Warehouse Insurance: Legal Liability, Cost, Quotes & More

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Commercial warehouse insurance is a business insurance policy designed to protect warehouse business owners, employees, and the products they store. Warehouse insurance coverage typically includes general liability insurance coverage, workers compensation, commercial property insurance, warehouse stock insurance, and even warehouse keepers insurance to protect against employee negligence. 

When businesses trust a logistics company or a warehouse with their products, they want to ensure that everything is kept safe and that there is no possibility of them losing their investment. This is why insuring your warehouse is crucial. In fact, most businesses won’t even consider using your business until they have the assurance that their investment is safe and secure within your walls. 

Below, we’ll discuss some of the most common types of warehouse insurance that you’ll need to consider for your business and why you might need them. Then, we’ll give you a brief overview of what to expect as far as costs go and review a few of the top warehouse insurance companies on the market. Get ready to store away some information! 

Common Types of Warehouse Insurance That You May Need

On the surface, running a warehouse may seem like an easy business. You just have to buy a big building, install some shelves, and then hire some workers, right? 

Running a warehouse business is actually a bit more complex than that. As a warehouse business, you’ll likely be responsible for dealing with other businesses’ products, which means that there’s a lot of financial liability that you’ll be on the line for if you or your employees make any mistakes. This is why insurance for warehouse storage businesses is so important. 

Without proper warehouse business insurance coverage, then you could be left on the line for tens or even hundreds of thousands of dollars worth of products if a pallet is dropped, a negligent employee crashes a forklift into a shelf, or somebody forgets to lock the door and products are stolen. 

Many different things could go wrong inside a commercial warehouse, so we’ll take a few minutes to address the various types of warehouse insurance you’ll need to look into. 

Warehouse Liability Insurance

Warehouse general liability insurance is the most basic type of warehouse insurance and is designed to cover a number of generalized claims that could come from customers, vendors, or even your own employees. For example, if a vendor is parked out front and your forklift operator crashes into their car, your warehouse general liability insurance policy would cover the costs. 

Read more about commercial general liability insurance

Warehouse Building Insurance

Warehouses are large structures and are often very expensive. In addition to insuring the property within your walls, you’ll also want to insure the walls themselves. If you own the warehouse and the property it’s on, then warehouse property insurance will ensure that your investment is protected against anything that could possibly happen to it. This includes (but isn’t limited to):

• Fire damage. 

• Flood damage. 

• Hail damage. 

• Hurricanes/Tornados. 

• Vandalism. 

• Structural collapse. 

• ...and more. 

Warehouse to Warehouse Insurance

If you own multiple warehouses and plan on moving goods between the warehouses, you’ll want to ensure that the goods are insured during their transit from one location to the next. Often, the trucking and logistics companies that handle transportation will have their own form of inventory insurance, but it’s never a bad idea to have your own coverage as a backup in case the trucking company is unable to cover the costs of a claim completely. 

Warehouseman Legal Liability Coverage

Often referred to as warehouse keepers liability insurance, this type of insurance covers you and your business against employee negligence, resulting in damage or destruction of products. For example, if your employee drops a pallet of goods, leaves refrigerated goods out in the open, or otherwise damages goods, then you won’t be financially liable for replacing them out of pocket. 

Warehouse Legal Liability Insurance

Warehouse legal liability coverage is very similar to the warehouse keepers liability insurance, but it covers a wider range of incidents, including personal injury. For example, if a visitor comes to your warehouse and a forklift backs into them and breaks their leg, your legal liability insurance policy would ensure that the claim and any legal fees are paid for. 

Warehouse Inventory Insurance

Last but not least, you’ll need insurance for goods in warehouse storage. This type of coverage protects you and your business from any damage that happens to inventory that’s outside of your control. Damage could come from severe weather, vandalism, or theft. Sometimes referred to as warehouse contents insurance, this type of coverage ensures that you and your business won’t be financially liable if products are lost or damaged. Your warehouse inventory is sometimes covered within your general liability insurance and other types of insurance for warehouses, so be sure to pay attention to that.

Warehouse Insurance Cost

So, how much does warehouse insurance cost? Providing an exact number is difficult because one warehouse can differ significantly from the next. Some warehouses may just be small operations that store paper goods or small products such as soaps and candles, while others may be the size of a football field and store high-value electronics, heavy equipment and auto parts. 

