What is inland marine insurance for tree services?

Inland marine insurance is specifically designed to protect property that moves from location to location, making it essential for tree service companies whose equipment spends most of its life on trucks and job sites rather than sitting in a warehouse. The name "inland marine" is a historical artifact from maritime cargo insurance — today it covers any movable commercial property transported over land.

For tree service companies, inland marine typically covers chainsaws, chippers, stump grinders, aerial lifts, hand tools, rigging equipment, safety gear, and specialized attachments. A standard commercial property policy — whether standalone or as part of a Business Owners Policy (BOP) — only covers equipment at your listed business premises. The moment your chipper leaves the yard on a trailer, it falls outside the property policy's coverage territory. Inland marine fills this gap.

Policies can be written on a scheduled basis (listing each piece of equipment with a stated value) or on a blanket basis (covering all equipment up to a total limit). Scheduled coverage is more precise and eliminates disputes about what is covered, but requires updating whenever you add or sell equipment. Blanket coverage is more flexible but may have lower per-item limits. Most tree service companies use a combination: scheduling high-value items like chippers ($15,000 to $60,000) and aerial lifts ($30,000 to $150,000) while blanketing hand tools and smaller items.

Inland marine policies cover perils including theft, vandalism, fire, collision during transport, and accidental damage. Some policies also cover equipment breakdown — mechanical or electrical failure — which can be valuable for expensive items like chippers and lifts. Be aware that most policies exclude normal wear and tear, gradual deterioration, and damage from lack of maintenance.

Premiums for inland marine coverage are typically 1 to 3 percent of the total insured value annually. A tree service company with $100,000 in total scheduled equipment might pay $1,000 to $3,000 per year. Deductibles usually range from $250 to $1,000 per item. Given that a single stolen chainsaw can cost $800 to $1,500 and a chipper can cost $20,000 to $50,000, the premium is modest relative to the potential loss.