In the warehouse industry, a legally-enforceable bailment is created, requiring certain liability insurance to cover loss. If you are searching for warehouseman liability insurance, look for a plan that addresses your specific warehouse’s risks.
Because they offer a certain type of service, warehouses face some legal requirements that other industries do not. That is, warehouses operate by storing items owned by somebody else. In doing so, these businesses face both a contractual and general legal requirement to protect these goods. In legal terms, a bailment is created. This requires that the warehouse take precautions to protect the goods in their care and to cover any loss.
Many things can go wrong in a warehouse. Fire, theft, and accidents can damage or ruin goods. Because of this, warehouses must carry a comprehensive liability insurance policy. Warehouseman liability can only be mitigated with coverage that is tailored both to the industry and to the specific warehouse. For adequate coverage, an insurer should survey the warehouse and analyze its specific liability needs. Coverage that works for one warehouse might be woefully inadequate at another.
Since warehouses must satisfy the terms of a legally-binding bailment, it is important they have the right coverage to mitigate the potential for loss of other’s goods. Picking a policy tailored to a specific warehouse is the only way to accomplish this.