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Inland marine insurers expand capacity as equipment values surge
Insureds may be able to negotiate higher temporary storage and warehouse legal liability limits, including $30 million to $50 million in some data center setups.
Inland marine insurance is in a comparatively soft, buyer friendly period as carriers expand capacity and pricing pressure, according to an Amwins underwriting expert. Jason Baynard, senior vice president at Amwins Program Underwriters, said the first-party nature of many inland marine risks helps insurers price more confidently because losses are tied to the insured’s own equipment. Baynard added that insurers’ appetite has been further supported by current pricing dynamics, which he described as contributing to some market softening. That environment, he said, is shifting conversations away from premium reductions alone and toward negotiating broader protection and higher limits. The underwriting challenge is rising equipment values and growing property concentrations, particularly tied to the US data center construction boom. Baynard said contractors may need to store machinery or components before installation, creating potential demand for warehouse legal liability and property of-others coverage that can reach levels rarely seen on traditional projects. He noted that increased aggregation of values can translate into temporary storage limits of $30 million, $40 million, or $50 million. Baynard also cautioned that insureds should not rely on headline limits without a detailed review of how values are calculated, warning that discussions can become “numbers numb” when valuations reach tens of billions of dollars or individual items are valued at $10 million.