Businesses transporting goods, equipment, or valuable assets need insurance that protects against loss or damage. Inland and ocean marine insurance are two options designed to safeguard property in transit. While both types of policies cover moving goods, they apply to different transportation methods and risks.
What Ocean Marine Insurance Covers
Ocean marine insurance protects cargo, ships, and related equipment while transported over water. This policy has been used for centuries to cover losses from shipping accidents, piracy, and harsh weather conditions. Businesses that import or export goods by sea rely on this coverage to protect against financial losses.
Key components of ocean marine insurance include:
- Cargo Insurance: Covers goods shipped by sea against damage, theft, or loss during transit.
- Hull Insurance: Protects the physical structure of the vessel against risks such as collisions, grounding, or extreme weather.
- Liability Coverage: Protects the ship if its operations damage other vessels, cargo, or port facilities.
Companies involved in international trade, commercial fishing, and marine construction depend on ocean marine insurance to protect their assets. This coverage is essential for businesses moving goods across international waters.
Also Read: Starting a Business? Top Commercial Insurance Policies to Consider
What Inland Marine Insurance Covers
Inland marine insurance covers goods, equipment, and property transported on land. Despite its name, this coverage applies to trucks, trains, and other land-based transportation methods rather than marine vessels. For protection, businesses that ship high-value equipment, tools, or products rely on inland marine insurance.
Key aspects of inland marine insurance include:
- Cargo Coverage – Protects products while being transported by truck or rail.
- Contractors’ Equipment Insurance – Covers tools and machinery used in construction, installation, or repair work.
- Fine Arts and Exhibition Coverage – Protects valuable artwork, collectibles, or trade show displays in transit or temporary storage.
This type of insurance is essential for construction companies, technology firms, and retailers that frequently move high-value items. It protects against theft, damage, or unexpected events while goods are transported or stored away from their primary location.
How These Insurance Policies Differ?
While both policies cover property in transit, they apply to different types of transportation. Ocean marine insurance is designed for shipments traveling by sea, while inland marine insurance protects goods moving on land. The risks covered also vary, with ocean policies addressing hazards like ship collisions and piracy, whereas inland policies focus on theft, accidents, and damage during overland transport.
Businesses involved in logistics, manufacturing, or retail may need both types of coverage. Companies importing goods by sea will require ocean marine insurance, while those distributing products across the country will benefit from inland marine insurance. Choosing the right coverage depends on how and where goods are transported.
Related Article: Inland Marine Insurance for Small Businesses: How It Works?
Get the Right Insurance for Your Business with Premier Risk Insurance
Protecting valuable assets during transit is essential for shipping, construction, and distribution businesses. Whether your goods travel by sea or land, the right coverage can help prevent financial losses.
At Premier Risk Insurance, we help businesses secure Inland and ocean marine insurance to protect their shipments. Contact us today or call our team at (516) 599-8484 to find the coverage that fits your needs.
