Warehouse Insurance

Check the lease. Many leases put buildings insurance on the landlord and recharge the cost, while others make the tenant responsible. Either way, you are likely to need cover for your own stock, contents and income.

At what it would cost to replace, and at its highest level during the year. Where stock rises before busy periods, a seasonal increase or declarations can keep the cover in line.

Only if the policy includes goods held in trust or a similar section. Stock you own and goods you store for others can be treated differently, so check both are covered and on what terms.

Theft following forcible entry is covered on many policies, often subject to security conditions such as a working alarm and locked doors. Unexplained stock shortages are commonly excluded.

It depends on the stock and location, but intruder alarms, key-holding arrangements, secure doors and shutters, CCTV and fencing come up often. Higher-value stock can mean stricter conditions.

If a fire or flood stops the operation, income can stop while costs continue. Business interruption can cover lost income and the extra costs of keeping going, for the indemnity period you choose.

Racking can be insured as part of contents or as its own item. Collapse caused by overloading, poor installation or lack of inspection can be excluded, so keep inspection records.

Forklifts can be covered as plant on the property policy. Some are also treated as vehicles when used on public roads, so check how yours are used and insured.

Deterioration of stock cover can pay for chilled or frozen goods spoiled by a breakdown or power failure. Insurers can ask for temperature alarms and maintenance records.

If you employ staff, employers’ liability is normally needed. Warehouse work involves lifting, forklifts and working at height, so insurers can ask about training and safety.

Many warehouse policies include it, covering injury or damage to visitors, delivery drivers and others. Check the limit, especially if customers ask for a particular figure in their contracts.

It can. Combustible, flammable or hazardous goods raise the fire risk, so insurers may set conditions, charge more or decline. Always declare what you store.

Some warehouse policies can add it, and others need a separate policy for goods on the road. Check how your deliveries and collections are covered.

Yes, though cover and conditions change once a building is empty. Inspections and extra security can apply, or separate unoccupied cover may be needed until a new occupier moves in.

Look beyond the price to the stock and building cover, goods held for customers, theft conditions, business interruption, liability, equipment cover and the excess you would pay on a claim.