Property and Casualty Insurance Practice Exam

What does Inland Marine Insurance provide coverage for?

1. Only commercial structures

2. Agreements during transportation of goods

3. Portable property and goods in transit

4. Only residential properties

The correct answer is: Portable property and goods in transit

Inland Marine Insurance is primarily designed to cover portable property and goods in transit. This type of insurance evolved from the need to protect goods being transported over land, particularly before the establishment of more comprehensive transportation and shipping insurance. It covers items that may be moved from one location to another, such as equipment, tools, and inventory. Additionally, it can cover items that are at a fixed location but are specifically designed for transport, such as construction equipment that is relocated frequently. The focus on portable property and goods in transit under Inland Marine Insurance reflects its key purpose: to protect insureds against losses that may occur as a result of accidents or mishaps during the transit of their goods. This makes it distinct from other types of property insurance, which may cover stationary assets such as commercial or residential structures, but not the dynamic nature of goods on the move or personal property that can easily be transported.