Inland Marine Insurance 

Inland marine insurance is a specialized form of coverage designed to protect goods, equipment, and property while in transit over land, as well as certain types of movable property. Unlike traditional marine insurance that covers ocean freight, inland marine insurance addresses the growing complexities of domestic transportation and logistics. With the rapid expansion of e-commerce and evolving supply chain dynamics, understanding inland marine insurance has become crucial for businesses and individuals alike.

In recent years, the U.S. inland marine insurance market has experienced notable growth, rebounding from pandemic-related challenges. According to AM Best, premiums in this sector grew by 15% in 2021 following a slight decline the year before. This resurgence highlights the increasing importance of inland marine insurance in a world where goods move faster and supply chains become more intricate.

Inland marine insurance originally evolved from traditional marine insurance to cover cargo transported over land. Today, it encompasses a broad range of property and equipment that is mobile or in transit. This includes construction equipment, fine arts, electronics, and even goods stored temporarily at different locations. The evolution of this insurance type reflects the changing dynamics of commerce and transportation, as businesses increasingly rely on the movement of goods across various terrains to meet customer demands.

Unlike standard property insurance, which typically covers fixed locations, inland marine insurance is tailored to protect property that is often on the move or stored at multiple sites. This makes it essential for industries such as logistics, construction, and retail, where assets frequently change location. For instance, a construction company may transport heavy machinery from one job site to another, and without inland marine insurance, any damage or loss during transit could lead to significant financial setbacks. Furthermore, as e-commerce continues to grow, the need for such insurance has become even more pronounced, ensuring that businesses can safeguard their assets while they are in transit to customers or between warehouses.

Key Coverage Areas



Inland marine insurance policies can cover:

• Goods in transit over land, including trucks and railroads
• Mobile equipment and machinery used in construction or agriculture
• Fine arts and valuable items that require specialized protection
• Business property temporarily off-premises

Because of this diversity, policies are often customized to meet the specific needs of businesses or individuals. For example, an art gallery may require a policy that not only covers the transportation of artworks but also includes climate control specifications to protect sensitive pieces from environmental damage. Similarly, a logistics company may seek coverage that extends to various modes of transportation, ensuring that their cargo is protected whether it's on a truck, train, or even a ship. This level of customization allows businesses to operate with greater confidence, knowing that their unique risks are adequately addressed.

Moreover, inland marine insurance can also extend to cover specialized equipment, such as tools and machinery that are vital for operations in the field. For contractors, having coverage for tools that are often left on job sites or transported between locations can be a game-changer, as it mitigates the risk of loss due to theft or accidental damage. As industries evolve and new technologies emerge, the scope of inland marine insurance continues to adapt, offering businesses the flexibility they need to thrive in a fast-paced environment.

The inland marine insurance market has seen significant changes driven by broader economic and technological trends. One major factor is the surge in e-commerce, which has transformed how goods are transported and stored. In 2022, e-commerce sales in the United States alone reached over USD 1 trillion, accounting for nearly 15% of total retail sales, according to the U.S. Census Bureau. This growth has increased demand for inland marine insurance as more goods move through complex supply chains. The rise of online shopping has not only changed consumer behavior but also necessitated a reevaluation of logistics strategies, leading to a greater emphasis on securing goods during transit. Retailers are increasingly investing in advanced tracking technologies and insurance solutions to mitigate risks associated with shipping delays and potential losses.

Additionally, the U.S. Department of Transportation projects a 45% increase in the value of freight moved by all transportation modes from 2020 to 2045. This expected growth underscores the expanding role of inland marine insurance in safeguarding an ever-larger volume of transported goods. As businesses expand their reach into new markets, the need for comprehensive coverage that addresses unique regional risks becomes paramount. Insurers are now tasked with developing tailored policies that not only protect against traditional risks but also account for emerging threats such as cyberattacks on logistics systems and environmental hazards impacting transportation routes.

Impact of Supply Chain Fragmentation

Global trade is no longer characterized by seamless integration but rather increasing fragmentation. This shift introduces new challenges for risk assessment and underwriting. Frédéric Denèfle, President of the International Union of Marine Insurance (IUMI), notes that this fragmentation creates both challenges and opportunities for innovation within the marine insurance sector. As companies increasingly rely on a network of suppliers and logistics providers, the complexity of managing these relationships can lead to unforeseen vulnerabilities. Insurers must now navigate a landscape where traditional risk models may fall short, necessitating the development of more sophisticated analytical tools to accurately assess potential exposures.

As supply chains become more complex and dispersed, inland marine insurance providers must adapt to cover a wider variety of risks, including those related to delays, theft, and damage during transit or temporary storage. The integration of technology, such as the Internet of Things (IoT) devices that monitor cargo conditions in real-time, is becoming essential. These innovations not only enhance visibility throughout the supply chain but also enable insurers to offer more dynamic pricing models based on actual risk exposure. Furthermore, as sustainability becomes a key focus for businesses, insurers are also exploring how to incorporate environmental considerations into their coverage options, ensuring that policies align with the growing demand for responsible and eco-friendly logistics practices.

Technology is reshaping the logistics and transportation landscape, but it also introduces new vulnerabilities. Digital systems that manage supply chains and transportation are increasingly exposed to cyber risks, including business interruptions and hijacking attempts. Janelle Griffith, North American Logistics Practice Leader for Marsh LLC, highlights that “the more we use technology, the more these digital systems are essentially exposed to business interruption and to hijacking.”

This evolving risk profile means inland marine insurance policies are expanding to include coverage for cyber-related incidents and other modern threats, ensuring businesses remain protected in a digital-first world. The integration of Internet of Things (IoT) devices in logistics further complicates this landscape, as these interconnected systems can serve as gateways for cybercriminals. For instance, a compromised GPS tracking system could lead to the rerouting of shipments, resulting in significant financial losses and reputational damage for companies. As organizations increasingly rely on real-time data to optimize their operations, the need for robust cybersecurity measures becomes paramount.

