The general idea of a commercial warehouse is fairly simple: store customers’ goods and collect rent. But in reality, warehouse owners actually have to consider a number of variables that can have some serious consequences on their property, their business, AND their livelihood. But with the right insurance coverages in place, they can help minimize the damage and keep your business going strong.
Fortunately, our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a hand-picked selection of top insurance policies to cover both your business and your employees. But first, let’s talk more about the protection you need and why you need it.
What is Warehouse Insurance?
Protecting your buildings and what’s inside are among the most important goals for any warehouse owner. After all, your building and whatever’s stored inside are your business. Warehouse insurance, simply put, is just a set of coverages put together that are designed to protect you from liability and property claims that may come up.
The exact type and amount of coverage you need depend on the type of structure you own, the kind of items you store inside and the way you handle those items. Are the items highly flammable? Do you have effective security and sprinkler systems? Do you protect stored items from infestation, water, and temperature variations?
All of these variables can play a role in causing damage to the goods you have agreed to store and protect.
Property and Liability Insurance for Warehouse Owners
While the purpose of your business is to store and protect other people’s property, your first step is to secure your own. With warehouse business property insurance, you can protect your buildings, their contents, your grounds, and other structures from damage due to fire, weather, smoke, theft, and other causes of loss. Business property insurance protects your assets, including office equipment, computers, furniture, tools, and equipment.
Like any other business, you may also need commercial general liability coverage in order to protect anyone on your premises from accidents, injuries, and property damage caused by your negligence.
Legal Liability Coverage for Warehouse Protects Owners
Warehouse owners assume responsibility for their customers’ goods for a fee. Typically, the warehouse owner is expected to provide “reasonable care” for the goods you store. If, though, the warehouse owner is negligent in some manner and a customer’s property ends up damaged, the warehouse owner can be held liable for the loss.
Warehouse liability claims can come from a number of sources, including:
- Temperature variations
- Roof collapse
- Missing items
- Shipping and handling
- Improper facility maintenance
If your negligence leads to any one of these circumstances, you could be held liable and be sued. To protect yourself, you need insurance coverage that pays for your customers’ damaged, lost, or stolen property.
Some insurance companies offer warehouse legal liability insurance (also sometimes referred to as bailee’s coverage), a policy specifically designed to protect warehouse customers. And remember, while warehouse legal liability insurance applies to cases where you’re found negligent, your customers still need to insure their goods stored in your warehouse for other types of losses (fires, windstorms) that aren’t caused by your negligence.
Warehouse legal liability insurance can be complex and confusing — even exclude certain occurrences based on the legal agreements you have in place with your customers. A knowledgeable independent insurance agent with experience working with warehouse insurance can help you find the best coverage options for your specific business.
Other Warehouse Insurance Coverages to Consider
You may want to consider a few additional business insurance policies, depending on your business and its exposures:
Finding and Comparing Warehouse Insurance Quotes
Our agents will review your needs and help you evaluate which warehouse insurance coverages make the most sense. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up — in a comprehensive and affordable way.
What's So Great About Independent Insurance Agents?
Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.