for Restaurants, Bars, Cafes, and Other Food Services Businesses

If your restaurant business regularly transports goods and equipment from one place to another, Inland Marine Insurance might be an excellent addition to your small business insurance plan.

Without Inland Marine Insurance, folks who own food truck, catering, or food delivery businesses may have a gap in their insurance coverage. That's because neither Property Insurance nor Commercial Auto Insurance can protect your property as it travels.

Inland Marine Insurance, however, was designed to do just that. Read on to learn more about this specialized coverage.

Restaurant Owners: What Is Inland Marine Insurance?

Restaurant Owners: What Is Inland Marine Insurance?

Inland Marine Insurance is a special type of Property Insurance that can protect unique classes of business property – the kind that isn't covered by standard policies. There are many different types of Inland Marine Insurance. Depending on your industry's needs, an insurer might sell this coverage under different names such as "Bailee Customer's Goods Insurance" or "Fine Arts Insurance."

The name Inland Marine Insurance is somewhat misleading, as the modernized version of the policy often has little to do with the ocean.

The coverage was first developed when the transportation of goods was mostly done via waterways. Since traditional Property Insurance didn't protect cargo as it voyaged over the sea, insurers developed a new policy called Ocean Marine Insurance.

But as technology advanced and business owners started owning new types of property (like telegraphs) and transporting goods over land, insurers developed Inland Marine Insurance to help mitigate these new exposures.

Today, Inland Marine Insurance can protect several different classes of property, including:

  • Property in transit. This might include all of the kitchen equipment you transport from your catering facility to a job site.
  • Property in your temporary care. Many coffee shops exhibit artwork on a rotating basis. This is an example of a time when you might temporarily care for someone else's property.
  • Property that stays in a fixed (but movable) location. An example of this might be all of the property you keep in your food truck.
  • Property that moves around. As a food vendor, you may take your property from one location to the next.
  • Property that aids in the transfer of information. For those in the restaurant industry, this may include accounts receivable, computer equipment, and data.
  • Unique or valuable property. For example, if your cafe is decorated with sculptures and other artwork that can't be insured with standard policies.

Restaurant owners can usually buy Inland Marine Insurance as a standalone policy or as part of an insurance bundle.

How Does Inland Marine Insurance Protect Restaurants?

How Does Inland Marine Insurance Protect Restaurants?

Inland Marine Insurance protects restaurant owners by helping them replace or repair certain kinds of property after a loss. Inland Marine Insurance policies tend to be broader than other Property Insurance policies, in terms of the damaging events (aka "perils") it can cover. An Inland Marine Insurance policy can be written as…

  • An all-risk policy. The language in these policies states that all types of perils are covered unless otherwise stated. Usually, these policies come with a list of exclusions, or events that are not covered.
  • A named-peril policy. Some Inland Marine policies include a list of specific perils that they cover. Everything not listed is not covered by the policy.

It's important for owners of restaurants, taverns, bars, and catering businesses to understand which type of Inland Marine Insurance policy they are purchasing in order to fully understand their protection and exposures. Most Inland Marine Insurance policies protect from perils such as…

  • Fire.
  • Theft.
  • Wind damage.
  • Lightning strike.
  • Collisions.
  • Earthquakes

Always talk to an insurance agent about the types of perils your Inland Marine policy covers. They can vary greatly from policy to policy.

Restaurant Owners: Add Inland Marine Insurance to Your Business Protection Plan

Restaurant Owners: Add Inland Marine Insurance to Your Business Protection Plan

When you're ready to learn more about how Inland Marine Insurance can benefit your restaurant business, give an insureon agent a call to secure your free insurance quotes. Our agents specialize in helping those in the restaurant industry find the coverage they need. You can also complete our online application to get your free insurance quotes electronically.

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