Cold Storage Insurance: Cost & Quotes From $25/mo

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Cold storage is fundamental for businesses such as restaurants and pharmacies. Restaurants hire cold storage facilities to keep expensive ingredients fresh. On the other hand, pharmacies  work with cold storage facilities for the safekeeping of medicines. 

Accidents may happen and compromise the quality of items stored in your cold storage, which can lead to devastating losses. In other instances, exposure to extreme temperatures or equipment malfunction can lead to work-related accidents.

Costly claims and lawsuits due to unforeseen accidents can endanger your business. To ensure your business is immune from such destructive events, you must secure cold storage insurance. This article discusses the intrinsic policies you should have for your business, their costs, add-ons, and coverage limits.

General Liability Insurance for Cold Storage Facilities

CoverWallet  NEXT (Best) Thimble Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $300,000/$1,000,000 $300,000 $100,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No No Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0


General liability insurance is an indispensable policy every business must have. When operating your cold storage, a wide array of accidents can happen. A customer can trip in your business premises and sustain a hand injury. In such a scenario, your insurance will pay for all the hospital bills and medication costs.


What Incidents Does General Liability Insurance for Cold Storage Facilities Cover?

  •  Any slip-and-fall accidents that occur in your cold storage facilities

  •  If your operations lead to property damage

  • Your food or medicine causes illness or poisoning

  • Your facility is accused of slander, defamation, or libel

Add-Ons to Your General Liability Insurance for Cold Storage Facilities

  • HNOA coverage–Covers third-party medical expenses and property damage if a hired or borrowed vehicle causes an accident

  • Customer property coverage–Reimburses the customer if his or her property got damaged while under your care, custody, and control

Coverage Limits of General Liability Insurance for Cold Storage Facilities

You need sufficient coverage that will pay for all damages, such as property damage or bodily injury. In most cases, an insurer will offer you a limit of $1 million to $5 million for each occurrence. Regarding the aggregate limit for that policy term, you can get $2 million to $5 million.


Product Liability Insurance for Cold Storage Facilities 

In your cold storage facility, you are tasked to safely store perishable items such as vaccines, food, and medicines. But these products may get contaminated or spoiled, which may cause harm to your customers. In such instances, your customers can sue you for injuries suffered. Product liability comes in handy to pay for all the costs associated with the lawsuits.


What Are the Typical Incidents Covered by This Cold Storage Insurance?

  • If your products get contaminated and cause injury or illness to your customers

  • Equipment failure occurs and your items, such as meats or vegetables, spoil

  • Claims of efficacy or the diminished quality of your goods

  • Your cold storage facility does not properly label its products, leading to illnesses or allergic reactions

  • Packaging or labeling errors

Add-Ons to Public Liability Insurance for Cold Storage Facilities

  • Product recall coverage–This add-on will cover all the costs of replacing and recalling products due to unforeseen accidents such as spoilage or contamination

  • Equipment breakdown coverage–Your cold storage facility relies on specialized equipment to preserve perishable items. This add-on is integral and will cover replacement or repair costs in the event of electrical or mechanical equipment breakdown

Coverage Limits of Public Liability Insurance for Cold Storage Facilities

An insurance carrier is willing to pay a limit of $1 million to $2 million for each occurrence and $2 million to $4 million aggregate.

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Commercial Property Insurance for Cold Storage Facilities

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $22,000 $25,000/$500,000 $25,000 $60,000
Outdoor signs Excluded $2,500 Excluded Excluded Excluded
Accounts receivable  Excluded Excluded $5,000/10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded
Lock and keys  Excluded $2,500 Excluded Excluded Excluded
Business interruption floater Excluded Included Included Included Excluded
Equipment breakdown floater Excluded Included Excluded Excluded Excluded
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Included Excluded


Commercial property insurance covers all the assets and property of your cold storage facility. It covers the physical buildings and the contents of the buildings, such as equipment and inventory. This insurance will cover your facility against common perils such as:

  • Fire

  • Theft

  • Vandalism

  •  Storms

  • Earthquakes

  • Water damage

What Typical Situations is This Insurance Policy Applicable to?

  • A fire breaks out in your facility and causes devastating damage to your building, inventory, or equipment

  • Theft or vandalism that results in damage to your inventory, building, or equipment

  •  A storm damages the roof of your facility

Add-Ons to Commercial Property Insurance for Cold Storage Facilities

  • Flood insurance–This is a valuable add-on if you believe your facility is situated in an area with a high risk of flooding. You can include this coverage if your base commercial property insurance excludes flooding events

  • Earthquake insurance–If you are in earthquake-prone regions, you add this add-on to cover any property damage after the occurrence of a tremor

Coverage Limits for Commercial Property Insurance for Cold Storage Facilities

When determining the coverage limit sufficient for your cold storage facility, an insurance carrier must set a monetary value for your physical assets. But in most instances, you will receive a limit of $10,000 to $500,000.




