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Under the United States Uniform Commercial Code (UCC), the owner/operator of a warehouse assumes responsibility for any damages of losses to the contents within the structure. Warehouse legal liability insurance will cover the loss of items if the loss is related to the negligence of the warehouse employees. It can also be used to cover any costs the warehouse owner/operator accrues, like settlements with policyholders or defense costs.

For example, employees who were hired to move inventory on or off trucks, or from one space to another, may be careless when loading or unloading items, causing damage to the inventory. If the inventory becomes damaged, it is the “fault” of the warehouse because the employees failed to handle the items with enough care to keep them in good condition. Because this happens more often than most warehouse owners realize, warehouse legal liability insurance can protect the owner in the event of a loss, while still compensating the business whose contents were damaged.

What types of losses are covered?

The losses covered depending on the terms of the policy, which means you could have a named perils or an all-risk policy. Generally, damage should be covered if it is caused by:

  • Negligence
  • Fire
  • Hurricanes
  • Tornados
  • Soot
  • Hail
  • Wind
  • Sinkholes
  • Extreme temperatures related to equipment (such as failing cold storage units)

In some cases, you may need additional coverage for damages related to:

  • Extreme temperatures related to weather
  • Insect or vermin damage
  • Floods
  • Mold or rot
  • Deterioration

As the owner of a warehouse, you need to be prepared for problems that can arise and things that can go wrong. If damage occurs to items that belong to a specific company while those items are in your warehouse, you are responsible for the damage. Having liability insurance means having protection when an issue does arise instead of having to pay out of pocket for the expenses.

If you have warehouse legal liability insurance and you need help filing a claim or fighting a denial, Warhurst Law is here to help. We are fully prepared to help Florida and Alabama clients put up a fight against the insurance company when they have a legitimate claim. If you are interested in receiving legal help, give us a call at 251-207-1296 today or complete the contact form on our website.

 

 

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