In the construction industry, equipment and materials are always on the move, from warehouse to job site and sometimes even between multiple projects in a day. Unfortunately, this mobility comes with risk: tools can be stolen, materials can be damaged in transit, and third-party storage mishaps can leave you holding the bill. That’s where inland marine insurance becomes an essential piece of your risk management strategy.
Although the name might suggest otherwise, inland marine insurance has nothing to do with watercraft. Rather, it provides coverage for business property while it’s being transported or stored away from the main job site.
Why It’s Crucial for Construction Firms
Whether you’re hauling lumber to a job site or storing HVAC units in a third-party warehouse, any unexpected incident such as a fire, theft, or rollover accident can derail your project and result in significant financial losses. Inland marine insurance steps in to cover repair or replacement costs for a wide range of scenarios, including:
- Collisions and rollovers
- Fire or water damage
- Theft during transport or off-site storage
- Accidental drops while unloading
For builders, the most relevant forms of inland marine insurance include:
1. Builder’s Risk Coverage
Also known as course of construction insurance, this coverage protects your in-progress projects, and the materials used on-site. It begins when construction materials arrive and continues until the project is complete. This is especially important for framing materials, electrical equipment, or structural components stored on-site and vulnerable to weather or theft.
2. Contractor’s Tools and Equipment Coverage
Your bulldozers, backhoes, generators, and even portable tools are the lifeblood of your business. This equipment floater policy protects movable equipment while it’s being transported or used at multiple job sites. For construction teams who frequently work off-site, this coverage can save thousands in replacement costs.
3. Installation Floater Coverage
This policy covers materials waiting to be installed, such as piping, electrical panels, or cabinetry, whether they are in storage or in transit. If a hailstorm damages these materials while stored in your warehouse or at a client’s location before installation, the policy can help cover the loss.
Other Valuable Coverages
While more common in other industries, motor truck cargo coverage (for transport in your company’s vehicles) and bailee coverage (for third-party goods in your care) may also be relevant if you’re involved in material delivery or subcontractor work.
For construction businesses, managing equipment and materials safely isn’t just good practice, it’s essential to keeping projects on time and on budget. Inland marine insurance fills the coverage gaps left by standard commercial property policies and ensures that when things go wrong in transit or off-site, your operations don’t come to a halt.
Contact McHugh Insurance Group to review your coverage options and ensure your construction company is fully protected from mobile and off-site risks.