Self-Storage Insurance Kansas Policy Information
Self-Storage Insurance Kansas. We live in a time where people own more things and the more things they own, the less space they have. For this reason, the self-storage industry has risen in demand. Although you can make money, there are many risks that come with operating this type of business.
Mini-warehouses offer long– and short-term storage facilities to both business and residential customers. The length of storage varies from a few days to years, depending on the customer's need. Individual storage units vary in size. Customers generally provide their own locks or security codes to ensure privacy and restrict access to their belongings.
While office hours are limited, customers must be able to access their individual units 24 hours a day, seven days a week. Units may or may not be climate-controlled. Some mini-warehouses sell boxes and packaging supplies, or offer free use of dollies. Others rent trucks and trailers to customers to transport their goods to the storage facility.
With the number of risks faced in a self storage operation, you should get self-storage insurance Kansas to protect your facilities. In this post, we'll take a look at the different types of insurance policies to keep your KS self-storage business protected.
Self-storage insurance Kansas protects your facility from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Property Coverage For Your Storage Facility
When operating a self-storage building, you customers should be required to have insurance to protect their own property. The most important need for you is the protection of your business property. Speaking with an experienced insurance agent can help you to find the right insurance for your self-storage business. Before speaking with one, it's a good idea to know the basics insurance policy you can get. Here are some of the insurance policies you may discuss with your insurance agent:
Business Property Insurance - This offers protection for the things in your main office, like computers, filing cabinets or office furniture. If they are damaged, then this insurance helps with the costs.
Commercial Property Insurance - If perils such as fire, wind, hail or vandalism destroy causes damage to your buildings and units then having this insurance provides you with the protection you need. If there are fences or gates for your business, they can be covered by this self-storage insurance Kansas.
Equipment Breakdown Insurance - If you own climate-controlled units, then it's important for you to have this insurance. If your heating or cooling system develops a problem, then this insurance covers the repairs and replacements costs. This insurance helps to minimize the number of expenses you incur as a result of your machinery breaking down and helps with getting the problem fixed quickly.
Flood Insurance - A flood can cause lots of damage to your business. This loss can become very expensive for your business. Flood damages are not covered by your building or business property insurance plans. For this reason having flood insurance is important. Speaking with an independent insurance agent can help you to get a commercial flood insurance policy with the National Flood Insurance program.
The Importance Of Liability Insurance
When operating a KS self-storage business, you're not liable if damage happens to the property of customers who store things in your units. Although this is the case, it doesn't mean they can't sue you. Self-storage insurance Kansas helps to protect your business from financial loss if someone gets hurt and your business is sued.
General Liability Insurance - If an accident happens while on the property of your business and causes damage to a third party then having this insurance provides you with protection against it. This insurance also provides protection for copyright infringement.
Employment Practices Liability Insurance - With this self-storage insurance Kansas, you are provided with coverage for legal defense fees and financial damages caused by a lawsuit by an employee or former employee on the grounds of perceived illegal business practice, discrimination or wrongful termination.
Cyber Liability Insurance - If you use a computer to store the personal information of your customers such as their financial information and your database is hacked unfortunately you can be sued. A lawsuit in this type of situation could be costly for your business if you don't have cyber liability coverage.
Workers Compensation - Workers comp is require in most states for any non-owner employees. To ensure your employees are always protected while working you must have KS workers compensation. If an employee is injured while on the job and has to go to the hospital, then this insurance policy helps with the costs associated. If an injury results in a fatality then this insurance pays benefits to the surviving family.
Kansas Self-Storage Unit's Risks & Exposures
Premises liability exposure is moderate due to the regular visits by clients to their rental units. Maintenance and housekeeping can prevent losses due to slips, trips, and falls. Sidewalks, parking lots, and entrances to units must be in good condition. Vacant units should be inspected and cleaned before leasing to the next client. There must be adequate security in place, including lighting and fencing. In some cases, 24-hour security is appropriate.
Personal injury exposures can arise from allegations of invasion of privacy, wrongful eviction, assault and battery, and negligent infliction of emotional distress. There should be written procedures on the handling of late payments from clients and the confiscation and sale of stored property to pay back rental fees.
Workers compensation exposure can be limited to that of an office, or more extensive if packing services are offered. Back and lifting injuries, hernias, sprains, and strains may occur as spaces are cleared out. The training of workers in material lifting and conveying devices is important. Workers should be trained to respond appropriately to hold-ups and to unhappy clients whose property is being confiscated due to nonpayment of rents.
Property exposures are largely unknown because there are no requirements regarding disclosure of contents. While there may be leases or contracts prohibiting the storage of flammables and hazardous materials, violations are not usually noted until after a loss. Fire can start from the storage of flammables, escape of fumes from stored vehicles or watercraft, or from faulty or inadequate electrical wiring.
All wiring must be up to code and adequate for the operation. Good housekeeping and fire controls are critical. Smoking should be prohibited. Stored items may be a target for thieves. Security should be appropriate for the types and values of items stored and for the location.
Equipment breakdown exposure is moderate if units are climate-controlled.
Crime exposure is from employee dishonesty and money and securities. Background checks, including criminal history, should be conducted on all employees handling money. Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Receipts must be provided for all payments and compared to money received.
