Two "MUST HAVES" for Self-Storage Operators
Here is an informative article to Self-Storage Operators regarding insurance LINK
"It’s no secret that the self-storage industry has exploded in recent years. According to Neighbor, the leading peer-to-peer storage operator in the United States, spending on new self-storage facility construction totaled nearly $5 billion in the U.S. in 2018."
Drew wanted to highlight the TWO "MUST HAVES" from the article.
"1. Customer Goods Legal Liability
While most self-storage operators imagine they’re protected from any exposure relating to the customer goods stored in their facility, this isn’t always true. Litigation is an ever-present threat. Imagine this scenario: a few telltale drops of water on the floor indicate that self-storage building roof repairs are needed. But a few days before they are scheduled to be done, a storm tears through the area, causing roof damage and extensive water damage to customer goods. In this scenario, it can be argued that owner negligence left the business exposed, and the resulting legal costs and financial impact can be substantial.
Customer goods legal liability coverage can help limit this risk. Leshner says, “We’ve noticed that a lot of smaller regional carriers offer BOP policies with limited property and GL coverages that don’t offer the correct coverage specific to self-storage. A lot of operators and retail agents don’t even know about this important add-on, and our program can offer up to $1,000,000 for this type of coverage.”
2. Sale and Disposal Liability A good way to think about sale and disposal liability coverage is that it’s essentially errors and omissions coverage for self-storage operators. It provides protection against claims of improperly taking, selling, using or destroying the goods of another party (i.e., “conversion”), most often involving the sale of the contents of a delinquent tenant’s unit.
Leshner explains, “Sometimes people simply make mistakes. If you auction off several units for non-payment by accident due to a clerical error—and we’re talking on average between $5,000 to $10,000 worth of goods in a typical unit—that’s a lot of money that needs to come out of pocket.”
Drew is well versed in this coverage and would be happy to talk with anyone that has more questions to the insurance needs.