What does inland marine insurance NOT cover?

Inland marine insurance is essential for tree service companies, covering portable equipment and tools while in transit and at job sites. However, understanding what inland marine does not cover is equally important — assumptions about coverage that turn out to be wrong typically surface at the worst possible moment: when you are filing a claim.

The most significant exclusion is vehicles licensed for road use. Your trucks, chippers mounted on trailers with license plates, and any vehicle that requires registration are covered under commercial auto, not inland marine. However, equipment that is mounted on or attached to licensed vehicles but is not part of the vehicle itself — such as a crane boom, aerial lift, or hydraulic loader — may fall into a gap between auto and inland marine depending on policy language. Clarify with your broker exactly where auto coverage ends and inland marine begins for each piece of mounted equipment.

Mechanical and electrical breakdown is excluded from standard inland marine policies. If your stump grinder's engine fails due to a mechanical defect, or a chainsaw's ignition system dies, inland marine does not pay for the repair. An equipment breakdown (boiler and machinery) policy covers these failures, but many tree service companies do not carry one. Similarly, wear and tear, gradual deterioration, rust, corrosion, and damage from lack of maintenance are excluded. If a piece of equipment fails because you did not maintain it according to manufacturer specifications, the claim will be denied.

Employee-owned tools are not covered under your company's inland marine policy unless you specifically schedule them or purchase a tool floater. If a crew member's personal chainsaw is stolen from your job site, your inland marine policy does not respond — the employee would need to file under their own homeowners or renters policy (which may also exclude business-use tools). If your business model relies on employees providing their own tools, consider adding a tool floater or requiring employees to carry their own coverage.

Flood and earthquake are commonly excluded perils in inland marine policies, though some carriers offer them as optional coverage. If your equipment is staged at a job site in a flood-prone area and a flash flood sweeps through, the loss may not be covered without a specific flood endorsement. Similarly, mysterious disappearance — equipment that simply goes missing without evidence of theft — may be excluded or covered only with a higher deductible.

Other common exclusions include government seizure or confiscation, intentional damage, loss due to voluntary parting with property (a scam or fraud situation), and war or terrorism. Review your inland marine policy's exclusions section carefully and discuss any gaps with your broker. For high-value equipment like cranes, aerial lifts, and specialized vehicles, consider scheduling them individually with agreed-upon values rather than relying on blanket coverage, which may apply depreciation or actual cash value at claim time rather than replacement cost.