Businesses that rely on the transportation of goods by land use inland marine insurance to protect against damage or loss to products during the shipping process. If shipping is by watercraft, the right type of insurance to get is marine insurance. Here’s a look at what factors affect inland marine insurance costs.
When Should You Consider Inland Marine Insurance
The decision to select inland marine insurance for contractors should come down to the value of the assets you transport. If you frequently transport valuable items, you need an inland marine policy with high coverage limits. Having inland marine insurance in place can pay for damaged items when your auto coverage won’t pay. It functions as an additional financial safety net.
You never know when something bad might happen in the transportation process. A bad storm can delay a shipment, which can lead to late deliveries, causing customer dissatisfaction and future lost revenue. Even worse, items can get damaged by environmental elements or incompetent logistics handlers. You can’t predict when someone is unhappy about their job, causing them to make careless mistakes that can damage your valuables.
Anytime you rely on another entity to transport your possessions, whether it’s by land, water, or air, you’re taking a risk. If you ship goods often enough, you’re bound to deal with broken or missing items, late deliveries, and various ways products can get compromised.
You should also consider getting inland marine insurance if your business transports goods as a service. A business on wheels, such as a food truck, definitely needs inland marine insurance. It will pay for lost, damaged, or stolen kitchen equipment, which can be very expensive for a small business.
How Much Does Inland Marine Insurance Cost
Various factors affect the cost of inland marine insurance for contractors. Some of the key questions that determine costs revolve around how often and how far your items are transported from one place to another.
A typical price for commercial inland marine insurance starts around $750 per year and may be much higher, depending on the value of the items. Insurance agencies often charge about 4 percent of the value for tools and equipment. They usually charge less (1 percent) for scheduled tools and equipment. Your insurance agency may track the make, model, and a serial number of each item being transported.
Different industries pay different costs for inland marine insurance, depending on the risks involved that are associated with value. A building design company that transports building materials typically pays more in insurance than a retail outlet. Industries at the lower end of inland marine insurance costs include installation, cleaning, and landscaping firms. Some small firms that only periodically use transportation services can get inland marine insurance for under $200 per year.
Additional Factors That Are Needed to Be Considered
Independent, small contractors often struggle to build capital over time, making it difficult to purchase tools and equipment needed for production. If some type of natural disaster, theft, or vandalism occurs, the company can be wiped out instantly. The firms that survive such scenarios are those that have the right insurance in place to cover the costs of replacing tools and equipment.
Consult with Pittman Insurance Group, LLC
Learn more about protecting your enterprise from unforeseen disasters in land transportation with inland marine insurance for contractors when you contact us at Pittman Insurance Group, LLC. Our experienced team of insurance experts is ready to assist you.