Inland Marine Insurance
for Small Businesses

What Is Inland Marine Insurance?

Inland marine insurance, also known as contractor’s tools & equipment coverage, is coverage for property that moves — your equipment, your tools, your goods in transit.

However, the name throws people off. It sounds like something you’d buy for a boat. It’s not.

The coverage started in the shipping industry, back when valuable goods moved by sea. As more business shifted to land, insurers stretched the coverage to follow. The name stuck around even after the boats dropped out of the picture. 

You’ll also sometimes hear inland marine coverage called a “floater.” The coverage “floats” with your property instead of staying tied to one location. Terms like “tool floater,” “equipment floater,” or “installation floater” usually refer to specialized inland marine forms or endorsements built for specific situations, although some carriers offer them as standalone policies.

If your work depends on gear that leaves your shop or office, this is coverage worth knowing about.

What Does Inland Marine Insurance Cover?

Workers’ compensation is designed to support employees through recovery while helping you manage the financial impact of workplace injuries. Coverage can vary by state and policy, but most plans include a few key protections.

Here’s what you can typically expect your policy to include:

Tools and equipment

This is the main thing. Whether you’re a contractor relying on the power tools in your truck, a photographer taking cameras on a shoot, or a mobile groomer transporting your gear — inland marine provides broad protection for your essential equipment, giving you the confidence to take your work anywhere.

Standard commercial property insurance usually stops at your front door. Inland marine picks up where it leaves off.

Goods in transit

If you ship products you own to customers, inland marine can cover those products while they’re on the way. So if a delivery is lost or damaged before it gets there, you’re not stuck with the bill.

Property in your care

Some businesses hold onto things that belong to other people — a tailor with a client’s wedding dress, a repair shop with someone’s laptop, a jeweler resizing a ring. If something happens to that item while it’s with you, inland marine can help cover the loss. If that’s your setup, the policy needs to be sized to match. Start a quote and we can help you find the right fit. 

Installation floaters

If you’re a contractor, this one matters. An installation floater is a type of inland marine coverage that protects materials — pipes, flooring, fixtures, whatever you’re putting in — from the time they leave the supplier until they’re permanently installed. Materials sitting on a job site aren’t built in yet, which makes them more prone to damage or theft. The floater is designed to fill that window.

There is also related coverage called builders risk insurance. An installation floater and business risk insurance are often confused for each other, but they cover different things. Builders risk covers the entire building or structure under construction, and it’s usually carried by the property owner or general contractor. An installation floater covers the specific materials a subcontractor is installing. If you’re a plumber, electrician, or HVAC contractor, an installation floater is probably what you’re looking for.

What Isn’t Covered

A few things to know:

Inland marine doesn’t cover normal wear and tear. That’s just the cost of using your equipment over time.

It also doesn’t cover your truck or van. Vehicles need a commercial auto policy. Inland marine covers what’s in the vehicle, not the vehicle itself.

Who Needs Inland Marine Insurance?

If your tools earn you a living and they leave your premises, the answer is probably yes, you need inland marine insurance.

There’s also a practical reason a lot of business owners get this coverage even when they’re not sure they need it: bigger jobs often require it. General contractors and commercial clients frequently ask for proof of insurance before they’ll bring you onto a project. Having a certificate of insurance (COI) ready can be the difference between getting the contract and watching it go to someone else.

Inland Marine vs. Commercial Property Insurance

These two get confused a lot, so here’s the short version.

If your tools get stolen out of your truck overnight, commercial property won’t help. Inland marine generally will. Most businesses with mobile equipment end up needing both.

How Much Does Inland Marine Insurance Cost?

The average price for inland marine coverage is $32/mo., according to Simply Business customers that purchased this type of coverage between July 1, 2025 and December 31, 2025.

Coverage cost depends on what you’re insuring — the type of equipment, what it’s worth, how it’s used, among other factors. Most mobile equipment policies come in at a price that’s surprisingly manageable, especially when bundled with other coverages.