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Now that summer has virtually arrived and the boating season is well underway we would like to turn our attention to one of Atlantic's core products, that is, Inland Transportation Insurance. Over the course of this Journal and the succeeding two Journals we will be investigating the origin, nature and function of both direct damage and liability exposures in the area of inland transit. This Journal will deal with the origin of inland transit insurance and its initial function of covering direct damage losses.

Historically, inland marine insurance picked up where ocean marine insurance left off by providing coverage for movable property and property in transit on land. As the insurance practitioner will know the original marine policy furnished insurance against perils while the property was on board the vessel and its development increased the scope of the insurance to cover cargo from the time the property left the premises at the point of origin until it was delivered to the premises of the consignee at destination. This, of course, involved coverage while the property was on land during transit. At the same time the development of land forms of transportation such as: railroads, motor trucks and airplanes all called for insurance against the perils of land transportation only. Thus, inland marine insurance was born.

The broadening of inland transit coverages evolved from the basic 'Named Perils' to 'All Risks' as the level of sophistication in methods of transport evolved during the last century.

Not only did the scope of the perils evolve, but also the definition of 'inland transit' property that could be considered under this heading. A general definition was established and agreed which was acceptable to both inland marine departments and property/liability departments in all insurance companies.

It is generally accepted that inland marine insurance includes at least the following classes:

This last item is a very large topic indeed and will be the basis of our next two Journals.

In summary, inland marine insurance policies may be divided into two groups: one form of property insurance indemnifying for damage to property and the other a form of liability insurance insuring against the consequences of legal liability for damages to property in the insured's custody.

Our next Journal will focus on the duties and responsibilities of a common carrier, hauling goods for others.

The Mariner's Smile

How do you decide to marry?

"You got to find somebody who like the same stuff. Like, if you like sports, she should like it that you like sports and she should keep the chips and dip coming." -Alan, age 10

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Peter J. Taylor, President. Underwriters and Intermediaries in Ocean and Air Cargo, Inland Transit, Transit Liabilities, Marine Liabilities, Commercial Hull, Yachts and Hovercraft.

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