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.Â
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.
| 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.
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
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
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.
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.
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
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
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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| 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
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
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
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.
