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.
| 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.
| 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
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
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
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.
| 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
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.
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
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
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
Workers compensation insurance has no set limits. Payouts depend on which state you’re operating.
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.
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
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
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.
| 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 |
Get all the best quotes from leading providers in a click of a button!
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.
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
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
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
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
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
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
You can find competitive prices from various insurance providers
Compare quotes over the phone
A partner of many reputable insurance companies
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
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
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
Process insurance claims fast
You can manage your insurance policies via their mobile app
They offer worldwide coverage for cold storage facilities insurance
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
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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