Why You Need Warehouse Legal Liability Insurance Coverage
Warehouse operators have a major responsible to their clients who trust them to store their goods and merchandise until it reaches its final destination. This opens them up to a slew of exposures that could result in claims due to any number of hazards they might face. In the news, we hear about warehouse fires and probably never even consider the impact this has.
In addition, theft or damage to cargo and merchandise owned by third parties contained in your facilities can be quite costly. Anytime you’re found negligent in the care of your customer’s goods, by having warehouse legal liability insurance, your carrier pays the customer for any losses incurred. Warehouse legal liability insurance provides specialized coverage for commercial distribution warehouses and logistics companies. It’s the best available coverage for this industry.
Coverage under these policies varies
Depending on your set of circumstances, you should speak to a qualified insurer to determine your specific policy needs, since not all policies provide the same protections. The agent you choose should have a thorough understanding of bailment liability and how it works. As the company or proprietor having a legal responsibility for cargo in your care that is either lost or damaged, you cannot afford to lack the necessary protection your business needs in the event of a lawsuit and subsequent settlement. You will often find that you have liability concerns in matters such as these, and this means that you have legally assumed these liabilities and must provide the necessary compensation to the injured party. There may also be additional costs that affect your bottom line.
For example, if you experience a fire and have damaged goods and internal damages to your facility this can result in an added cost. Debris removal is also an important thing to consider when choosing between insurance options since the warehouse operator or bailee may incur yet another costly expenditure. There is a price to pay to have damaged property removed from the storage premises, which must be properly disposed of as well.
You should fully understand all contractual agreements between you and your clients related to your warehousing services, including any limitations on recovery associated with the warehousing agreement. This includes keeping copies of all bills of lading, warehouse receipts and invoices issued for the goods being stored on the premises.Having warehouse legal liability insurance in place will help when any problems occur during storage of clients merchandise in your care.