How to Protect Your Alberta Warehouse Business
You warehouse goods for your customers and it’s your job to keep them safe and secure.
Protect your Alberta warehouse business with the right warehouse storage business insurance.
Ask your Western Financial Group business insurance expert about warehouse insurance and how it protects your business.
What is your warehouse business?
In Canada, warehouses can be public, private, or bonded and each type of warehouse has different risks.
- Public warehouse: Your services are available to customers who want to rent and accept the warehouse’s terms of storage.
- Private warehouse: They can belong to manufacturers, distributors or stores that handle and distributing their own goods directly to customers or to other storage facilities.
- Bonded warehouse: Imported goods are stored pending the payment of an import duty to Customs. Control of goods in a bonded warehouse is shared by the warehouseman and Customs authorities. The owner of the goods pays duty each time goods are removed from storage.
Tell us about your Alberta warehouse business and your Western business insurance expert will get you the insurance that you need for your warehouse storage business.
Here’s the warehouse insurance you will need:
1. Warehouse insurance (also called warehouseman’s legal liability): A warehouse insurance policy covers physical loss or damage to customers’ property when caused by the warehousing business at specified locations. This type of coverage is subject to designated limits.
In many cases, the warehouse’s customers already have their own insurance on their contents that you are storing. If they do not already have coverage, your warehouse may require the owner of the goods to get Contents In Storage coverage before renting space in your warehouse. This makes it clear to your customer that your warehouse is not the primary insurer of their contents and that it is your customer’s responsibility to have their own insurance.
2. Commercial property insurance: This coverage can help keep you protected from property losses, such as theft, vandalism, fire, and damage to tools or equipment you need to continue operating your warehouse business. You can also add earthquake insurance, sewer backup or flood coverage extensions.
3. Commercial general liability (CGL) insurance: It can cover you against claims for injury or property damage to others arising from your warehouse activities or advertising liability. If you were sued for any of those claims, CGL would cover legal costs to defend a claim against your business in court, as well as costs to cover damages to compensate third parties.
Without commercial liability insurance, you would be responsible for paying any liability costs out of your own pocket.
4. Equipment breakdown insurance: Equipment breakdown Insurance covers you for property damage from the sudden and accidental breakdown of insured equipment that isn’t covered by a standard commercial property policy.
You can insure nearly everything that is mechanical, electrical, electronic or under pressure due to breakdown, including boilers, air conditioning and refrigeration units, electrical panels, computers and security or telephone systems.
5. Cross-border warehousing coverage: As an Alberta company, you may be expanding your warehouse business into the United States. Talk to your Western business insurance expert coverage about being covered on both sides of the border.
6. Trade credit insurance: This type of specialty insurance protects you against customers failing to pay for goods or services provided on a credit basis, usually due to insolvency or lack of funds.
Ask your Western business insurance expert for details about trade credit insurance.
7. Business interruption insurance: You may want to consider adding business interruption insurance to your warehouse insurance package. If there is an insured loss at your warehouse business that is severe enough to stop your business operations, the expenses associated with getting your business running again will be covered.
This type of policy usually covers vandalism, fire, wind, flooding, and other risks. It’s important to understand what your policy specifically covers. Your policy will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work.
8. Commercial vehicle insurance: If you have a business car, truck, or van that you use as part of your warehousing business, it needs commercial coverage as part of your warehouse package.
You’ll need a fleet policy if your warehouse business has 5 or more vehicles.
How much warehouse insurance do I need and how much will it cost?
There isn’t a set price to insure an Alberta warehouse business.
The following factors are usually considered when determining the cost of your warehouse insurance:
- Your location
- Your equipment
- Annual revenues
- Number of employees
- Any past claims
Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Alberta warehouse business the right warehouse insurance package. Our experts are available now to help you navigate the business insurance journey to protect your Alberta business.
