Inland Marine Coverage for Inns and Bed and Breakfasts

Have you walked around your inn and identified all the valuables you have collected, inherited or purchased over the years? You may be surprised if you take the time to do so, as most owners don’t realize the number of valuable items they possess. This is particularly important because typical insurance policies do not cover many valuables and have limits on the dollar amount and type of loss that can be recovered. Inland marine insurance can help fill the gaps within your policy.

What is Inland Marine Insurance?

Inland marine insurance was previously used by those in the marine industry to protect against property losses before, during and after water transfers. As decades passed, cargoes started to be transferred on land, and thus, the term “inland marine” was coined.

Now inland marine coverage fills the gaps in commercial property protection or helps reach specific limits of coverage. For those that own fine arts and other valuables, such as inn or bed and breakfast owners, inland marine insurance provides coverage for items typically excluded from a commercial property policy, such as the following:

• Antiques, paintings, statues and fine art collections
• Valuable papers
• Electronic data processing
• Tools and equipment
• Saddles and tack
• Small boats, ATVs, golf carts, bicycles and snowmobiles

Inland marine is typically an “all-risk” policy, meaning items are covered from every type of damage except those listed in the policy language. Coverage for these types of items can be limited, so it’s wisest to check with your agent to determine what your policy offers. You may need to schedule these items separately on your policy to receive full coverage.

Breaking Down the Most Popular Types of Inland Marine Coverages

Tools and Equipment

A great way to safeguard your valuable assets during the building process is builders risk insurance. This is another type of inland marine insurance. This policy protects project owners, general contractors and subcontractors against direct physical loss or damage to covered property. To ensure sufficient protection, a builders risk policy should be customized based on the characteristics of the construction project at hand and the unique needs of the parties involved.

Electronic Data Processing

Electronic Data Processing (EDP) insurance protects a range of equipment innkeepers use daily, including hardware such as computers, data, software, external hard drives, USBs and network servers, as well as smartphones and tablets.

This specialized type of inland marine insurance typically encompasses coverage for risks that computers and computer programs are exposed to, such as mechanical breakdowns, data loss, power surges, fires and other related perils.

Fine Arts

Your inn might be filled with not only aesthetically pleasing décor but also pieces that are valuable for a myriad of reasons. Fine art insurance is another type of inland marine insurance that covers losses for sculptures, prints, historical collections and paintings that you have on display. It protects these valuables from theft and damage — crucial for high foot-trafficked areas and the number of guests staying at your property.

Valuable Papers

The most important documents that your business retains can disappear, be misplaced and be permanently destroyed. That’s where valuable papers and records insurance come into play. This type of inland marine coverage protects you from the risk of a direct, physical loss of a key document.  

Valuable papers include:

• Blueprints
• Contracts
• Property deeds

Minimize Your Risks

While inland marine coverage will help protect against vandalism, there are several precautions you can take to reduce the chance of stolen items. Most thefts occur when valuables are left out in plain view or when guests are present in your inn. Also, thieves may survey the inn looking for signs that people are away, such as uncut grass, newspapers left on the stoop or a dark property night after night. Keep these tips in mind:

• Keep doors and windows locked to your inn and car while you are away, even mowing the grass.
• If you give your guests codes to get into the building, change the codes to the locks after each guest. If you must give a key to a maintenance worker or guest, give them a key to a non-ornamental lock, such as a back door. Have the physical door lock changed periodically.
• If your inn takes a break and closes for a week or two, ensure it looks like nobody has gone away. Ask an employee, friend or neighbor to collect the mail and newspaper or place a hold on these items at the post office. Also, find someone to mow your grass or shovel your snow. Place lights on a timer in the evening to give the illusion that someone is at the inn as well.

Your Valuables are Safe With CBIZ Innkeepers Insurance

Inn owners with high-value possessions must purchase additional coverage to protect their valuable items in case of a catastrophic event. For additional information about inland marine insurance and how it can protect items that seem to fall between the lines of your current coverage, connect with a member of our team.

This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

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