Back in the 16th century, some insurers and underwriters got together and created what was called marine coverage. Back then items were shipped overseas because there was no other way for goods to travel across the ocean. The seas were dangerous, just as they can be today, so the insurers offered coverage for cargo that was being shipped overseas.
The same concept and coverage is available today for your business property, though with different rules and a different name. Insurance companies offer inland marine coverage today for your businesses equipment, finished products, and other supplies in your care, custody or control nationwide. (Hence the inland part of the coverage.)
ACT Insurance offers inland marine, or Tools, Supplies, & Inventory Coverage, for those with an ACT Pro Policy. This coverage means that your creative business items can be protected as you travel to and from art shows, at art shows or festivals, and while your products and supplies are stored at your premises.
The following are answers to some frequently asked questions we get about this type of coverage:
How is my property valued? Will I get the retail value of my property back after a loss?
The policy specifically says that your property will be valued and replaced at an Actual Cash Value, which is defined as Replacement Cost minus Devaluation for normal wear and tear of the property.
Essentially, we may cover the cost of the supplies to create the finished product, but not the price at which you would sell the product. Because every artist values their artwork differently, we can only try to help you replace the supplies that were affected when the product was lost or damaged.
What is covered?
The equipment and supplies you use in your profession as an artist or crafter, as well as the inventory you may have securely stored in a location. Some of these items include easels, paintbrushes, and final products.
Is my time covered?
No. We appreciate the time it took to create your art, and while we can’t replace the hours and hours it took for you to complete the original work, we do everything we can to replace the tools and supplies that were lost or damaged so you can recreate the work.
Is my property covered while being shipped?
Inland Marine coverage may apply while property is being shipped through a carrier for hire, such as UPS or FedEx, as there is no exclusion for property in transit while in the custody of a carrier for hire.
We recommend purchasing shipping coverage directly from your shipping carrier for added protection while your products are in transit. If your shipment is lost or damaged, we also recommend filing a claim with us. An insurance adjuster will review the details of the loss and determine whether coverage may apply under your policy.
How much is it?
Tools, Supplies, & Inventory Coverage is an additional coverage you can add to any ACT Pro annual insurance plan. It is only $4.50 per month! The annual plan starts at just $24.25 per month.
Tools and equipment coverage is an important thing to have for your business. Think about the thousands — and possibly even tens of thousands — of dollars you have invested in your business. Without insurance, one accident, even a seemingly minor one, could destroy everything you have worked for. The best way to avoid this is to have insurance to protect your finances.
