Forestry contractors depend on a wide range of heavy equipment to get work done, whether it’s skidders, feller bunchers or chippers.
Owning all that machinery outright just isn’t always realistic. It’s common to borrow a piece of equipment from a partner, rent from a dealer, or take on a short-term lease when a job calls for something outside your current fleet. The problem? When that borrowed equipment is damaged or destroyed on a remote job site, most standard commercial policies won’t cover it.
This article covers what inland marine coverage is, why it matters for forestry contractors using equipment they do not own, where standard policies fall short, and what to look for when adding this protection to your program.
What Does Inland Marine Coverage Entail?
Although it has “marine” in its name, inland marine insurance is unrelated to the ocean. It grew out of marine insurance originally designed to protect goods shipped by water, and it expanded over time to cover property that moves over land, including equipment in transit, gear stored off-site, and tools used at temporary job locations.
Many inland marine coverage plans protect property regardless of its location, which is why these policies are often called “floater” policies. For contractors, this typically takes the form of an equipment floater or a contractor’s equipment floater policy.
The Gap Standard Policies Do Not Address
Standard commercial property insurance is tied to a fixed location. Once equipment leaves your shop or yard, coverage often doesn’t follow.
Standard business property policies generally only cover property at a fixed location and may not adequately protect tools or equipment once they’re off-site. The gap only grows when the equipment isn’t yours to begin with. Standard property policies are built around property you own. A borrowed skidder or rented chipper typically won’t appear on your property policy. A loss could leave you personally responsible for repair or replacement costs.
Why Forestry Work Amplifies the Risk
Forestry operations don’t happen in controlled environments. Logging often occurs in remote, isolated settings with rough or unstable terrain, and contractors face inclement weather or work in areas with limited access to emergency services. Those are the exact conditions where equipment is most likely to be damaged.
The U.S. Bureau of Labor Statistics reported 67 fatalities in the forestry and logging industry in 2024 alone. The same hazards that put workers at risk also increase the risk of damage to machinery. Add the possibility of theft risk from remote overnight job sites, and it’s clear why standard policies leave too many forestry contractors exposed.
How Inland Marine Coverage Fills the Gap
An inland marine floater follows your equipment, protecting it wherever the work takes you, not just at a fixed address. Inland marine coverage forms are generally broader than standard property coverage, covering a wider range of causes of loss and locations. When structured properly, inland marine coverage for forestry contractors can address:
- Accidental damage and collisions: rollovers, equipment strikes, and crushing are common in rough terrain
- Theft from remote job sites: a real concern when machinery is left overnight with limited security
- Weather-related damage: floods, storms, fallen trees, and lightning strikes
- Equipment in transit: protection while machinery is being transported between sites
- Borrowed, rented, and leased equipment: non-owned gear you’re responsible for under a written agreement
That last point may matter most to forestry contractors working with non-owned equipment. When you sign a rental agreement or take possession of a partner’s equipment, you’re often accepting financial responsibility for it. Without inland marine coverage specifically structured to include rented or borrowed gear, that responsibility could mean a significant out-of-pocket loss.
What to Watch for With Non-Owned Equipment
Borrowed and rented equipment coverage isn’t automatic in every inland marine policy. Keep these points in mind when reviewing a policy:
- Per-item limits: Confirm the sublimit for borrowed equipment actually matches the value of what you’re responsible for.
- Reporting requirements: Some policies require you to report rented or borrowed equipment within a set timeframe after taking possession.
- Rental agreement language: When you sign a rental contract, you may be accepting financial responsibility for the equipment. Your coverage needs to align with those terms.
- Exclusions: Normal wear and tear, mechanical breakdown, and intentional damage are typically excluded, whether the equipment is owned or borrowed.
Borrowed equipment insurance should fit how you actually work, across multiple sites, in rugged conditions, often with non-owned gear on the line. A floater policy built for reality is a meaningful layer of protection that standard coverage can’t provide.
Talk to Burton & Company About Your Coverage
If you’re a forestry contractor working with borrowed, rented, or leased equipment, now is a good time to review your current insurance program. Standard policies frequently contain expensive gaps that typically only reveal themselves after a loss occurs.
At Burton & Company, we’ve been helping Virginia businesses find the right coverage since 1891. We’ll look at your actual operations and help you build an insurance program that reflects how your work really runs, including inland marine coverage for the equipment you rely on, whether it’s yours or not.
Contact our team today online or call (888) 652-1046 to initiate the discussion.
