Warehouseman liability insurance is a necessary protection for your business if you hold good belonging to other companies or individuals. It may also be a feature that some entities require in your operations before they consider doing business with you. There are a few reasons for this reluctance to deal with uninsured warehouses, not the least of which being there are some legal issues surrounding this particular business that makes it important to be insured.
When you accept goods to hold them for another company, you create a bailment situation. This means that you’re liable, usually for the entire cost of the merchandise, should anything happen to it. This often includes theft, incompetence and disasters. That means that you’ll be paying out to your clients in addition to covering any losses you have to your own facilities. Warehouseman liability insurance covers losses to other people’s property so you don’t have to.
Doing Business Right
Most shipping or logistics organizations see their insurance policies as a necessary cost of doing business safely. That means that they expect their warehouses to carry adequate insurance: they don’t want any weak points in the supply chain. Making sure you have warehouseman liability coverage from a reputable provider can help get you the credibility you need to access this higher echelon of business partners.