Warehouse operators are exposed to the risks of fire, theft and damage of third-party owned cargo stored in their facilities. What’s more, you have a legal liability for cargo loss or damage while in your care, custody or control. In fact, under the United States Uniform Commercial Code (UCC), when you create a bailment situation you legally assume liabilities.
A bailment describes the legal relationship where items or personal property is transferred from one person to another. The person that subsequently has possession of the property at-hand does not have total ownership. These items are typically only used or stored for a period of time and then returned to the rightful owner.
Why is this important? If a facility experiences a loss and a customer’s goods were damaged in the process, the warehouse owner can be held liable for failure to exercise care when handling the possessions. This can be the case when it comes to unexpected theft, fires, floods, loss of power, or missing inventory. Warehouse Legal Liability Insurance is designed specifically for these situations.
Understanding Warehouse Legal Liability Insurance
Warehouse Legal Liability insurance will defend your company against claims and pay settlements rendered against your company per the policy terms. But not all warehouse legal liability policies are the same from one insurance company to another and require the expertise of a professional that understands bailment liability. At Roanoke, our staff will analyze your specific exposures to determine what you need. What’s more, we can combine this coverage with motor truck cargo, marine cargo and property and liability coverages.
When it comes to justifying warehouse legal liability costs for insurance plans, it’s important to understand that high-quality insurance plans will be tailored to the type of protection your warehouse needs. That means you aren’t paying for insurance costs that don’t relate to your business, but instead you are paying to protect what’s most important to you, your company.
Warehouse legal liability policies are not boilerplate, and your best option to find the right coverage is to partner with a professional that understands bailment liability. Because the trigger is liability, legal defense is often required before you’ll know if you’re covered, and your policy can be designed to cover the costs to defend the company against claims and pay settlements rendered against the company based on the policy terms. However, in some cases, legal defense coverage is included but only covers a percentage of the policy’s full insurance limit. Debris removal is another cost that you’ll often have to manage as a warehouse operator. This represents the cost to have damaged property contained, removed from the storage premise, and properly disposed of. A warehouse legal liability policy can be crafted to cover this cost.
Roanoke: Solutions That Go the Distance
Roanoke understands the intricacies of Cargo insurance and Transportation Liability for logistics providers, and is strategically positioned to guide you through this complex process. Find out how we can provide you with the insurance programs you need to be properly protected. Please contact us at 1-800-ROANOKE or complete the Contact form located above.
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