Commercial Property and Inland Marine Insurance

Commercial Property Insurance covers the physical assets a business owns or leases, including buildings, machinery and equipment, inventory and furniture.

It protects against losses caused by events like fire, theft, vandalism, storm damage, and some types of water damage like burst pipes. Depending on the policy, it may be written as specified/named perils (specific events listed) or open perils/all-risk (broader, covering all risks except those explicitly excluded).

Any company that owns costly assets needs to protect them. For businesses in sectors like cannabis cultivation, advanced manufacturing, or aerospace, physical assets are often expensive, highly specialized — and perhaps even custom-built. If something happens to them, the cost to replace or repair can be enormous. That’s why property coverage is mission-critical.

Not all traditional insurers provide sufficient cover for the assets used in innovative sectors. Working with a provider with specialized policies is key.

Commercial property coverage is designed for losses caused by sudden events. Wear and tear, or damage resulting from poor maintenance practices, mold or contamination, is not covered. Environmental insurance can protect against the latter risks.

Damage caused by Acts of God are usually excluded. Companies in areas at risk need separate policies to cover damage by flooding, earthquakes and so on. Other exclusions are damage caused by war or terrorism, and intentional damage by employees.

Despite the name, inland marine insurance covers goods in transit over land, tools and machinery at job sites, and bailee’s goods. It covers goods in-transit over land. (Ocean marine coverage protects goods transported by sea.) Inland marine policies also cover tools and machinery in-use at job sites, and bailee’s goods in your client’s custody. Traditional commercial property insurance often excludes the risks affecting assets on-the-move, making this coverage a crucial add-on.

Common inland marine examples:

• Instrument and equipment floaters for delicate or high-value tools and test equipment.
• Motor truck cargo coverage for goods carried by haulers or your own fleet.
• Installation floaters for components being installed at customer sites.
• Bailee’s customer goods for items held in your custody, for repair or servicing.
• Exhibition floaters for trade show shipments and temporary displays.

If a business moves materials between sites, ships products, or works remotely on client property, inland marine insurance is vital. It’s especially relevant for:

• Tech or medical companies transporting delicate and high-value equipment.
• Manufacturers with expensive prototypes in transit.
• Construction firms with equipment on the move.

When an event damages a company’s premises or equipment, fixing things is only the first step to recovery. In some cases, the bigger cost is lost revenue while operations are down. Business Interruption Insurance can cover:

• Lost profit during the period in which a business can’t operate.
• Ongoing expenses like rent, payroll, taxes and loan repayments.
• Extra expenses resulting from the event, like additional accountants’ fees, temporary relocation costs, and rental costs for temporary office space and equipment.
• Training costs if staff need to learn to use replacement machinery.
• Losses caused by civil authority ingress/egress such as curfews or street closures.

Common exclusions are disruptions caused by war and nuclear risks, pandemics and communicable diseases, cyberattacks and deliberate acts. Policies don’t usually cover the cost of utilities or undocumented income that’s not listed in financial records.