Warehouse insurance has different varieties, and even policies with the same title may provide very different levels of protection.

Generally, some warehouse insurance is advisable whenever a courier is providing storage services.

Here are some types of insurance but DO NOT provide adequate protection:

• Property insurance: covers your own property, but not your customers'. Even with some "property of others" coverage, your protection is limited by the much exclusion found on every property policy.

• General liability policies: exclude property in your care, custody or control, not to mention warehouses.

• Customer's insurance: may pay them, but their insurance company has the right to sue you for the full loss.

• Contracts with your customers that limit your responsibility are vulnerable to legal challenge.

Two Types of Policies

Warehousemans' Legal Liability:

However, GOODS ARE NOT INSURED BY THE WAREHOUSEMAN AGAINST LOSS OR INJURY HOWEVER CAUSED.

The warehouseman's legal liability insurance is not coverage on the depositor's goods.

Bailees' Customers policy:

It preserves customers' goodwill by covering stored property for loss or damage regardless of your legal liability.

It's coverage for legal liability resulting from damage or destruction of the bailor's property while under the bailee's temporary care, custody, and control, including property on or in transit to and from the bailee's premises.

The insurance is in effect when the bailee issues a receipt to the bailor for the item. Coverage excludes property belonging to the insured bailee and loss due to vermin and insects.

Of course, couriers should expect to pay a higher price for this expanded protection.