Inland Marine

The following are some standard definitions that help you measure the range of losses possible in the event of damage to your business.

Inland Marine

Accounts Receivable Coverage
Coverage that protects businesses against their inability to collect their accounts receivable because of the loss of supporting records that have been destroyed by a covered cause of loss. Also covered are the extra collection expenses that are incurred because of such loss or damage and other reasonable expenses incurred to re-establish records of accounts receivable after loss or damage.

Builders Risk Coverage
Insures a building or structure during construction, renovation or repair. The insured may be the building owner, a builder/ contractor, or the purchaser of the building. A policy may cover either a single construction project or multiple job sites. In general, non-reporting builder’s risk coverage is written for the full, completed value of the project, but loss payment is based on the amount of construction actually completed at the time of loss. The premium charged is based on the full, completed value but is discounted using a mathematical formula. This is because the value at the start of construction is zero, and the completed value is not reached until construction is finished and the building is released for occupancy.

Contractor’s Equipment Coverage
This is an inland marine form of coverage that insures the equipment, tools and materials of a contractor. Contractor’s equipment is defined as equipment used by contractors in their business operations. Examples may be anything from concrete forms, asphalt plants, bulldozers, cherrypickers, and scaffolding to small hand tools. This equipment is most often protected by inland marine insurance coverage due to its mobile nature.

Electronic Data-processing Equipment Coverage
A policy providing protection on equipment, software and extra expenses incurred as a result of failure of such equipment caused by an insured loss and loss of earnings. Also know as an EDP policy. Coverage may be extended to include liability claims alleging errors and omissions by data-processing companies.

Installation Coverage
Provided by an installation floater that covers personal property installed, fabricated or erected by an insured, usually a contractor. Coverage is for special causes of loss and applies to owned property and the property of others. It also covers the insurable interest of that contractor in the property. It can cover a single project within an existing building, such as updating the plumbing system. It can also cover a contractor acting as a subcontractor on a building in the course of construction, such as the one that installs the sprinkler system. The policy can be written on a reporting form basis or on a scheduled job or project basis. It provides coverage until the installation work is accepted by the purchaser or when the insured’s interest in the property installed ceases.

Scheduled Property Coverage
Insures property of the insured and property of others with no limitation as to place. It is a floater form and coverage is on an all-risk basis. The property covered must be specifically identified and described, and a limit of insurance assigned to it. Coverage applies on premises, off premises and in transit. Scientific instruments, voting machines and religious organization paraphernalia are some examples of property that might be covered on this form. Items scheduled and insured on this form should be removed from the property coverage in order to eliminate duplicate coverage and premium charges.

Transportation Coverage
Insurance on merchandise and/or cargo while it is being moved and is subject to loss or damage during transportation. This insurance may also protect while in a warehouse. Coverage is available for property serving as either an instrument of transportation or of communication, such as bridges, tunnels and television transmission towers. Writing this type of protection is usually within the province of marine or inland marine underwriters. viii. Valuable Papers and Records Coverage Provides coverage for replacement of a commercial operation’s valuable papers, records and forms, including electronic media. Typically, coverage is limited to the cost of re-creating or restoring the lost or damaged documentation.

how can we help you?

Let Lyman & Sheets help you navigate the insurance landscape.

When I arrived 15 minutes after receiving a call about a fire at our business, I was amazed to see Dave Drayton already on the scene and in contact with our carrier. He and his team saw us through the entire claim and rebuild process, and we received a very fair settlement. This is a good example of why we use Lyman & Sheets for our insurance needs.

Joseph P. Maguire
, Wolverine Development Corporation