Warehouse insurance for your building and your customers' goods
A warehouse carries two kinds of property risk: what you own, and what customers have trusted to your care. We build programs for public and contract warehouses, 3PLs, cold storage and distributors that keep the two straight.
Storage and fulfillment operations
Public and contract warehouses
Storage for many customers under warehouse receipts or storage agreements.
Third-party logistics (3PL)
Receiving, pick-and-pack, kitting and e-commerce fulfillment.
Cold storage
Refrigerated and frozen storage where a power or equipment failure can spoil stock.
Distributors
Wholesalers storing their own inventory and running delivery fleets.
Manufacturers' warehouses
Raw materials and finished goods held near the plant.
Cross-dock and transload
Short-term handling between carriers and modes.
Your property versus your customers' property
Your commercial property policy covers what you own: the building if you own it, racking, forklifts, office contents and your own inventory. Goods you store for others are a different exposure.
Under the Uniform Commercial Code (in Washington, RCW 62A.7-204), a warehouse is liable for loss of or damage to stored goods caused by its failure to exercise the care a reasonably careful person would exercise under similar circumstances. A warehouse receipt or storage agreement can limit the amount of that liability, though the limit does not apply to conversion of goods to the warehouse's own use, and a customer can request a higher declared value in writing, often at a higher storage rate.
Warehouse legal liability coverage responds when you are legally liable for physical loss or damage to customer goods in your care. Because it follows your liability, your contracts drive it: a receipt that limits liability can cap what you owe, while a contract that makes you responsible for all losses, regardless of fault, can leave you owing more than the policy will pay. We review your receipts and storage agreements alongside the policy for that reason.
What a warehouse program can include
Forms, limits and exclusions vary by carrier and policy.
Building and business personal property
The building (if owned), improvements, racking, shelving, office contents and your own inventory.
Business income and extra expense
Lost income and the added cost of operating elsewhere after a covered loss.
Equipment breakdown
Sudden mechanical or electrical failure of refrigeration, conveyors, compressors and electrical systems.
Spoilage
Perishable stock lost to temperature change from breakdown or power interruption, often by endorsement.
Warehouse legal liability
Your legal liability for physical loss or damage to goods stored for others.
Contractual liability review
Liability you accept beyond the legal standard typically must be disclosed to and approved by the underwriter.
General liability
Injuries to visitors and drivers on your dock and damage to others' property.
Workers' compensation
In Washington, most employers obtain workers' comp through the state fund (L&I); we coordinate stop-gap employers' liability where needed.
Umbrella / excess
Additional limits above general liability, auto and employers' liability.
Forklifts and mobile equipment
Inland marine coverage for forklifts, reach trucks and yard equipment.
Commercial auto and cargo
Delivery trucks and the goods they carry in transit.
How a warehouse loss unfolds
Three illustrative examples with round, hypothetical figures.
A fire damages racking and customer goods
An electrical fire in one aisle damages racking, a forklift and pallets stored for three customers. Operations are disrupted for six weeks.
- Customer goods$700,000
- Racking, forklift and building$300,000
- Lost income$200,000
Illustrative example. Real outcomes depend on the facts and your policy terms.
From walkthrough to program
Understand the operation
Building construction and sprinklers, commodities stored, storage heights, values on hand, temperature control and services you provide.
Read the contracts
Warehouse receipts, storage and service agreements, and the liability you accept from each customer.
Approach the market
We present your operation to carriers that write warehousing, logistics and cold storage.
Support the program
Certificates for customers and landlords, value updates as inventory changes, and loss-control resources.
Warehouse insurance questions
Does my property policy cover goods I store for customers?
Usually only in a limited way, if at all. Property policies are built for your own property. Customer goods in your care are typically handled by warehouse legal liability, which responds when you are legally liable for the loss.
Am I liable for every loss in my warehouse?
Not necessarily. Under the UCC, a warehouse is generally liable for loss caused by its failure to use reasonable care. Your contracts can change that, in either direction, which is why we review them.
Can I limit my liability in my warehouse receipt?
The UCC allows a receipt or storage agreement to limit the amount of liability, with exceptions, and lets customers declare a higher value. Have your attorney draft the terms; we'll align the insurance to them.
Should customers insure their own goods?
Many do, and storage agreements often require it. Their property insurer may still pursue you if your negligence caused the loss, so you still need warehouse legal liability.
We are a cold storage operation. What's different?
Spoilage, refrigeration breakdown and power interruption become major exposures. Equipment breakdown, spoilage coverage and alarm monitoring are typically part of the conversation.
Are forklifts covered under my property policy?
Often they are covered better under an inland marine equipment floater, which can follow the equipment and cover perils a property policy may not. We'll review how yours are scheduled.
Get a warehouse insurance quote
Share your building details, commodities, values on hand and a sample storage agreement. We'll come back with options.
Coverage descriptions are general summaries for education. They are not legal, tax or coverage advice, a statement of coverage, an offer or a binder. Scenarios and dollar figures are illustrative examples, not representations about any business. Coverage, limits and eligibility are governed by the terms, conditions and exclusions of the policies issued and are subject to underwriting.