Self Storage Facility Insurance
Running a proper, profitable self-storage facility means acquiring the right insurance. Where other businesses consider insurance an ancillary cost, insurance in the self-storage industry is one of the most important aspects of the business.
Why Self-Storage Facilities Need Comprehensive Insurance Coverage
Self-storage facilities are subject to more hazards than other types of companies. These can include:
- Common forms of damage to your property from storms, fires, vandalism, etc.
- Damage to your customers’ items being stored inside your facility
- Severe weather halting company operations
Beyond these obvious risks, self-storage facilities need protection from lawsuits. Customers’ items can get stolen or damaged. Customers can suffer bodily injury or property damage on the self-storage facility site.
Because customers are free to come and go without much, if any, contact with storage facility personnel, the facility has little influence over a customer’s visit or a storage tenant could fall down and become injured, or a storage unit gate could fall on their car, causing property damage.
Unfortunately, the self-storage facility is liable for these instances. Therefore, comprehensive coverage is vital to ensure protection against expensive lawsuits.
Business Insurance for Self-Storage Facilities
Business insurance for self-storage facilities should include these core insurance types:
- General liability insurance
- Commercial property insurance
- Business income insurance
These three types of coverage work together to cover your self-storage facility from a variety of potential risks.
General Liability Insurance
All businesses, including self-storage facilities, should have general liability insurance to protect them from potential lawsuits. Any business that is open to the public might face lawsuits if someone gets injured or faces property damage.
Without general liability insurance, legal fees can become overwhelming and devastating to your business.
Commercial Property Insurance
Should a severe storm damage the storage facility, commercial property insurance will aid in repairing or replacing the business property.
Property fires are also, unfortunately, common risks. Commercial property insurance covers repairs and replacements of business property in that event, as well.
Business Income Insurance
Unexpected events can cause a self-storage facility to halt business operations. During this time, the business will likely suffer a significant decrease in income. Business income insurance helps cover important payouts that halted income cannot cover.
- Business income insurance replaces lost net income that would have been earned had the covered loss not occurred.
- It pays for necessary continued operating expenses like payroll, rent, and tax payments.
- It can pay for relocation expenses if the facility needs to be set up elsewhere temporarily while the permanent site is repaired.
Self-storage facilities are subject to unexpected loss of income, just like any other business. Without protection during sudden revenue losses, the results can be catastrophic.
Unique Insurance Policies to Consider
Self-storage facilities benefit from other insurance policies as well. In the self-storage industry, unique instances can occur. Having specific coverage will help you navigate these events more effectively.
- Sale and disposal legal liability
- Customer goods liability
- Flood insurance
Consider adding these policies on top of your business insurance bundle.
Sale and Disposal Legal Liability
When a tenant fails to pay their storage fees, the self-storage facility must evict them and dispose of their belongings to rent that storage unit to a new customer.
Sale and disposal legal liability insurance protects self-storage facility owners from disgruntled tenants who file a claim or sue once their belongings have been sold or destroyed.
Customer Goods Liability
In many cases, a tenant’s lease will protect the public storage facility’s owner from liability when damage occurs to the tenant’s belongings. However, when the damage is due to facility negligence, the owner can be held liable.
Customer goods liability insurance can protect self-storage facility owners during the legal process.
Flood insurance is common for homeowners, and it should be common for all types of business owners as well. Flood coverage is not included in other property insurance policies.
Floods are highly destructive, and having a separate flood insurance policy can save a self-storage business from disappearing in the blink of an eye.
Trust Insurance Center Of North Jersey For Self-Storage Facility Insurance Needs
We understand that finding the appropriate insurance policy to meet your unique needs as a self-storage facility owner can be daunting.
Let us help you get the optimal amount of storage unit facility insurance coverage for the right price by working with you to develop a personalized solution for your business risk management needs.
Since 1927, we’ve been serving the needs of New Jersey businesses and families. Give us a call today and experience for yourself why we have a long-standing reputation as an independent agency that cares about you, your business, and the things you value most.
Contact us at 201-525-1100, and we will be glad to help you!