Why this review matters
A warehouse may store property owned by many customers under contracts that allocate responsibility differently. The review should identify what is stored, maximum values, handling requirements, receipts, limitations of liability, and operational controls.
Information to prepare
- Customer contracts, warehouse receipts, and liability language
- Maximum customer values by location and season
- Commodity, temperature, handling, and storage requirements
- Racking, sprinklers, forklifts, security, and inventory systems
- Claims history and corrective actions
Decisions to discuss
- Warehouse legal liability limits and valuation
- Property of others and cargo-related coverage
- Temperature change, contamination, and mechanical breakdown terms
- Deductibles, catastrophe accumulation, and contract alignment
Common pitfalls
- Using average values when peak values are much higher
- Failing to review customer contracts
- Mixing incompatible commodities
- Assuming the building policy covers every customer’s goods
Frequently asked questions
What is warehouse legal liability?
It can address the warehouse operator’s legal liability for covered loss or damage to customers’ property in its care, subject to policy terms and contractual responsibilities.
Why do maximum values matter?
Average inventory may hide seasonal peaks or a single customer concentration that could drive the maximum foreseeable loss.
Coverage descriptions are general. Availability, eligibility, limits, exclusions, and policy terms vary. Review actual policy documents and requirements with an appropriate insurance professional.