The gap
Many cargo policies limit coverage at terminals or exclude storage beyond a set number of days. Fire, water, theft and mold in a warehouse can damage many customers' goods at once.
Warehouse legal liability
Warehouse legal liability, sometimes called warehouseman's legal liability, covers the mover's legal liability for customers' goods while stored. Limits are typically set per location and per occurrence.
- Sprinklers and alarm monitoring
- Vault construction and stacking
- Pest and moisture control
- Inventory records for each customer
Storage in transit versus permanent storage
Storage in transit is a short pause during an interstate move, for example when a new home is not ready. The goods stay part of the move and the mover's liability under the bill of lading continues. When storage in transit ends and goods convert to permanent storage, the relationship usually changes to a warehouse agreement, and liability and insurance can change with it.
Tell your agent which kinds of storage you offer, how long goods usually stay and whether customers sign a separate warehouse receipt. That information shapes the coverage form and the limits.
What underwriters ask about a warehouse
Insurers price storage risk by building and protection. Expect questions about construction, sprinkler and alarm systems, how vaults are stacked, how far stored goods sit from heat sources and loading docks, and whether you share the building with other tenants. Claims history for water damage, theft and pests matters as well.
Coverage pieces that often go together
- Warehouse legal liability for customers' goods you hold
- Property insurance for your own building, racking and equipment
- Motor truck cargo for goods while on your trucks
- General liability for injuries to visitors and customers at the facility
Frequently asked questions
Does my building insurance cover customers' goods?
Usually not. Property insurance on the building covers your property, not the liability for goods you hold for others.
Is a customer's own homeowners policy involved?
Sometimes. A customer's homeowners or renters policy may cover belongings away from home in limited ways. It does not replace the mover's warehouse coverage.