Warehouses And Storage Insurance FAQ

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Get answers to small business insurance frequently questions including costs, coverages, minimum requirements, certificates & more.

Types Of Small Business Insurance

  • Includes medical payments, legal representation, and defense against libel and slander accusations.
  • Provides financial protection if an employee has a job-related accident or illness.
  • Bundles general liability insurance and commercial property into one affordable policy.
  • Pays to repair or replace your business property if it's stolen, damaged, or destroyed in a fire or natural disaster.
  • Covers mistakes or alleged mistakes on your part (errors) & failures or alleged failures to perform a service (omissions).
  • Is liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business.
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Frequently Asked Questions About Small Business Insurance

How much does general liability insurance cost?

In 2019, commercial general liability costs can vary widely based on industry. Businesses in higher risk industries pay more. Premiums are also determined by zip code and often payroll and/or gross sales. You can request a free quote to get an exact premium for your business. Read more...

What types of business insurance do I need?

Almost every business needs general liability and commercial property insurance at the very least. If you have any non-owner employees, you'll most likely need workers compensation insurance too as most state require it. It all depends on the risks your business faces. Read more...

How does general liability insurance work?

Having general liability is the basis of any business insurance program. If you can afford only one commercial insurance policy for your small business - then you should get a commercial general liability policy, because it offers protection against a wide range of common but unexpected risks. Read more...

What is a Certificate of Insurance?

A Certificate of Insurance (COI) is proof of coverage. It verifies that you have insurance coverage for your small business, & contains information on types and limits of coverage, insurance company, policy number, named insured, and the effective date of the policy. Read more...
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Warehouses And Storage Insurance FAQ Information

Warehouses And Storage Insurance FAQ

Warehouses And Storage Insurance FAQ. The problems involved with insuring warehouses or storage risks are basically the same as those involved with insuring any large building. Property values are usually high, as is the fire-fuel-loading based on the combustibility of the merchandise stored. The type of property stored and the extent to which it is moved around inside the building dictates the loss control measures needed.

In addition there is the legal liability for property of others while stored and in the care, custody and control of the warehouse operation. Employee theft is always an issue and can be very significant, depending on the type of property involved.

The type of property involved and its related material-handling issues makes workers compensation insurance another very important coverage to consider.

We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Warehouses And Storage Insurance FAQ.

Read the Warehouses And Storage Insurance FAQ to learn what type of commercial insurance coverages are right for your business - including liability, property, workers compensation and other specialty policies.

What Is A Warehouse Or Storage Business?

According to Wikipedia, "A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns or villages."

Warehouses And Storage places include - but are not limited to - the following types of businesses:

  • Cold Storage Plants
  • Frozen Food Lockers
  • Furniture Storage Operations
  • General Merchandise Storage Facilities
  • Grain Elevators
  • Meat Storage Facilities
  • Mini-Warehouses

You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.

Types Of Warehouses And Storage Insurance Policies

Following are some suggested commercial policies and coverages applicable for warhousing and storage businesses:


The commercial package policy (CPP) is the most convenient and cost effective way to combine two or more coverages into a single policy. Warehousing operations are not usually eligible for coverage under a businessowners policy.

Types Of Warehouses And Storage Package Policies:

  • Commercial Package Policy (CPP)

The property values are concentrated in the items defined as building, even though the items may appear to be business personal property. The actual business personal property values are low and generally limited to office items. The personal property of others is best covered with an inland marine coverage part.

Time element exposures are significant but, depending on the contracts, may be more about extra expense exposures than business income.

Types Of Property Coverages:

  • Building
  • Business Personal Property
  • Personal Property of Others
  • Improvements and Betterments

Warehouse legal liability is a bailee coverage form specifically designed for warehousing operations. Fine arts and commercial articles floaters and furriers customers coverage forms might also be needed for certain operations. Motor truck cargo forms are also needed if the operation provides merchandise pickup, delivery or other trucking services.

