Storage Facility and Commercial Warehouse Insurance is essential
Storage and distribution facilities require adequate machinery and stock insurance to remain financially protected. Warehouses and storage areas are prone to fires, thefts and vandalism. Warehouses are also high risk factors for injuries and fatalities. The warehouse sector saw over 7,000 injuries annually and ranks as the third most common sector for fatal injuries. Substantial public liability and employers’ liability is essential for business owners.
What is included in Warehouse Insurance?
Commercial Combined Business Insurance is essential for warehouse owners.
- Buildings and Contents insurance – Ensure the protection of the infrastructure on your premises, as well as stock with buildings and contents insurance. Insurance limits need to be updated regularly to be certain it covers the structures and the rebuild costs. The policy should also cover replacement of all assets following a theft or fire. Stock will be included within content cover, and will include all your equipment and tools, classed as assets, present on the premises and owned by the business. An accurate valuation of these assets is crucial to avoid underinsurance.
- Employers’ liability – This legal requirement covers business owners if any member of staff falls or is injured at work. Warehouses are high risk environments for workers, employers’ liability limits need to cover compensation payments and legal fees.
- Public liability – Protect against third-party slips and trips, as well as property damage due to negligence. Effective public liability insurance provides the peace of mind that your business is protect in the event of an injury at your warehouse. Any accident arm to someone else’s belongings often falls under a public liability policy.
- Business interruption – Business interruption insurance gives you the financial backing to help get your business back on its feet again after a disaster. This policy covers an intangible loss in trade, designed to support a business for it’s lost profit as well as expenses.
Warehouse insurance from Romero Insurance Brokers is involved within a commercial combined business insurance policy. Tailored to your business, the limits and terms are specified to ensure your business is fully covered and will not be left underinsured or exposed.
Key considerations your broker will ask you when building your warehouse insurance policy
- Accurate Stock Valuations – The value of stock can fluctuate greatly. It is imperative businesses increase their insurance to the highest possible value of accumulated stock, as not to risk underinsurance.
- Security – CCTV surveillance is mandatory and will help in the event of a claim. Having someone on site 24/7 will also benefit managing your risk level, as well as a wired alarm system.
- Rebuild cost – The value of your warehouse should include the rebuild cost of the building in the event of a fire. Furthermore, business interruption should take into account the rebuild time, which would be a minimum of 12 months.
Why are warehouses high risk for insurance companies?
Stallard Kane have published a detailed review of warehouse risks and incidents. There are a plethora of risks present at warehouses and storage facilities. The combination of vehicle movement, manual handling, and fire risks inevitably poses dangerous working environment. Shockingly, 1300 people are involved in forklift-related accidents in the UK every year.
Stallard Kane has listed the main risks present at warehouses, as well as guidance on how to manage them.
The primary risks concerning warehouses include:
Falls and slips – 31% of workplace injuries involve trips or falls, such as slips on spills or uneven surfaces.
Poor manual handling – 30% workplace injuries are caused by manual handling, whether that’s poor lifting techniques and repetitive motions.
Forklift and vehicle injuries – 25% of workplace injuries are caused by vehicle misuse or accidents.
Objects falling – 10% of fatalities in the workplace occur because of a storage unit collapsing or a heavy object falling on a worker.
Other – vehicle collisions, distractions, stress, hazardous items, all pose serious and manageable risks
How to manage warehouse risks
Stallard Kane have listed the best risk management procedures business owners can action to reduce the risks posed to warehouses:
Segregate walkways –Ensure vehicle traffic and worker walkways are segregates, helping to reduce risk of injury. Also provide a two-way system for vehicles and forklifts, to reduce the likelihood of collisions.
Effective operational control – Action routine inspections, and have strong housekeeping standards enforced.
Training – Provide manual handling training and ensure anyone using forklift truck has the adequate certificate with refresher training.
PPE and Clothing – Regular inspect and replace equipment, provide safe footwear and hi-vis clothing for workers, and control access to areas of higher safety risk.
Warehouse Insurance with Romero Insurance
Romero Insurance Brokers promises to do our very best to protect your warehouse, your storage facilities and your warehouse workers. We provide a plethora of guidance around risk assessment and management protocols to help demonstrate your due diligence.
For more information on insurance from Romero Insurance, get in touch to talk to a representative.