Warehousing Standards and Understanding Policy Provisions

While having normal business liability insurance coverage is critical, as a reputable warehouse operator you should also be sure to carry warehouse legal liability insurance in Orlando, Florida. Legal liability coverage for warehouse man is a unique type of policy that responds whenever a warehouse operator’s failure to exercise reasonable care in the handling and storage of a customer’s goods results in loss of, or damage to, those goods.

If, for whatever reason, you’re found negligent in the care of a customer’s goods then your insurance carrier makes payment directly to the customer for the loss they’ve incurred. This is the main reason why customers do not wish to be named as an additional insured under the warehouse operator’s warehouse legal liability policy.

Certain exclusions exist within the policy

It is important to note that just about every warehouse legal liability policy excludes liability for loss or damage in instances where the warehouse operator has, of his own accord, agreed to take on a higher degree of risk and responsibility for the care of a customer’s goods beyond what is legally required.

This exclusion is necessary since warehouse legal liability policies are underwritten by insurance carriers on the basis of insuring those risks associated with a warehouse operator’s negligence. If a warehouse operator has agreed to assume greater liability for a customer’s goods, then the risks become much more extensive, far beyond what the insurance carrier may have taken into account when setting a premium for the policy.

When a significant loss or damage to the customer’s goods does occur and is directly attributable to the warehouse operator’s failure to take reasonable care of the customer’s goods, both the warehouse operator and the customer are relying on the warehouse operator’s liability policy to respond to the claim.

It would be considered an unfortunate circumstance if a warehousing service agreement were to contain a provision requiring the warehouse operator to assume liability for a customer’s goods beyond the standard of “reasonable care”. In this instance, such a provision is likely to void the warehouse operator’s warehouse legal liability insurance in Orlando, Florida, thus putting both parties in an unfavorable position regarding reimbursement or restitution.

 

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