Warehouse Insurance Expert Guide
Ensure your stock and machinery is covered, as well as your liabilities - by a Willis Towers Watson Network Broker
Get indemnity™ warehouse cover
A guide to insuring stock, buildings, equipment and liabilities when operating a warehouse
The below expert guide explains how warehouse insurance can offer comprehensive protection against damage or loss of stock, buildings and equipment, in addition to covering employers, public and product liabilities.
As a WTW Network broker, we work on behalf of a wide range of UK companies that operate warehouses in an industrial or commercial setting. Speak to an expert broker by calling 0345 625 0711.
What you need to know about warehouse insurance
As a company which stores and distributes products you face a variety of different exposures that have the potential to incur significant losses. Purchasing insurance to protect your interests is sound business planning.
Obviously, the type of products you store and distribute will have a significant impact on your insurance. Liability claims from distributing products and operating a warehouse which could cause injury or property damage should be insured.
Not to mention the potential exposure if the warehouse, machinery, or the property you store was to be damaged in a fire, storm, flood, or theft. Commercial combined insurance can offer peace of mind that your business is protected.
What is warehouse insurance?
Warehouse insurance is a package product that offers protection for liability claims made against the company, in addition to cover for damage, loss or theft of stock and equipment stored at the premises.
Public, product, and employers’ liability, in addition to buildings insurance, property damage, stock, plant and equipment, office contents, and business interruption, are the most commonly purchased insurance covers.
Whether you distribute and store higher risk products that have an increased risk to cause injury, or increased exposure to fire or theft. At get indemnity we can identify the most appropriate warehouse cover meet your needs.
Why is warehouse insurance important for commercial and industrial businesses?
Industrial and commercial businesses which store and distribute goods from warehouses on behalf of their customers can be significantly exposure to a fire, storm, flood or theft which causes serious financial harm.
With a large amount of goods and products stored together, the loss of your warehouse premises and inventory can have a devastating impact on a company’s cash flow and financial reserves.
Prudent companies will seek to sufficiently insure against a range of perils which could impact the future viability of the business. A tailored warehouse insurance solution designed to meet your needs is an important consideration.
Guide to which warehouse insurance covers your business activities need
The guide below explains which covers are most commonly purchased by companies which operate warehouses and how they can offer financial protection against a variety of insurable events.
What is stock insurance?
Stock insurance covers damage by unforeseen events to the raw materials or inventory which the company owns or is under their duty of care. Warehouse insurance can be provided for a variety of insured perils, such as fire, storm, flood and theft. Floating stock insurance can be arranged for multiple premises.
What is buildings insurance?
Building insurance should be arranged if you own your warehouse. The type of construction, and heating methods will impact insurers perception of your risk. Some warehouses come equipped with special sprinkler leakage systems and this will need to be disclosed to insurers.
What is machinery and equipment cover?
Machinery and equipment cover can be arranged to ensure protection against damage or theft of any fork lifts, delivery vehicles or automated machinery within your warehouse.
What is business interruption?
Business interruption can offer protection against an interruption to the business following an insured loss under the property section of the policy which results in reduced earnings on a gross profit or revenue basis.
What is product and public and liability?
Product and public liability insurance can offer protection against your liabilities arising from visitors or customers using your warehouse, or the liabilities from distributing the products on a wholesale or retail basis.
What is employers liability?
The compulsory employers liability insurance must be purchased to meet your legal requirements to protect your staff that work in the warehouse and office setting. Goods stored on racking or at height can pose an increased risk. A standard £10,000,000 will be offered, but can be increased to £25,000,000.
What is goods in transit cover?
Goods in transit cover is designed to protect the loss or damage of goods whilst in transit. Offering peace of mind should your materials, goods or cargo be lost, stolen or damaged in transit cover is provided.
What insurable risks are wholesalers, manufactures, and warehouses exposed to?
Wholesalers, manufactures, and warehouses are exposed to traditional liability and property exposes, in addition to seasonal fluctuations of stock, an increased dependence on high value equipment, as well as the responsibility for safeguarding their employees, visitors and customers.
When discussing your insurance renewal, we recommend you to detail: 1) nature of processes undertaken, especially if they may differ from the trade norms; 2) nature of equipment present and the extent of any automation; and 3) actual goods sold and the source of any imports or destinations of any exports.
> Automated Warehouses
> Contract Warehouses
> Public Warehouses
> Private Warehouses
> Bonded Warehouses
What other insurances are typically purchased by warehouses and wholesalers?
Whether you have a large warehouse or a small lock up unit, at get indemnity we can arrange warehousing insurance and stock insurance that is tailored to your specific needs.
Motor Fleet
Designed to provide warehouse and wholesale businesses protection and control, motor fleet insurance can provide simplify and save you money on covering your fleet operations. Quotes for fleet car insurance, fleet van insurance, and fleet haulage insurance are available.
Marine Cargo
Provides cover against loss or damage to goods whilst being transported by road, rail, sea or air. The cover can also be extended to protect goods whilst held in third-party storage. Any company that imports or exports are likely to have a need for marine cargo insurance.
D&O Insurance
Companies within the warehouse sector are facing increasingly stringent regulations. As a consequence, directors and officers insurance is more commonly purchased to protect the company’s board and senior executives for decisions they make on behalf of the company, as they can be held personally liable for their actions.
Machinery Cover
Machinery breakdown insurance provides the company with accident insurance for machine breakdown, covering the cost of repair or replacement of machinery, such as forklift trucks and handling equipment.
Trade Credit
Designed to cover the failure of your customers paying their trade credit debts because of that customer becoming insolvent or failing to pay within agreed terms and conditions.