Inland Marine Insurance Basics for Contractors in Michigan (Equipment Coverage Explained)

Inland Marine Insurance Basics for Contractors in Michigan (Equipment Coverage Explained)

If you’re a contractor in Michigan, your tools, equipment, and materials are the lifeblood of your business. But here’s the challenge: standard property insurance typically only covers items at your primary business location. What happens when you transport equipment to a job site or leave tools stored overnight? That’s where Inland Marine Insurance comes in.

What Is Inland Marine Insurance?

Despite the confusing name, Inland Marine Insurance has nothing to do with boats. Instead, it’s designed to protect equipment, tools, and materials that are:

• On the move between job sites
• Temporarily stored at a job site
• At risk of theft, damage, or loss outside your primary location

For Michigan contractors, this coverage is essential to keep projects moving without unexpected financial setbacks.

Why Contractors Need It

Your tools and equipment aren’t always locked up in one place. Whether you’re transporting power tools, leaving materials on-site, or renting specialized machinery, Inland Marine coverage fills the gaps left by standard property insurance. Without it, you could be left footing the bill if valuable items are stolen, damaged, or destroyed off-site.

Key Inland Marine Coverage Features for Contractors

• Blanketed Equipment Coverage for Small Tools
  Protects smaller tools without requiring each one to be listed individually.
• Scheduled Coverage for High-Value Items
  Specialized or expensive equipment can be scheduled on your policy for full agreed-value coverage.
• Installation Floater for Materials
  Covers building materials while they’re in transit or stored at the job site until they’re installed.
• Leased or Rented Equipment Coverage
  If you rent machinery for a specific project, this coverage protects you if something happens while it’s in your possession.
• Coverage Limits and Deductibles
  Policies vary, so it’s critical to select limits that match the value of your equipment and set a deductible that balances affordability with risk.

Real-World Example

Imagine leaving $20,000 worth of tools and materials at a Michigan job site overnight. If a theft occurs, your standard property policy won’t cover it because the loss didn’t happen at your main business address. Inland Marine Insurance steps in to protect those items — ensuring your project stays on track and your business avoids a major financial hit.

Final Thoughts

For contractors in Michigan, Inland Marine Insurance is more than just an optional add-on — it’s a vital safeguard. Whether it’s protecting small tools, big-ticket machinery, or building materials, this coverage helps ensure your business doesn’t skip a beat when the unexpected happens.

📞 Need help reviewing your Inland Marine coverage? Contact us today to make sure your tools, equipment, and materials are fully protected.