Types Of Inland Marine Coverages:

  • Accounts Receivable Coverage
  • Bailee Customers Coverage
  • Commercial Articles Floaters
  • Contractors Equipment Coverage
  • Difference in Conditions (DIC) Coverage
  • Electronic Data Processing Equipment Coverage
  • Fine Arts Coverage
  • Furriers Customers Coverage
  • Furriers Customers Excess Legal Liability Coverage
  • Motor Truck Cargo Legal Liability Coverage
  • Signs Coverage
  • Valuable Papers and Records Coverage
  • Warehouse Legal Liability Coverage

Employee theft is the most important crime coverage issue. If employees pick up and deliver merchandise from customers' premises, a clients' property coverage endorsement should be considered. Other coverages may also be needed, depending on the types of property stored and the services provided.

Types Of Crime Coverages:

  • Computer and Funds Transfer Fraud Coverage
  • Employee Theft Coverage
  • Forgery or Alteration Coverage
  • Inside The Premises-Theft of Money and Securities Coverage
  • Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
  • Money Orders and Counterfeit Money Coverage
  • Outside The Premises Coverage

The promises made by warehouse operations often are backed by surety bonds because of the value of the contracts. In addition, other bonds may be required based on the property and the governmental entities with jurisdiction.

Types Of Surety Coverages:

  • Contract-Performance of Service or Supply Bonds
  • Court Bonds
  • Fiduciary Bonds
  • License and Permit Bonds
  • Miscellaneous Surety Bonds

The liability hazards and exposures for warehouse operations are minimal because customer visits are infrequent and access is limited. However, mini-warehouses are different and have a much greater premises liability exposure.

If the operation has a railroad sidetrack or spur on the property, additional coverage in the form of a railroad protective policy may be needed.

Types Of Liability Coverages:

  • Commercial General Liability (CGL) Coverage
  • Employee Benefits Liability Coverage
  • Employment-Related Practices Coverage
  • Owners and Contractors Protective (OCP) Liability Coverage
  • Railroad Protective Liability Coverage

Automobile exposures may be limited to hired and non-owned auto or, depending on the nature of the operations and services provided, the operation may have a much more significant trucking exposure.

Types Of Business Auto Coverages:

  • Auto Medical Payments
  • Business Auto Coverage
  • Collision Coverage
  • Comprehensive Coverage
  • Federal Motor Carrier Safety Administration (FMCSA) Endorsements
  • Hired & Non-owned Auto Coverage (HNOA)
  • Intrastate Supervision
  • Motor Carrier Coverage Form
  • Public and Contract Carriers
  • Uninsured/Underinsured Motorists Coverage

Automation in many warehouse operations has dramatically reduced the number of individuals employed but workers compensation exposure continues to exist so coverage is still required. If the warehouse is located in a coastal area or along navigable waters, and workers load and unload ships and other vessels, Longshore and Harbor Workers' Compensation Act coverage is also required.

Types Of Workers Comp Coverages:

  • Excess Workers Compensation Self-Insurance Bonds
  • Longshore and Harbor Workers' Compensation Act Coverage
  • Stop-Gap or Employers Liability Coverage
  • Workers Compensation and Employers Liability Coverage

While the premises and products liability loss exposures are very limited, the employers liability loss potential is high. The auto liability loss potential ranges from minor to severe, depending on the extent of the trucking operations and services provided.

Types Of Excess Liability Coverages:

  • Excess Liability Coverage
  • Umbrella Coverage

Depending on the unique features or peculiar characteristics of their operations, some wholesalers may have unusual exposures. One or more of the following coverages may be appropriate:

Types Of Specialty Coverages:

  • Business Legal Expense Coverage
  • Cyber Liability Coverage
  • Directors and Officers Liability Coverage
  • Environmental Impairment Liability Coverage
  • Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
  • Identity Theft Insurance
  • Risk Retention Group Liability Coverage
  • Solar Energy System Coverage
  • Tax Liability Coverage
  • Terrorism Insurance Coverage
  • Transportation Brokers Contingent Cargo Coverage
  • Underground Storage Tank (UST) Liability Coverage
  • Unmanned Aerial Vehicles (UAV) (Drones)

Warehouses And Storage Insurance FAQ - The Bottom Line

There are many commercial insurance policies available for Warehouses And Storage. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring storing and warehousing businesses.

Frequently Asked Questions By Industry

Learn about the coverages available for specific industires with the Insurance FAQs below:

Warehouses And Storage Insurance FAQ
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