However, to help you create an average budget, we’ve researched and cross-referenced consumer and policyholder data to show you the average warehouse insurance cost that you can expect to pay. Depending on the size and type of your operation, you may only need two or three of these coverages; or you may need all of them. 

While the average warehouse liability insurance cost is $93 per month or $1,106 per year for a $1m general liability insurance coverage, below, we’ve included the warehouse insurance rates of each type of warehouse insurance coverage individually. We’ve also totaled the amounts so you have an idea of what you’d pay for a comprehensive umbrella warehouse insurance policy as well. Check it out! 

Of course, keep in mind that these are just average warehouse insurance rates. The rates that you’ll actually pay may differ considerably, depending on the types of products that you’re storing, how many employees you have, the size of your warehouse business operation, the city your warehouse is located in, and more. 

Best Warehouse Insurance Companies

Now that you’ve had a chance to take a look at all of your different options for warehouse insurance coverage let’s take a few minutes to review some of the best warehouse insurance companies on the market. 

We’ve included a brief overview of the company, some notable pros and cons, and our rating. Additionally, we’ve also included the average cost of a comprehensive insurance policy that includes property insurance, general liability coverage, legal liability coverage, inventory insurance, warehouse-to-warehouse coverage, and workers’ compensation. 

Check it out! 

AXA Warehouse Insurance

AXA is a British-based multinational insurance firm that specializes in providing comprehensive commercial insurance policies for mid to large-sized businesses. From comprehensive workers’ compensation plans to high-limit inventory insurance, warehouse-to-warehouse transportation coverage, and general/legal liability coverage, AXA provides it all. 

Although their rates aren’t the cheapest on the market, their comprehensive umbrella policies are some of the most inclusive in the industry. 

Pros:

• AXA specializes in commercial insurance policies. 

• Comprehensive umbrella-style policies that cover all of your warehousing needs. 

Cons:

• Policies can be more expensive than average. 

• The insurer’s main office is located in Britain, which means claims handling may take a bit longer than average. 

Best For: Large commercial warehouses and logistic trucking businesses. 

Average Warehouse Liability Insurance Cost: $94 per month. 

Insuranks Rating: 4/5

State Farm Warehouse Insurance

State Farm is the largest insurance provider in the United States and has been around since the early-1920s, making it one of the oldest insurance companies in the country. Although most people think of State Farm as an auto insurer, they also provide large-scale comprehensive commercial business insurance policies for distribution and warehousing companies. 

Whether you just need a basic BOP (business owners policy) or comprehensive workers’ comp coverage, State Farm has you covered with competitive rates and great customer service. 

Pros:

• As the nation’s largest insurer, they have agents available 24/7 for claims. 

• Some of the best customer service ratings in the industry. 

• Purchase an umbrella policy or build your policy as you need it. 

Cons:

• Handling claims can be a tedious process. 

Best For: Small to mid-sized warehouses that don’t anticipate making many claims. 

Average Warehouse Liability Insurance Cost: $81 per month. 

Insuranks Rating: 4.5/5

Geico Warehouse Insurance

Government Employees Insurance Co., or Geico, is the nation’s second-largest insurance company and provides a wide range of both personal and commercial insurance policies that can be customized to fit any business, small or large. Geico also happens to have some of the more agreeable pricing and premium rates on the market. They can provide workers’ comp, liability coverage, and just about any other type of insurance your small business needs. 

Pros:

• Competitive rates for commercial warehouse insurance. 

• Handle your claims and billing through Geico’s easy-to-use online platform. 

• 24/7 claims support. 

Cons:

• Customer service ratings are just average. 

Best For: Mid-sized commercial warehouses that need a comprehensive workers’ comp policy. 

Average Warehouse Liability Insurance Cost: $79 per month. 

Insuranks Rating: 4.5/5

Get Your Warehouse Insurance Quotes Today!

The best way to save money on your commercial warehouse insurance policy is to make a warehouse insurance quote comparison from different business insurance companies. By comparing warehouse insurance quotes, you’ll get the best deals, since insurers know they have to compete for your business and provide an attractive rate.  

Your desired warehouse insurance policy you need is just a click away! 

Simply click the ‘Get Quotes’ button below right now, enter some basic information on your warehouse business (or potential warehouse business), and you’ll receive customized quotes from some of America's top warehouse insurers. This will allow you to view your rates and coverage limits side-by-side to figure out which offer is best for you and your warehouse business. Do it now!