As a warehouse owner, or a company that deals in storing goods for department stores and other large retail chains, you know you face complex exposure that can lead to legal liability. In many cases, warehousemen’s customers, whether householders or merchants, have their own insurance. Nevertheless, you should insure your potential legal liability because, upon payment of loss by the owner’s insurer, a claim may be made against you in pursuit of rights of subrogation to recoup this payment.
Fortunately, warehousemen’s liability insurance may contain options for certificate coverage to customers. This affords the warehouseman the facility of providing direct insurance to customers in order to protect them in the event of loss, irrespective of the warehouseman’s liability. The policies of insurance that are issued by warehousemen to their customers are usually referred to as “certificates of insurance” or “advices of insurance.”
Warehouse owners thriving here in Florida
There are many warehousing companies operating in the state, and therefore there are many warehouse insurance programs for Orlando, Florida-based businesses, offering protection for warehouses and distribution centers. An insurance agency can assess your specific operations and help you put together a plan designed to close gaps in exposures you may be facing. In addition, the agency will review with you any recommendations made and show you how to improve your coverages while providing you with an affordable and competitive plan.
Liability of Warehouseman as a Bailee
A bailee is defined as a person who by a warehouse receipt or bill of lading or other document acknowledges possession of goods and agrees to deliver them. A bailee’s liability for goods in his possession is precise and stringent. The requirements of a bailment are clearly stated so that when the depositor turns goods over to the custodian to hold, the latter receives and takes custody of the goods and stores them under his direction and control. Access to the goods is under the supervision of the custodian.
The warehouseman is not an insurer of the stored goods. When goods in the custody of a bailee is lost, stolen, damaged or destroyed by any cause, the latter is generally liable in law if the loss or damage was caused or contributed to by his negligence, further demonstrating a need for warehouse legal liability coverage.