Thursday, April 25, 2013

Greater Level Of Protection Marine Insurance Policy

Most policies cover static items or locations that will be in a single known location. Inland marine insurance is designed to cover property and possessions that are mobile or in transit. This provides policyholders with a greater level of protection and flexibility when it comes to the terms of the policy. The modern versions of this type of policy evolved from the maritime shipping industry. It is now available to both private individuals as well as large corporations. There are three main areas covered by these policies.

Goods In Transit

The original purpose of inland marine insurance is still one of the largest reasons marine underwriters issue policies today. Goods in transit are any items moving from one location to another. This could be cargo in a commercial truck moving to a warehouse or property held in a temporary location waiting for transport. Modern policies also sometimes cover the transport of data and electronics allowing a business to protect databases physically moving from one place to another. The actual mode of transport does not matter when acquiring insurance. Although the word marine is in the title, it is not necessary for items to move across the water at any point to qualify.

Personal Property

Individuals often acquire inland marine insurance in order to protect personal possessions required for jobs that take place in many different locations. This includes tools for construction, valuable business items and even equipment like laptops and mobile devices used for business. Marine underwriters will also provide coverage for damage to personal possessions when moving between a work site and a repair service. Nearly any mobile item that is necessary for work or that is moving between a business and another location could receive protection under this type of floater policy. Exceptions are items like vehicles that receive coverage from other forms of insurance.

Coverage Gaps

Marine underwriters frequently create a policy to fill gaps in the coverage provided through other policies. Standard consumer and small business policies often specifically exclude certain items from coverage such as precious gems or digital data that is hard to quantify or that presents a large risk. The terms of an inland marine policy often fills gaps by covering hard-to-insure items or by including causes of loss not normally included in traditional property policies. This could mean open perils, named perils or all risk. Underwriters normally attach this type of policy and insurance cover.

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