Business Owner’s Policy for Cold Storage Facilities

CoverWallet Thimble (Best) NEXT  Hiscox The Hartford
General liability aggregate limit  $2,000,000 $2,000,000 $2,000,000 $300,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $500,000 $260,000 $25,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


When you have so many standalone policies, managing them conveniently can be difficult. It also becomes expensive to pay for each policy separately. The business owner’s policy (BOP) is a cost-effective and comprehensive insurance policy integrating two or more policies. With this bundled-up policy, you can seamlessly pay insurance premiums and enjoy special discounts. Policies contained in the BOP can include:

  • General liability insurance

  • Commercial property insurance

  •  Business interruption insurance

In Which Situations is This Insurance Policy Needed?

  • Damage to your assets

  • Bodily injury to customers or visitors

  • Personal injury sustained by third parties

  • Claims of slander or libel

  • Compensation for lost income that occurs due to unforeseen events

Add-Ons to Your BOP Policy for Cold Storage Facilities

  • Transit coverage–If your cold storage facility transports products to customers, you must have transit coverage. This add-on will protect against any loss that occurs when you are transporting your goods

  • Cyber liability coverage–If your cold storage facility relies on technology for data storage, you need this add-on to cover any data compromisation that may occur

Coverage Limits of Your BOP for Cold Storage Facilities

For the BOP policy, you can receive $500,000 to $2 million as a limit for the general liability and $10,000 to $500,000 for damages to your business assets.


Tools and Equipment Insurance for Cold Storage Facilities 

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


This is a crucial insurance policy for your cold storage facility as it covers tools and equipment you use for day-to-day operations. Some covered items include cooling units, pallet jacks, refrigeration systems, and conveyors. It will safeguard your business from financial losses that may arise due to the following perils:

  • Theft

  • Vandalism

  • Unintentional damage

  •  Fire

Coverage Limits for Tools and Equipment Insurance for Cold Storage Facilities

An insurance provider will pay $5,000 to $50,000. These figures are just estimates and can either be lower or higher depending on the estimated value of your tools and equipment.


Workers’ Compensation Insurance for Cold Storage Facilities 

In a cold storage facility, there are many hazards, such as exposure to cold, oxygen-deficient environments, manual handling of items, or slips that can lead to occupational-related injuries and illnesses. To shield your employees from such unfortunate accidents, you need to have worker’s compensation insurance. This policy will offer your employees the following:

  • Coverage for hospital bills

  • Rehabilitation benefits

  •  Lost income benefits

  • Death benefits

What Incidents Can This Insurance Policy Cover?

  • Your employee falls or slips on the icy surfaces

  • Injury to your employees caused by equipment or machine

  • Exposure to the freezing temperature leads to respiratory problems

Add-Ons to Worker’s Compensation Insurance for Cold Storage Facilities

  • Employer’s liability coverage–Sometimes, your workers can claim that an accident occurred due to your mistakes or negligence. This add-on will pay all associated costs

Coverage Limits for Workers’ Compensation Insurance for Cold Storage Facilities

Workers compensation insurance has no set limits. Payouts depend on which state you’re operating. 


Commercial Auto Insurance for Cold Storage Facilities

Commercial auto insurance protects vehicles that you use in the daily operation of your cold storage facilities. It can cover liabilities, physical damages, or bodily injury resulting from your commercial vehicles. This policy also covers your drivers and all the passengers in the car.


What Are the Critical Components of This Insurance Policy?

  • Auto liability coverage–Safeguards your cold storage facility if your commercial vehicles cause an accident that leads to bodily injury or property damage

  • Collision coverage–If your car is involved in a collision accident, this coverage will pay for the costs of repairing or replacing your commercial vehicle

  • Comprehensive coverage–Covers other incidents such as theft or vandalism. It primarily focuses on all non-collision events

  • Uninsured motorist–If you get into an accident with a motorist who does not have proper insurance coverage, this policy will pay for all the damages

  • Underinsured motorist–If the driver responsible for the accident has low insurance coverage, this coverage will pay you

  • Medical payment coverage–After involvement in an accident, passengers and drivers can sustain injuries; this coverage will settle all hospital bills

What Are the Common Add-Ons to Commercial Auto Insurance for a Cold Storage Facility?

  • Rental reimbursement coverage–If you are forced to rent a vehicle while you await your commercial vehicle to be repaired after an accident, this add-on will compensate you for the rental fees

  • Hired/non-owned auto coverage–If you rent or lease vehicles periodically, this add-on will cover such vehicles in the event of accidents

Coverage Limits of Commercial Auto Insurance for Cold Storage Facilities

The auto liability coverage of commercial auto insurance offers a minimum of $25,000 per injury, $50,000 per accident, and $15,000 per property damage. 

