Warehouse legal liability insurance is necessary for warehouse storage operations in the event that goods left in their care wind up lost, stolen or damaged. It helps cover a business as a bailee, an individual or business entity entrusted with the property of another. Any direct physical loss or damage to property that happens during storage, cross-docking, packaging, labeling or any other services provided by the bailee will be covered under your Orlando warehouse legal liability policy.
Safety is an important factor
Warehouse owners are exposed to all types of risks. Operating a safe facility can greatly reduce the odds of a loss occurring. Common issues resulting in lost or damaged items in storage include the risk of a fire, flooding during extreme weather or from something as simple as a busted pipe or water main, the ever-present threat of theft, which could easily result in a loss or damage of third-party owned materials stored in these facilities.
A warehouse owner assumes responsibility for the materials they store for others and they do so for a fee. By charging a fee they are legally responsible. This is no longer providing services as a favor. So now, if your facility experiences a loss, the third party, having proved that you failed to exercise due care over their possessions, is entitled to compensation.
You must protect yourself against potential liability with proper Orlando warehouse legal liability insurance coverage. The bigger the size of your warehouse, the more materials that can be stored, therefore creating increasing risk.
If you are found negligent in your duties and this results in damage to someone else’s property then your insurance will provide some protection. Damages may be limited by a term in the warehouse receipt or storage agreement which may limit the amount of liability in case of loss or damage, setting forth a specific liability per article or item, or value per unit of weight, beyond which the warehouse owner shall not be liable. This can occur if the contract doesn’t detail the value of what is placed in the storage facility, which is the only way to properly determine damages in the event of a loss.