Explain Inland Marine vs BPP vs Installation floater

Inland Marine, Business Personal Property (BPP), and Installation Floater policies each provide coverage for property, but they differ in terms of what they cover and where the property is located. Here’s a breakdown of each type of coverage and when it’s most applicable:

Inland Marine Insurance

Inland Marine Insurance is designed to protect property in transit or property at various locations (not just a fixed, insured location). Originally created to cover goods transported over land, inland marine policies now cover a wide range of movable or specialized property. It’s commonly used for contractors, businesses with mobile equipment, or those that need coverage for property that frequently moves or resides off-premises.

• Coverage: Inland marine typically covers tools, equipment, and other property that moves from location to location or is frequently offsite.

• Ideal For: Contractors, artisans, photographers, and businesses transporting equipment or goods regularly.

• Examples: A contractor’s tools and equipment moved between job sites, a photographer’s camera gear during a shoot, or artwork displayed at an offsite gallery.

• Key Advantage: Provides protection beyond the fixed location covered by standard property policies.

Business Personal Property (BPP) Insurance

Business Personal Property (BPP) insurance is typically included in a commercial property or business owner’s policy (BOP). BPP provides coverage for personal property owned by the business at the business’s primary location. This includes items like office furniture, computers, machinery, and stock.

• Coverage: Covers business-owned property located on the insured premises (or within a limited area around it, usually up to a certain number of feet from the building).

• Ideal For: Any business with a physical location where most business property remains, such as offices, retail stores, and manufacturing plants.

• Examples: Desks, computers, inventory stored at a retail location, or equipment in an office or warehouse.

• Key Limitation: Limited to the primary location; does not cover property that leaves the insured premises or travels to different locations.

Installation Floater

An Installation Floater policy is a specialized type of inland marine insurance that covers materials, supplies, and equipment specifically related to an installation project. It provides coverage from the time materials leave the contractor’s (or supplier’s) premises, during transit, while being stored on-site, and until the project is completed and accepted by the client.

• Coverage: Covers property involved in installation work from the time it leaves the supplier’s or contractor’s premises until the installation is complete and accepted by the client.

• Ideal For: Contractors, subcontractors, and other trades involved in installing equipment, fixtures, or other property as part of a construction or renovation project.

• Examples: HVAC systems, plumbing fixtures, electrical wiring, or cabinetry being installed at a job site.

• Key Advantage: Protects against loss or damage to materials in transit, while stored on-site, and during the installation process.

Summary of Differences

FeatureInland MarineBusiness Personal Property (BPP)Installation FloaterPrimary CoverageProperty in transit or at various locationsBusiness-owned property at a fixed locationProperty related to an installation projectCoverage LocationAny location, often includes transitLimited to insured premisesTransit, job site, until installation is acceptedIdeal ForContractors, mobile businessesBusinesses with fixed locationsContractors and trades doing installationsExamplesTools moving between job sitesDesks, computers at an officeHVAC units, fixtures for installation

Key Considerations

• Mobility Needs: Inland Marine is most flexible for property that frequently moves, whereas BPP is best for stationary items at a fixed location. Installation Floater is project-specific and covers only installation-related items.

• Project-Specific Coverage: If your business regularly installs items or materials on job sites, an Installation Floater is likely essential.

• Combination of Coverages: Many contractors and construction businesses may need a combination of BPP for their base location, inland marine for tools that travel, and an installation floater for project-specific materials.

Each type of coverage has its specific strengths and limitations, so understanding what each policy is designed to cover helps in selecting the right combination to protect your business property comprehensively.