When you first hear the term “inland marine insurance” you may think that it has to do with boating. Not exactly.
Marine insurance covers property when transported over water. Inland marine insurance covers property when transported over land. It may also cover property temporarily warehoused by a third party.
According to Couch on Insurance:1
The term “inland marine coverage” encompasses a variety of specialized insurance coverages, including coverage for loss or damage to goods while in transit. “Inland marine insurance” functions basically as a form of property insurance even though the policy may explicitly contemplate that the value of the property will be payable to the owner rather than the insured. Ohio Cas. Ins. Co. v. Carman Cartage Co., Inc., 262 Neb. 930, 636 N.W.2d 862 (2001).
Inland marine policies are also referred to as “floater” policies because they provide coverage regardless of the location of the covered property. This insurance is available to those who need to transport goods or property. However, it is usually purchased by commercial property owners, who transport or ship valuable goods or property and want to ensure they have coverage in the event of a loss.
1 2 Couch on Ins. § 20:49.