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Whether youre new to the industry or have been working in it for 40 years, you know the importance of warehouse insurance. Insurance coverage is your safety net whenever something goes wrong at your facility. Mistakes in your policy can end up costing your business hundreds of thousands. Here are some of the most common mistakes warehouse owners make.
Not Shopping Around
Insurance companies arent all the same. Many agencies do not offer all the services you need to protect your business. Others might have complete coverage, but at double the price of their competitors. Always compare policies before selecting one.
Not Thinking Long-Term
If youre planning for business growth, why not apply that to every part of your business? Selecting an insurance agency that doesnt have the resources to handle your growth just means frustration down the line.
Not Choosing One Company
This may sound obvious, but its a bad idea to mix and match policies from different companies. While shopping around can be beneficial, partial policies generally create gaps in coverage akin to having no insurance at all.
Avoiding these mistakes will greatly benefit your company. If you do a little research, you should be able to find the right warehouse insurance company. An agency with experience in your industry can help you select a policy that fits the needs of your business perfectly.
There’s a unique problem in the warehousing business, brought about by the fact that you’re usually dealing with items you don’t own. What if damage or loss occurs while the items are in your custody? The answer is, more often than not, you’re liable for it, which means you need warehouseman’s legal liability insurance.
An Additional Measure
Just because it’s not your merchandise doesn’t mean you don’t have any responsibility. In fact, you might consider yourself at a greater financial risk for a loss since you don’t have any legal right in normal circumstances to liquidate the goods. That means that, even with your best security and safety protocols in place, you usually only stand to lose from having items in your warehouse. However, having items in your warehouse is also the way your business generates revenue.
Fill the Gaps
The answer to this seemingly impossible conundrum is getting the right warehouseman’s legal liability insurance policy to cover any potential risks and mitigate losses should they occur. Unless you have the cash lying around to cover any problems that arise, the right policy could potentially save your business in the case of an emergency.
Work with an expert in the business to make sure you have enough coverage. It takes a good deal of experience insuring warehouses to get it right, so vet all your options carefully.