What Is The Difference Between Commercial Property Insurance & Inland Marine Insurance?

What Is The Difference Between Commercial Property Insurance & Inland Marine Insurance?

If you’re a business owner, you’ve probably heard of commercial property insurance, but what about inland marine insurance? Despite the confusing name, inland marine coverage has nothing to do with boats—and understanding the difference between these two insurance types is essential for protecting your business assets.

In this article, we’ll break down the differences between commercial property and inland marine insurance, when you might need each one, and real-world examples of how they work.

What Is Commercial Property Insurance?

Commercial property insurance protects the physical location of your business and the contents inside. That includes things like:

• Your building (if you own it)
• Furniture and fixtures
• Computers and office equipment
• On-site inventory

This type of insurance is essential for businesses that rely heavily on their physical space, such as:

• Retail stores
• Hotels and restaurants
• Manufacturing facilities

Commercial property insurance covers damage or loss caused by common risks like:

• Fire
• Theft
• Vandalism
• Certain weather events (depending on your policy)

So, if a fire damages your building or a thief steals valuable inventory, commercial property insurance helps you recover and rebuild.

What Is Inland Marine Insurance?

Despite its nautical-sounding name, inland marine insurance covers property that is mobile or off-site. This includes:

• Equipment transported between job sites
• Tools used at various locations
• Products being shipped to customers
• Specialized or high-value mobile assets

It’s particularly important for businesses that don’t operate solely from one fixed location, such as:

• Construction companies
• Contractors and subcontractors
• Delivery services
• Event companies

Inland marine insurance protects your tools, equipment, or products while they’re in transit or temporarily off-premises—places where a commercial property policy won’t cover you.

Real-World Examples

To understand the difference more clearly, here are two examples:

• Retail Store Example (Commercial Property Insurance):
  A retail clothing store with a physical storefront relies on commercial property insurance to protect their inventory, point-of-sale systems, furniture, and fixtures inside the shop. If a fire breaks out in the building, commercial property insurance helps cover the damages.
• Construction Company Example (Inland Marine Insurance):
  A construction company that transports tools, equipment, and materials to various job sites would benefit from inland marine insurance. If a tool trailer is stolen while on the road or equipment is damaged at a temporary job site, inland marine insurance covers the loss.

Do You Need Both?

In many cases, yes. If your business owns or leases a physical location and regularly transports equipment or property, having both policies can be the best way to protect yourself from gaps in coverage.

For example, a contractor with an office or warehouse needs commercial property insurance to protect the building and what's inside. But they also need inland marine insurance to protect the tools and equipment that leave the premises daily.

Final Thoughts

Understanding the difference between commercial property insurance and inland marine insurance can help you make smarter decisions about protecting your business assets.

• Commercial property insurance protects your building and everything inside it.
• Inland marine insurance protects business property that is mobile, in transit, or used off-site.

If you're unsure which type of coverage you need—or if you may need both—it’s a good idea to speak with a knowledgeable insurance advisor.

📞 Need help reviewing your commercial property or inland marine insurance coverage? We’re here to help.