The logistics industry is a complex web of bailments and financial holdings as goods transfer between organizations and companies. That’s why you need warehouseman liability insurance. As a warehouse operator, you have enough to worry about with daily recordkeeping and security. In fact, most of the administrative tasks associated with the business serve the same purpose as insurance.
Bailment situations are unique in that you, as a warehouse provider, legally assume liability for damage to the goods you’re holding. While you probably secure your locations and train your staff to prevent loss, the risk of uncontrollable damage to stock is always there. This can take the form of theft or fire, or just accidents that couldn’t reasonably be predicted or prevented. Regardless of the source, you stand to assume the costs associated with destruction of goods.
Warehouseman liability protections provide a way for you to guard against the risks that are either impossible or impractical to mitigate in other ways. In addition to covering property damaged or lost during storage or processing, typical losses covered under these policies concern:
• Tangible property
• Accounts receivable
• Data of value
• Loss of permanent features of leased real property
This liability insurance is an important addition to your policies and security measures. Make sure to ask tough questions. An unbiased analysis of your operation is the only way to tell where your risks are greatest.