Louisiana Inland Marine Insurance

Protecting Mobile Business Assets with Louisiana Inland Marine Insurance

Louisiana inland marine insurance covers property in transit and movable equipment that doesn't stay at one fixed location. That includes tools, machinery, and materials traveling between job sites, sitting in trailers, or waiting to be installed. Aubert Insurance Agency has written coverage like this from offices in Covington and Slidell since 1910.

The name confuses people. It has nothing to do with boats on the Tchefuncte. The term goes back to early cargo insurance, when underwriters extended ocean marine coverage to goods moving over land. Today it's the policy category for property that a building-based policy usually won't follow.

Here's the gap most contractors miss. A commercial property policy is written around a scheduled address, your shop or office. Once equipment leaves that address, coverage may shrink to a small off-premises limit or disappear entirely. For a general contractor in St. Tammany Parish with crews spread across Covington, Abita Springs, and Slidell, nearly all the valuable equipment spends its working life somewhere other than the shop.

Inland marine fills that gap through several policy forms, often called "floaters" because the coverage floats with the property. The four that matter most for Louisiana contractors are covered below.

Contractors Equipment and Tool Floaters

A contractors equipment floater covers the machinery and tools you own and use on jobs. It typically handles two buckets:

• Scheduled equipment: Higher-value items listed individually by make, model, serial number, and value. Think excavators, mini-excavators, skid steers, trenchers, generators, and light towers.
• Unscheduled tools: Smaller items covered as a group up to a blanket limit, often with a per-item cap. This bucket includes saws, drills, nail guns, laser levels, and compressors.

The most common mistake we see is the per-item cap. A contractor carries a $25,000 blanket limit for tools and assumes everything is covered. Then a $6,000 laser transit gets stolen, and the policy pays only up to its per-item maximum, which may be far lower. If you own anything pricey that isn't scheduled, check that cap.

Valuation matters just as much. Policies may pay actual cash value (replacement cost minus depreciation) or replacement cost. On a five-year-old skid steer, the difference between those two numbers can decide whether you keep working next week or wait months to save up. Ask which one you have before a claim forces the question.

Keep a current equipment list with serial numbers and photos. It takes an afternoon, and it can save weeks of claim back-and-forth.

Installation Floaters for Materials in Transit and On-Site

Coverage for Rented and Leased Equipment

Renting a boom lift for a two-week job feels simple until you read the rental agreement. Most agreements make you responsible for the equipment from pickup to return, including theft, fire, flood, and vandalism. Some also hold you liable for the rental company's lost income while the item is out of service.

You typically have three ways to handle that risk:

1. Buy the rental company's damage waiver. It's convenient, but it adds cost to every rental and often carries exclusions people don't read.
2. Add rented and leased equipment coverage to your contractors equipment floater. This is usually written with a set limit per item and may include coverage for rental payments you keep owing while a damaged item is replaced.
3. Schedule long-term leased equipment directly. If you lease a machine for a year or more, the lessor will likely require you to list it on your policy and name them as loss payee.

If you rent more than a few times a year, a policy endorsement often costs less over time than paying waivers on every contract. Watch the limit, though. A $50,000 rented equipment limit won't cover a $120,000 telehandler. Match your limit to the most expensive thing you realistically rent, not the average.

Addressing Theft From Job Sites and Trailers

Theft drives a large share of contractor equipment claims, and Louisiana job sites face their share of it. Open lots in growing areas along I-12 and Highway 190 are easy to reach after dark, and tools stored in enclosed trailers make tempting targets because thieves can hitch and haul the whole thing.

Inland marine forms typically cover theft, but the fine print shapes how much you collect. Look for these terms:

• Mysterious disappearance exclusions: If a tool is simply gone with no sign of forced entry, some policies won't pay.
• Vehicle and trailer conditions: Some forms require tools in an unattended vehicle or trailer to be locked, with visible signs of forced entry, for coverage to apply.
• Overnight storage requirements: A few policies limit coverage for tools left in an unattended truck bed overnight.
• Theft deductibles: Some carriers apply a higher deductible specifically to theft claims.

Simple steps help both with prevention and claims. Use hitch locks and wheel boots on trailers, install GPS trackers on high-value machines, and engrave or mark tools with a company identifier. File a police report right away, because nearly every carrier requires one.

Comparing Standard Property vs. Inland Marine Coverage

The last row matters. Inland marine and general liability do different jobs, and most contractors need both.

Common Questions About Louisiana Equipment Insurance

Does my general liability policy cover my tools? No. General liability pays for injuries or property damage you cause to other people. Your own tools and equipment need a separate policy, usually an inland marine floater.

Is inland marine insurance required in Louisiana? The state doesn't require it, but lenders, equipment lessors, and many general contractors require it in contracts. Liability requirements are a different story: under Act 757, the minimum liability insurance for residential construction, mold remediation, and home improvement contractors rose to $500,000 effective August 1, 2026.

Will my homeowners policy cover tools I use for my side business? Probably not much. Homeowners policies typically limit or exclude business property, especially once it leaves your home.

Are flood and hurricane damage covered? Many inland marine forms may cover flood and windstorm for movable equipment, unlike many property policies, but some carriers exclude or sublimit them in coastal areas. Ask directly and get the answer in writing.

Can I sue my insurer directly if a claim goes wrong? In most cases, not anymore. A Louisiana appeals court affirmed in July 2026 that the repeal of the Direct Action Statute applies retroactively, which is one more reason to understand your policy before a loss happens.

How do I figure out how much tool coverage I need? Walk through your truck, trailer, and shop with a notepad and total what it would cost to replace everything new. Then list separately any single item worth more than your policy's per-item cap.

Making the Right Choice for Your Louisiana Business