognizing the importance of protecting their mobile assets. Industries like construction, transportation, logistics, and any field service business depend on this coverage to operate without constantly worrying about catastrophic equipment losses.
What You'll Actually Pay for Coverage
The cost of inland marine insurance is surprisingly affordable compared to the value it protects. Small businesses typically pay around $350 annually for basic coverage, while the average cost across all businesses is about $800 per year to cover $100,000 worth of property with a $1,000 deductible. That works out to roughly $0.80 per $100 of coverage—a small price to pay for protecting the tools and equipment your business depends on.
For contractors, inland marine policies usually start at around $750 in premium and increase based on your total insured values. Insurance companies typically charge about 4% of the value for miscellaneous tools and equipment, and around 1% for scheduled equipment that you've specifically listed on your policy. So if you have $50,000 worth of scheduled equipment, you might pay around $500 annually just for that portion of coverage.
Your specific premium depends on several factors: the total value of your business property, your policy limits, your industry's risk profile, and your claims history. Industries with higher risk—like construction, transportation, and manufacturing—may face higher premiums because of the increased likelihood of equipment loss or damage. However, the market has been relatively stable in 2024-2025, with many policyholders seeing flat renewal rates or even single-digit reductions if they haven't had recent claims.
How to Get the Right Coverage for Your Business
Start by taking inventory of everything you need to protect. Make a detailed list of your tools, equipment, and any materials or goods that regularly move with your business. For expensive items, note the make, model, serial number, and current value. This inventory will help you determine how much coverage you need and make filing a claim much easier if something happens.
When shopping for coverage, you'll typically have options for standard or custom policies. Standard policies work well for many small businesses with straightforward needs, while custom policies let you tailor coverage for unique situations—like if you need to cover extremely valuable equipment, international shipments, or specialty items. You can often bundle inland marine insurance with your other business insurance policies, which might save you money and simplify your coverage management.
Pay attention to the details of what's covered. Ask whether the policy offers replacement cost or actual cash value coverage—replacement cost is generally better because it gives you enough to buy new equipment rather than just compensating you for your old equipment's depreciated value. Check the policy's coverage territory (most cover anywhere in the United States, but verify this), and understand your deductible and any coverage limits for specific types of items.
The good news is that the inland marine insurance market is competitive and growing. Major insurers have expanded their offerings, with some launching new product lines specifically designed for different industries and available in all 50 states. This means you have options, and it's worth getting quotes from multiple insurers to find the best combination of coverage and price for your specific business needs. Don't just focus on the premium—look at the overall value, including coverage limits, deductibles, claims service reputation, and any additional benefits or services the insurer offers.
