Important Inland Marine Exclusions

The typical contractors equipment policy provides broad coverage for your owned equipment as long as it is in your care, control, and custody. Some of the most common exclusions are as follows:

• Transportation of goods of others—You do not have coverage for equipment of others that you are transporting. The only way to add coverage for this exposure is to secure “Motor Truck Coverage” (form enclosed) . In order for coverage to be in force you must have the MTC policy and also charge the owner of the equipment being transported and issue a bill of lading, shipping receipt etc.

• Equipment rented to others—once you give up control of equipment in a rental arrangement or otherwise, coverage ceases to exist on that piece of equipment. Insurance companies need to underwrite the people that actually operate insured equipment.  

• Equipment rented or borrowed by you—policy reads, “We cover only those described items for which a coverage amount is shown on your policy”. If you rent one or 2 pieces a year call each time you do so we add temporary coverage. If you do it routinely we can add coverage permanently to your policy. When coverage is added for rented equipment you still do not have coverage for the transportation of rented equipment; you need MTC for that exposure.