Because of the United States Uniform Commercial Code, it is important that a warehouse owner be vigilant in covering warehouse products with insurance. According to the UCC, any loss or damage to a customer’s goods is the responsibility of the warehouse owner to replace or make reparations for. Warehousing claims of loss or damage could come from fire, theft, structural collapse, flood, mishandling, and much more.
Purchasing Liability Coverage
The costs associated with damage or loss of your customer’s goods will amount to more than just the physical product replacement. Your customer could open a claim for further damages, considering how the loss impacts their own supply chain and operations. There could be lost wages if an employee is injured during the incident that causes the destruction of products stored in your warehouse. The costs of an incident can reach upwards to thousands and millions of dollars in legal fees and settlement payments.
Hitting the Highlights
Many find the cost of quality insurance coverage hard to swallow, but don’t be tempted to just cover the most common or basic liabilities. There are too many expectations and gaps in this coverage to be effective and protective. Meeting with an insurance agent that understands the nature of your warehousing operations will give you insight into which coverage you need.