Inland marine exposures include accounts receivables, computers, valuable papers and records, and warehouse operators' legal liability. Warehouse operators' legal liability will depend on the contract between the facility and its customers, which should spell out who is responsible for damage to stored goods.
If climate-controlled units are offered and the equipment breaks down, the warehouse could be held liable for damage to stored goods. If locks are provided to customers, they should be changed regularly. There should be firewalls between storage units to prevent access from adjacent units. All data should be duplicated and placed off site for easy replication.
Commercial auto exposure can be high if pickup and delivery services are offered. All employee drivers must be well trained and have valid licenses for the type of vehicle being driven. They must be trained in appropriate handling methods. MVRs must be run on a regular basis. Random drug and alcohol testing should be required.
Vehicles must be well maintained with records kept at a central location. If vehicles or trailers are rented to customers, their driving habits are unknown to the warehouse. A copy of the renter's driver's license and proof of insurance should be retained. The rental contract should identify permitted drivers and state that unlicensed or minor drivers are not allowed to drive the rented vehicles. It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle to limit the warehouse's exposure to vicarious liability.
If a collision damage waiver is offered, the customer's signature is needed to document whether this was purchased or declined. The customer should also be required to sign a vehicle pre-inspection form to minimize disputes when the vehicle is returned with damages.
KS Self Storage Insurance
A lawsuit could destroy your business and everything you've worked for in your business. Owning a business in the self-storage industry can be lucrative, but there are many risks that you face operating one. The last thing you want is a lawsuit destroying your business. This is why it's important for you to find the right insurance policies to protect your business.
Kansas Economic Data, Regulations And Limits On Commercial Insurance
Whether you're an experienced business owner who has successfully started several companies or you're a novice who is looking to establish your first startup, selecting the right location for your operations is extremely important.
It doesn't matter how stellar the products and services you offer are, if the location where your business is located doesn't offer a favorable climate, it's more than likely you aren't going to succeed.
With that said, if you're thinking about starting a new business or opening a division of your existing company in the state of Kansas, having an understanding of the economic data of the state is crucial.
Additionally, you it's also a good idea to know what type of commercial insurance policies you'll need to invest in if you operate a business in the state. Below, we provide an overview of this information so you can determine if the Sunflower State is the right place for your business endeavor.
Economic Trends For Business Owners In Kansas
In regard to job growth, the state of Kansas exceeds the national average. As of December, 2019, the unemployment rate was 3.2%, reports the Bureau of Labor Statistics; that's 0.3% lower than the national unemployment rate, which was 3.5% at the same time.
The rate has remained relatively steady, as it was 3.3% in December of 2018 and 3.5% in January of 2018; in fact, it has slightly improved. As per economists, the workforce and the economy is considered to improve or at the very least, remain steady, in upcoming years.
The state of Kansas, overall, is considered a good location for business owners; however, there are specific areas that provide better opportunities than others. Generally, these areas are the state's largest metropolitan regions and the suburbs that surround them, including:
- Kansas City
- Overland Park
Not only are these cities seeing an increase in the number of new businesses, but they also have an ample workforce, as well as a higher median income, than other areas in the state.
While there are several industries that thrive in KS, there are particular sectors that tend to do better than others. These include:
- Advanced manufacturing
- Aerospace engineering
- Biosciences and health
- Cattle production
- Food processing
- Logistics and distribution
- Non-fuel industrial minerals
Commercial Insurance Requirements In Kansas
The Kansas Insurance Department regulates insurance in KS. Kansas mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Kansas requires you to have worker's compensation insurance if you hire even one employee on a regular basis unless your business is involved in certain agricultural areas or has a gross annual payroll of less than $20,000. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Kansas also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Warehouse And Storage Insurance
Learn about small business warehouse and storage insurance - which protects storage and warehouse facilities and protects their inventory from property damage from fire and weather, vandalism and theft and liability coverage as well.
The purpose of your operation is to store & secure and other businesses' property, your also have to protect your own. Warehouse and storage commercial property insurance, you can protect your buildings, their contents and other people belongings, and other structures from damage due to fire, weather, smoke, theft, and other causes of loss.
Warehouse business property insurance protects your assets, including office equipment, computers, furniture, tools, and equipment.
And Like other warehouses, you may also need warehousemen legal liability insurance. Warehouse legal liability insurance, which should be carried by every 3rd party warehousing company, says that the facility or plant is responsible for the safe storage of your goods and products - and they must provide "reasonable care" to your goods while under their care.
Warehouse legal liability coverage is special because it protects the physical products and goods that belong to someone else, under the storage facility's care, custody and control.
Warehouses should also have a commercial general liability insurance policy. CGL protects against third-party bodily injury & property damage and the legal costs associated with defending against lawsuits.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Contractors' Equipment, Valuable Papers and Records, Warehouse Operators' Legal Liability, General Liability, Employee Benefits, Umbrella, Hired and Non-Owned Auto and Workers Compensation
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Goods in Transit, Cyberliability, Employment-related Practices, Environmental Impairment, Business Automobile Liability and Physical Damage, Stop Gap Liability and U.S. Longshore and Harbor Workers Coverage
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Also find Kansasa insurance agents & brokers and learn about Kansas small business insurance requirements for general liability, business property, commercial auto & workers compensation including KS business insurance costs. Call us (620) 205-2115.