Insurance coverages that every self storage facility should have.
As a self storage facility owner, the main service you provide is storage in your units. Because your property itself is an essential part of your business, you need to have commercial property insurance that protects your units and offices in the event they are damaged by covered events. Another important coverage to have is general liability insurance, which offers coverage for incidents involving damage to the property of others or injuries sustained on your property. In addition, business income insurance offers important protection if your business is unable to operate normally or forced to close down for a certain period of time.
How you can better protect your self storage facility.
Even more coverage options exist to further expand the protections your business has in place. For example, theft is a concern of every self storage facility owner. Crime insurance protects your business from the financial impact of criminal acts against your business. Also, if your facility offers climate-controlled storage, having equipment breakdown insurance may help cover the cost of repairs or replacement of the equipment, as well as damages and losses to property, should the equipment malfunction. Sales and disposal liability insurance covers your business from lawsuits regarding the sale or disposal of a tenant’s property due to non-payment.
What are the risks of owning and operating a self storage facility?
Your business relies on renting out your storage units. If your storage units suffered damaged in a fire, would you be able to recover without insurance? Your tenants count on you to keep their valuables safe while stored on your property, are you prepared for a lawsuit if someone’s property is stolen under your watch? What if you have a tenant who fails to pay their rental fees, but when your employees dispose of their property, it turns out that they threw out the wrong tenant’s property by mistake? Your business could be held liable and you would need to pay for replacement costs and pay any legal fees should they file a lawsuit. All of these risks are things you need to consider when choosing a self storage facility insurance policy.
The business side of a self storage facility.
While your business might not be like most in the traditional sense, there are still general business coverages that you’ll need to consider. For example, if you take payments online or store sensitive tenant information on your computers, your business could face severe financial consequences if that information is hacked and stolen. Cyber liability insurance would protect your business in those instances. A commercial umbrella insurance policy can offer extra protection and kick in should your coverage limit be reached on your underlying insurance policy when claiming a loss. Also, if you hire employees, you’ll need coverages such as employment practice liability for discrimination lawsuits, workers’ compensation for injuries while on the job, and employee dishonesty liability insurance should an employee steal from one of your tenants.
Do you need specialized insurance for your self storage facility? Contact us to discuss your options.
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