3PL & Warehouse Insurance

As a warehouse provider, you have various goods from various customers. You are responsible for those goods as long as they are in your care, custody and control. But, naturally, there are some things that are out of your control. For those losses that are completely out of a provider’s control, how do you protect yourself? Even more so, if your negligence as a provider is proven to be the cause of a customer’s goods being damaged, how do you indemnify them, and maintain their trust in your business?

What is Warehouse Legal Liability?

A warehouse provider is obligated to safely secure, store, and transport a seller’s goods with reasonable care. A warehouse liability insurance policy pays out to cover damages caused by a provider’s negligence and the “lack of reasonable care” in the warehouse.

What does this policy cover?

Under this policy, you are still liable for all other damages to your client’s goods which are not caused by the warehouse’s negligence, such as flood, fire, windstorms, etc. If no negligence can be proven, the customer is primarily responsible and liable for the damages to their goods.

When should I have this?

You should have a Warehouse Legal Liability Policy anytime you have care, custody and control of other people’s products. If you are prepping, packing, labeling or shipping other people’s products at your location, you need to protect your business with this policy.