What Happens When You Assume Possession of Someone Elses Goods?

Orlando warehouse legal liability insurance coverage

When storing goods or belongings of others, warehouse owners are exposed to many risks, including fire, flood, theft and other causes of damage to third-party owned materials stored in their facilities. With the acceptance of someone elses property comes the duty to exercise proper care in protection of that property from damage. The company or individual in possession of the property (the bailee) is responsible to exercise proper care.


You are offered certain protection in the event that if your facility were to experience a loss, the client would then have to prove that you failed to exercise due care over their possessions. The purpose of obtaining warehouse liability insurance is to provide you with protection in the event that negligence on your part does result in damage to a clients property. Regardless of the size of your warehouse, you have a potential liability issue that is covered with the proper Orlando warehouse legal liability insurance coverage.


Certain limitations may exist when a loss occurs


Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage, and setting forth a specific liability per article or item, or value per unit of weight, beyond which, as the warehouse owner, you shall not be liable. Therefore any agreed upon contract must detail the value of any items placed in your storage facility that will help determine damages in the event of a loss.


It may be a bit shortsighted on your part to rely on a standard general liability policy for restitution since a commercial general liability policy has an exclusion for property in the named insureds care, custody and control. Even though the policy covers damage to the property of others, this exclusion removes coverage that doesnt meet the conditions of the contract.


Depending on your type of operations, there are various policies that will offer coverage for many of the exposures you face. Note that an Orlando warehouse legal liability insurance policy covers the exposure of holding others people property and goods for storage under some form of warehouse receipt.