Inland Marine insurance covers movable business property and property in transit — the tools, equipment, materials, and goods that standard Commercial Property excludes because they leave your premises. A typical $50,000 blanket Tools & Equipment Floater runs about $48/month ($576/year); smaller $10K limits are ~$25/month and $250K limits ~$220/month. Despite the name, it has nothing to do with boats — the term is historical (it grew out of ocean marine cargo coverage extended "inland"). Contractors, truckers, jewelers, and medical-equipment businesses are the core buyers. See what a Tools & Equipment policy costs.
The dividing line is simple: Commercial Property covers what stays at the insured address; Inland Marine covers what moves or lives elsewhere. Standard property forms exclude tools and equipment away from the premises — so a contractor whose $40,000 of tools is stolen from a job-site trailer has no property claim. Inland Marine (a "floater") is the policy that follows the property wherever it goes. Sources: Insurance Information Institute (III) commercial-insurance basics; International Risk Management Institute (IRMI) inland-marine references; Get Business Coverage quote-request benchmarks (2026). Premium figures are typical-case and vary with limit, deductible, and equipment type.
Equipment Floater
+ off-premises
ocean marine cargo
movable equipment
What Inland Marine covers
Inland Marine is a family of "floaters," each tailored to a type of movable property. The most common commercial forms:
- Contractors' Tools & Equipment Floater — hand tools, power tools, and portable equipment on job sites, in vehicles, or in transit.
- Contractors' Equipment — larger owned/rented/leased machinery (excavators, generators, scaffolding) away from a fixed location.
- Installation Floater — materials and fixtures a contractor is installing at a project site until the work is accepted.
- Motor Truck Cargo — goods a trucker hauls for others (see Motor Truck Cargo).
- Bailee's coverage — customers' property in your care (a dry cleaner's garments, a repair shop's equipment).
- Specialty floaters — jewelers block, fine arts, computers/electronic equipment, medical/diagnostic equipment, camera/media gear.
Who needs Inland Marine
- Contractors & trades — tools and equipment on job sites; the #1 Inland Marine buyer.
- Truckers & couriers — cargo they haul for others (Motor Truck Cargo).
- Businesses holding customer property — repair shops, dry cleaners, warehouses (bailee exposure).
- Jewelers, art dealers, photographers — high-value, portable, specialty inventory.
- Medical & tech services — portable diagnostic, computing, or field equipment.
Quotes from 10+ carriers · Licensed agent followup
5 quick questions · No phone calls · No SSN required
How much does Inland Marine cost?
A blanket Tools & Equipment Floater scales roughly with the coverage limit. Typical figures:
- $10K limit: ~$25/month.
- $50K limit: ~$48/month ($576/year) — the common small-contractor policy.
- $100K limit: ~$95/month.
- $250K limit: ~$220/month.
Drivers: total insured value, per-item vs blanket limits, deductible, equipment age/type, and whether coverage is Replacement Cost or Actual Cash Value (ACV runs 5-15% cheaper but pays depreciated value). See the full Tools & Equipment cost breakdown or compare quotes.
Inland Marine vs Commercial Property
- Commercial Property covers what's at the insured location — the building and contents at the listed address.
- Inland Marine covers what's moving or located elsewhere — tools in transit, equipment on job sites, customer property in your care.
- Many small businesses need both: property for the shop, Inland Marine for what leaves it. A BOP often bundles a small Inland Marine limit; higher exposures need a dedicated floater.
What's NOT covered (key exclusions)
- Wear, tear, and mechanical breakdown — Inland Marine covers sudden accidental loss, not maintenance or failure (that's Equipment Breakdown).
- Vehicles licensed for road use — those are Commercial Auto; Inland Marine covers the equipment, not the truck.
- Property permanently at the premises — that's Commercial Property.
- Employee theft / dishonesty — that's Crime/Fidelity, not Inland Marine.
- Unexplained disappearance / inventory shortage — commonly excluded or sublimited.
Frequently Asked Questions
Does Inland Marine have anything to do with boats?
No. The name is historical — inland marine grew out of ocean marine cargo coverage, which insurers extended to goods traveling over land ("inland"). Today it covers movable and off-premises business property: tools, equipment, cargo, and specialty items. Boats are covered by separate watercraft/marine policies.
Why won't my Commercial Property policy cover my tools?
Standard Commercial Property covers property at the insured location and excludes property away from the premises. Tools on a job site, in your truck, or in transit fall outside that — which is exactly the gap Inland Marine fills. If your equipment moves, you need a floater.
How much Inland Marine coverage do I need?
Inventory your movable equipment at replacement cost and insure to that total. A blanket limit covers everything up to the limit; schedule high-value individual items separately if they exceed the per-item cap. Under-insuring risks a coinsurance-style shortfall at claim time.
Is Inland Marine included in a BOP?
Many Business Owner's Policies include a small Inland Marine sublimit (often $5K-$25K), which is fine for a business with modest portable property. Contractors and others with significant tools/equipment exposure need a dedicated Tools & Equipment Floater with an adequate limit.
Does Inland Marine cover rented or leased equipment?
Yes — contractors' equipment floaters can cover owned, rented, and leased equipment, and rental agreements often contractually require you to insure the equipment you rent. Confirm the form lists rented/leased property and matches the limit your rental contract demands.
Is Inland Marine the same as a Tools & Equipment policy?
A Tools & Equipment Floater is the most common type of Inland Marine for contractors — but Inland Marine is a broader family that also includes installation floaters, contractors' equipment, motor truck cargo, bailee coverage, and specialty floaters (jewelers, fine arts, electronics). If a broker quotes you "Tools & Equipment," that's an Inland Marine floater.
Quick glossary — Inland Marine terms
- Floater
- A policy or endorsement that "floats" with movable property, covering it wherever it goes rather than at a fixed address.
- Tools & Equipment Floater
- The canonical contractor Inland Marine form — covers hand/power tools and portable equipment on job sites and in transit.
- Blanket limit
- A single limit covering all scheduled property, versus per-item limits for high-value pieces.
- Bailee coverage
- Covers customers' property left in your care, custody, or control (a repair shop, cleaner, or warehouse).
- Installation floater
- Covers materials/fixtures a contractor is installing until the project is complete and accepted.
- Actual Cash Value (ACV)
- Replacement cost minus depreciation — a cheaper valuation that pays less at claim time.
