What’s the Difference Between Inland Marine and Property Insurance?

Inland marine insurance sounds like something for boats — but it’s actually one of the most important coverages for contractors, landscapers, and anyone who moves equipment from site to site.

A lot of business owners assume their property insurance covers everything. It usually doesn’t. If your tools are in a trailer, your equipment is between job sites, or your materials are stored off-site, standard property insurance often leaves you exposed.

That’s where inland marine insurance comes in.

In this post, we’ll walk through:

• What inland marine insurance really covers

• How it compares to property insurance

• Where the gaps are

• And how to decide what your business actually needs

If your equipment moves, this is worth knowing.

What Inland Marine Insurance Actually Covers

Inland marine insurance is one of those policies that’s often misunderstood — mostly because of the name. It has nothing to do with water. What it actually does is protect movable equipment, tools, and materials when they’re away from your main business location.

If your business depends on transporting gear, setting up at temporary job sites, or storing tools in off-site trailers or storage units, inland marine insurance fills the gap that property insurance leaves behind.

Here’s what inland marine insurance typically covers:

1. Equipment in Transit

If you're hauling tools or machinery between job sites and they get damaged or stolen along the way, inland marine insurance can step in. Property insurance wouldn’t touch this — it only protects items at a fixed location.

2. Job Site Equipment

Let’s say you leave a piece of equipment at a site overnight and it gets vandalized. Inland marine insurance covers equipment stored temporarily at places other than your main address.

3. Tools Stored Off-Site

If you store equipment in a warehouse, trailer, or mobile unit that isn’t at your business address, it’s not covered by standard property insurance. Inland marine fills that gap.

4. Borrowed or Rented Equipment

Many inland marine policies can be extended to protect borrowed or rented tools — a common situation in construction and landscaping work.

The real value of inland marine insurance is flexibility. It follows your equipment, rather than tying coverage to one location. That makes it ideal for contractors, landscapers, and other field-based businesses that rely on moving gear day to day.

What Property Insurance Is Designed to Cover

If inland marine insurance follows your equipment wherever it goes, property insurance does the opposite — it stays put. It’s designed to protect buildings, fixed assets, and anything located at your primary business address.

That’s great if your tools, gear, and materials stay on-site. But if you take your business on the road — which most contractors and landscapers do — relying on property insurance alone can leave big gaps.

Here’s what property insurance usually covers:

1. Physical Structures

This includes your office building, warehouse, or shop. If there's damage from fire, theft, or weather, property insurance helps pay for repairs or rebuilding.

2. Business Contents at a Fixed Location

That means desks, computers, shelving, inventory, and even tools — but only if they’re located at the address listed on your policy. Once those items leave the property, coverage usually doesn’t go with them.

3. On-Premises Equipment

If your equipment stays at your primary site and is used or stored there, property insurance can help cover it. But once it’s in transit or at another job site, it's not covered under this policy.

4. Named Perils at the Covered Location

Property insurance only protects against specific risks listed in the policy (like fire or theft), and only at the insured location. That doesn’t include loss while in motion or stored remotely.

This is where inland marine insurance becomes essential. It fills in the blanks that property insurance leaves behind — especially for mobile businesses.

Where Coverage Gaps Happen (and Why It Matters)

Here’s where things get messy: a lot of contractors think their tools are covered under property insurance—until something goes wrong. That’s when they find out there’s a gap big enough to lose a job over.

Inland marine insurance and property insurance serve very different purposes. If you’re not clear on those differences, you could be operating with serious blind spots.

1. Theft at a Job Site

Let’s say you leave a compactor or power saw locked up overnight at a site, and it gets stolen. Property insurance won’t cover it—it’s not at your listed location. Inland marine insurance is designed exactly for that kind of risk.

2. Damage in Transit

A piece of gear falls off a trailer or gets damaged while being moved from one site to another. That’s not something property insurance handles. Inland marine insurance covers equipment in motion, which is where most property policies stop short.

3. Tools Stored in a Trailer or Off-Site Unit

If you keep tools in a storage container or truck that’s not parked at your business address, you’re likely uncovered under property insurance. Inland marine insurance fills this gap, offering coverage no matter where your equipment is stored.

4. Rented or Borrowed Equipment Issues

Need to use a rented trencher for a few days? If it’s damaged while in your care, it might not be covered by either policy unless you’ve extended inland marine insurance to include rentals. This is a common blind spot that can get expensive fast.

Coverage gaps are exactly why inland marine insurance exists. If your business runs on gear that moves, stores remotely, or lives in trucks and trailers, relying only on property insurance is a costly bet.

How to Decide Which One (or Both) You Need

If you’ve made it this far, you probably already know the answer: most contractors and field-based businesses need both inland marine insurance and property insurance. But how much of each — and when — depends on how you actually work.

Let’s break it down.

1. If Most of Your Equipment Stays on Site

You operate out of a shop or fixed location, and your gear rarely leaves the premises. In this case, property insurance might be enough — as long as you’re not moving materials or tools regularly.

2. If Your Gear Moves Often

If you haul trailers, use off-site storage, or leave tools at job sites, inland marine insurance becomes a must. Property insurance doesn’t follow your gear, but inland marine does.

3. If You Rent or Borrow Equipment Frequently

If you’re bringing in rental machinery or borrowing equipment from partners or vendors, look into extending inland marine insurance to cover those items. Otherwise, you could be liable for damage out of your own pocket.

4. If You’re Growing or Taking on Bigger Jobs

Business growth usually means more equipment, more travel, and more exposure. It’s worth reviewing both policies regularly to keep up with how your operations change. What worked a year ago might not be enough now.

Think of property insurance as your coverage at home base. Inland marine insurance picks up the moment your tools and equipment hit the road.

Conclusion: Match Your Coverage to How You Work

Property insurance protects your base. Inland marine insurance protects everything that moves with you. If your tools, equipment, or materials ever leave your main location, you need more than just a standard policy.

For contractors who work across job sites, haul gear daily, or store equipment off-site, this coverage isn’t optional — it’s essential.

If you're in landscaping, hardscaping, or site prep, check out Landscaping Contractor Insurance. It’s built for the way your tools move, your jobs run, and your risks play out in the real world.