One of the most overlooked coverage’s on self storage/mini storage companies insurance policies, is also one of the most crucial.
Customer Goods and Sale/Disposal Liability
This coverage is a must for self storage companies to have on their insurance policy. While most proper insurance packages will include this coverage, it is important to consider having higher limits as it may be a great return on your investment.
Recently, we were working with a client that felt they only needed $100K for both customer goods and sale/disposal coverage. We provided two proposals, $1m VS $100K, the difference was less than $100. That is 10X the coverage for only $100!
So, what does it cover?
Definitions courtesy of StorageFirst:
Customers’ goods legal liability coverage provides protection for an insured when they are legally liable (or alleged to have been liable) for damage to storage customers’ goods including property stored in the open. For mobile self-storage operations, coverage extends to legal liability for customers’ goods off premises or in transit. Defense costs are outside of the limit. No deductible applies to traditional self-storage accounts. A $1,000 deductible applies to mobile self-storage and records/document storage operations.
Sale and disposal liability protects an insured for claims arising from negligent acts in connection with the lock-out, sale, removal or disposal of customers’ property. Typically, these claims occur when an insured sells the goods of a customer who is delinquent with regard to payment. The cost of defense is included. A $1,000 deductible per customer applies.