Innovations in Coverage

Insurers are responding to these changes by developing new products that address emerging risks. For example, in May 2025, Japanese insurer Tokio Marine launched a dedicated unit to insure activities related to the low-carbon transition, aiming to generate USD 1 billion in revenues by 2030. This initiative reflects a broader trend of marine insurers embracing sustainability and environmental considerations as part of their risk portfolios. The focus on low-carbon initiatives not only helps mitigate environmental impacts but also aligns with global regulatory shifts towards greener practices, making it a timely and relevant offering in the insurance market.

Such innovations demonstrate how inland marine insurance is evolving beyond traditional coverage to meet the demands of a changing global economy. Insurers are now incorporating advanced analytics and machine learning into their underwriting processes, allowing for a more nuanced understanding of risk factors associated with climate change and technological advancements. This proactive approach enables insurers to tailor policies that not only cover physical assets but also address the intangible risks associated with digital transformations and environmental sustainability, ensuring that businesses are equipped to navigate the complexities of the modern marketplace.

The inland marine insurance market is competitive and dynamic, with major insurers expanding their offerings to capture new opportunities. In August 2024, AXA XL entered into an underwriting agreement with U.S. Marine Insurance Group to extend its inland marine insurance capabilities within the supply chain and transportation sectors. This partnership aims to leverage combined expertise to better serve clients facing complex logistical risks. By pooling resources and knowledge, both companies are poised to enhance their product offerings, ensuring that they can address the unique challenges posed by modern transportation networks, including the rise of e-commerce and global supply chains.

These strategic moves reflect the growing recognition of inland marine insurance as a critical component of risk management for businesses involved in transportation and logistics. As companies increasingly rely on intricate networks to move goods across borders, the need for specialized coverage that protects against loss or damage during transit becomes paramount. Insurers are now focusing on tailoring policies that not only cover physical assets but also address cyber risks and regulatory compliance, which are becoming more prevalent in the digital age.

Global Premium Growth

The global marine insurance premium base reached approximately USD 38.9 billion in 2023, marking a 5.9% increase from the previous year, according to the International Union of Marine Insurance (IUMI). This growth is mirrored in the inland marine segment, which continues to rebound strongly after pandemic-related setbacks. The increasing demand for inland marine insurance can be attributed to several factors, including heightened awareness of risk management, the expansion of trade routes, and the ongoing evolution of technology in logistics. Companies are now more inclined to invest in comprehensive insurance solutions that protect their assets throughout the entire supply chain.

Such figures highlight the resilience and expanding importance of inland marine insurance within the broader marine insurance industry. As businesses navigate a landscape marked by volatility and uncertainty, the role of inland marine insurance is becoming even more critical. Insurers are innovating their offerings, incorporating advanced analytics and data-driven insights to better assess risks and tailor coverage options. This proactive approach not only enhances the value proposition for clients but also positions insurers to remain competitive in an ever-evolving market, where agility and responsiveness are essential for success.

For businesses involved in transporting goods, owning mobile equipment, or storing valuable property off-site, inland marine insurance provides essential protection that traditional property or cargo insurance may not cover. It helps mitigate financial losses from theft, damage, or delays that can disrupt operations and erode profitability. This type of insurance is particularly vital for industries such as construction, manufacturing, and logistics, where the movement of goods and equipment is a daily occurrence. The potential for loss is significant, and without proper coverage, businesses could face devastating financial repercussions that could threaten their very existence.

Moreover, as supply chains become more complex and interconnected, the risks associated with transportation and storage increase. Inland marine insurance offers tailored solutions to address these evolving challenges, ensuring businesses can operate with greater confidence and security. For instance, it can cover specialized equipment like cranes or trailers that are often used in construction projects, providing peace of mind that these essential tools are protected against unforeseen events. Additionally, with the rise of e-commerce, businesses are increasingly shipping products directly to consumers, further emphasizing the need for comprehensive coverage that accounts for goods in transit.

Considerations for Buyers

When selecting inland marine insurance, it is important to assess the specific risks associated with your operations, including the types of goods transported, routes taken, and storage conditions. Working with knowledgeable insurance providers can help tailor coverage to your unique needs, balancing cost and protection effectively. For example, a business that frequently ships high-value electronics may require a different policy than one that transports raw materials. Understanding these nuances can help ensure that you are not underinsured or overpaying for unnecessary coverage.

Given the rapid changes in technology and trade environments, staying informed about emerging risks and insurance innovations is also critical to maintaining adequate coverage. New technologies, such as GPS tracking and automated inventory management systems, can enhance security and efficiency, but they also introduce new vulnerabilities that need to be addressed in your insurance policy. Additionally, as regulations and compliance requirements evolve, businesses must remain vigilant to ensure their insurance aligns with legal standards and industry best practices. Engaging in regular reviews of your policy and risk management strategies can help safeguard your assets and ensure your business remains resilient in an ever-changing landscape.

Inland marine insurance plays a vital role in protecting the movement and storage of goods in today’s fast-paced and complex supply chains. With significant market growth driven by e-commerce expansion and increased freight volumes, this insurance segment is more important than ever.

As the industry adapts to new risks—from digital vulnerabilities to environmental transitions—businesses must stay proactive in managing their insurance needs. By understanding the scope, benefits, and trends of inland marine insurance, companies can better safeguard their assets and ensure continuity in an increasingly fragmented global trade landscape.

For those interested in the latest developments and market insights, resources such as Coherent Market Insights provide valuable information on emerging trends and strategic moves within the marine insurance sector.