If you are in the business of storing another’s goods, such as owning a shipping yard, you are what is called a “bailee.” Because you have agreed to house goods until they leave your possession, you have agreed to accept responsibility for these goods. It is important you work with bailee liability insurance brokers who are experts in additional coverage you will need in the event something happens to the cargo while it rests in your hands. This is true even if you are dealing with smaller items, such as the clothing in your care if you are a dry cleaner.
Should the goods be damaged in any way, either by your transit of them to and from your storage facility, your handling of them when loading and unloading, a natural event, fire, theft or other disaster, your liability goes beyond the cost of the lost items. Should the disaster occur on your property, you may be responsible for the clean up involved, even though the goods are not technically yours. Should you be sued or have a claim filed against you for the loss, your defense costs might skyrocket beyond your financial means. Bailee liability insurance brokers can secure an extended liability policy to cover the damages and these overhead costs.