Dealing With Other People’s Wares
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.