Inland marine is an often-overlooked coverage for contractors. When general liability, workman’s comp, and excess take the spotlight, it’s easy to bind your inland marine policy without thinking about it. However, there a few things that a contractor can explore that can save money and increase coverage with your inland marine policy.
First, if a contractor is running heavy equipment over the interstate, such as specialized job-site equipment running on a tractor base, ask your carrier about moving the physical damage coverage to the inland marine policy rather than the auto policy. If the carrier is open to this coverage structure, you may be able to find cheaper rates structuring your policy this way.
Second- review your scheduled equipment and miscellaneous tool coverage. Often the miscellaneous tool limits are set something like $500 per item/$2500 per occurrence. If you have a lot of tools in the $1,000-$2,000 range that are scheduled, and you have more than $2500 worth of tools on any given vehicle, make sure that you are covered. See if your carrier is willing to raise the “per item” amount higher than your small tools and then raise your “per occurrence” to whatever the maximum that is present on any given truck. That would put your limits at something like $2500 per item and $20,000 per occurrence. You may find that this is a cheaper and better way to cover your tools.
Finally, check the theft exclusions on your policies. Some policies may exclude small tool theft from vehicles under certain circumstances. You need to understand under what circumstances you are covered; and, if the exclusions on the policy nullify what you are paying for, your agent needs to do everything they can to negotiate with the carrier so that your tools and property are covered under any circumstance.
Inland marine doesn’t have to be overlooked. Make sure your agent is taking the time to explain what is covered, what isn’t, and how you can pay as little as possible for the most coverage possible.
Wyatt Rickles
205-913-2880