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Cold Storage Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $29 $348 $0-$500
Excess liability insurance $33 $396 $500-$1,000
Commercial property insurance $82 $984 $1,000-$2,000
Business owner’s policy $100 $1,200 $1,500
Tools and equipment insurance $36 $432 $500-$1,000
Commercial auto insurance $50 $600 $500-$1,000
Workers compensation insurance $105 $1,260 $2,500-$5,000


The average cold storage insurance cost is $29 per month or $348 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:

Cost per Month Cost per Year Best for
NEXT $15 $180 Best overall; Fastest general liability insurance for cold storage facilities
The Hartford $18 $216 Comparing cold storage insurance quotes online
CoverWallet $21 $252 Cold storage facilities that need coverage from a company with excellent financial capabilities
Tivly $23 $276 Cold storage facilities looking for providers who can offer competitive prices
Thimble $25 $300 Cold storage facility owners looking for flexible coverage options
Hiscox $27 $324 Cold storage facilities that need worldwide coverage insurance options

Compare Cheap Cold Storage Insurance Quotes Online

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Best Cold Storage Insurance Companies

Here are the companies to consider. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance. 


NEXT Cold Storage Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for cold storage facilities 

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any 

NEXT is a 100% virtual company heavily invested in the digital platform. They offer the best deals for small businesses. You can get adequate coverage if you are looking for several policies for your cold storage facility. They offer policies such as BOP, commercial auto insurance, tools, and equipment insurance, among others.

Best for: Best overall; Fastest general liability insurance for cold storage facilities

Average cost: $15 per month

Our rating: 10/10


CoverWallet Cold Storage Insurance

Pros 

  • A reputable insurance brokerage that connects you to various carriers

  • You can get budget-friendly rates from the multiple providers available

  • They have hired agents who come in handy to assist you in choosing and managing your policies

Cons

  • They don’t underwrite their policies but rely on third parties

CoverWallet partners with many insurance companies. They help you to connect with an ideal provider who can offer you the best deals. When you apply for cold storage facility insurance, you can use their comparison tool to check the rates offered by different providers.

Best for: Comparing cold storage insurance quotes online 

Average cost: $18 per month

Our rating: 10/10


The Hartford Cold Storage Insurance

Pros

  • Excellent customer support in the process of the insurance application

  • They are known to offer significant benefits on their insurance products

  • You can include multiple add-ons on your primary insurance policy

Cons

  • Limited add-ons to general liability insurance

The Hartford has been offering insurance products for the last 212 years. They have obtained a more extensive clientele base due to their timely settling of claims. They have an excellent rating of A+ from AM Best. This company will offer specialized coverage for your cold storage facility.

Best for: Cold storage facilities that need coverage from a company with excellent financial capabilities

Average cost: $21 per month

Our rating: 10/10


Tivly Cold Storage Insurance

Pros

  • You can find competitive prices from various insurance providers

  • Compare quotes over the phone

  • A partner of many reputable insurance companies

Cons

  • You have to call to get a quote

Tivly is an insurance agency where you can find companies that provide the best cold storage facilities insurance deals. You can find competitive prices on this insurance marketplace. They offer multiple insurance policies, such as general liability insurance, workers’ compensation insurance, or cyber liability insurance. Call now to compare quotes over the phone. 

Best for: Cold storage facilities looking for providers who can offer competitive prices

Average cost: $23 per month

Our rating: 9/10


Thimble Cold Storage Insurance

Pros

  • Offers short-term coverage options for cold storage facilities

  • Their policies are flexible and can be adjusted depending on your specific needs

  • They offer customers instant insurance quotes

Cons

  •  It is impossible to get phone assistance from their customer service team

Thimble is an insurance company that provides flexible coverage to cold storage facilities. If you are working on a short-term project, they will provide adequate coverage at a very affordable rate. They offer many products, such as workers’ compensation insurance, spoilage insurance, contamination insurance, tools, and equipment insurance.

Best for: Cold storage facility owners looking for flexible coverage options

Average cost: $25 per month

Our rating: 9/10


Hiscox Cold Storage Insurance

Pros

  • Process insurance claims fast

  • You can manage your insurance policies via their mobile app

  • They offer worldwide coverage for cold storage facilities insurance

Cons

  • It does not operate in some states, such as Alaska

Hiscox has been operational for over a century. This company offers diversified insurance policies to cover your cold storage facility well. One outstanding feature is their worldwide coverage option that covers beyond your operational geographical region.

Best for: Cold storage facilities that need worldwide coverage insurance options

Average cost: $27 per month

Our rating: 9/10

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