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Warehouse And Wholesale Insurance: What Is Commercial Combined Insurance?

Running a warehouse or wholesale business comes with its own set of risks that you need to make sure you’re protected from. Having the right insurance in place is crucial to protect your business from unexpected events. However, with the different types of insurance out there, it can be difficult to understand which policy your business needs and what it actually covers.

Having the right cover in place will make sure that your business is protected from the financial repercussions that could come from running a warehouse/wholesale business. Accidents can happen to anyone, and If you own this type of business you will know that there are many risks that you will come across day to day that could be detrimental to your operations if you do not have the appropriate insurance cover in place. That’s where we come in. At East Yorkshire Insurance Brokers, we can help arrange the cover that your business needs, so you can get peace of mind knowing you’re financially protected in the result of an unfortunate incident occurring.

So, if you are wondering what insurance you need then you’re in luck. We have put together this blog on warehouse and wholesale insurance, and why you need it in place, so you can get the coverage you need. Don’t let unforeseen events cause your business to suffer and get the right cover today.

What Is Warehouse Insurance?

Warehouse insurance is basically a policy that encompasses the covers you need as a warehouse/wholesale business owner. This could include anything from the building itself to stock and equipment, to any liability claims that could be made against you as a result of your warehouse activities. This type of insurance is crucial for warehouse owners, as it provides coverage for the risks that are unique to the industry you’re in.

If you’re worried about potential legal claims, warehouse insurance can act as a safety net against the unexpected. Every business is different, but if you’re a warehouse/wholesaler, you need wholesale insurance to protect your business from financial losses. By having warehouse insurance in place if unfortunate events disrupt your business operations, you can relax knowing you’re financially covered. Wholesale insurance lets you stay prepared for the unexpected.

Why Do You Need Warehouse Insurance?

If you run a warehousing business you will know the multiple risks you face, from fire and theft to damaged equipment and injury claims. If you don’t have the right warehouse insurance in place and an incident does occur, it could result in significant financial loss. By having the right warehouse insurance coverage, you can ensure that your operations can continue to run smoothly, protecting your business from unforeseen events that could otherwise disrupt or damage it.

Warehouse

What Does Insurance For Warehouses Cover?

Having insurance for warehouses basically covers your business from the potential risks that are involved in running a company in this industry. Whether that’s covering potential liabilities or protecting your physical assets, there are a range of cover options that are designed to meet the specific needs of warehousing and wholesale businesses. Here are the types of cover included in a standard warehouse insurance policy:

Warehouse stock insurance

Warehouses are known for dealing with a lot of expensive stock, and since your business will rely heavily on your inventory, if something were to happen to it then you won’t be able to trade for a while. This means that warehouse stock insurance is arguably the most crucial type of coverage for this business, as it will protect your inventory against the costs of risks such as fire, flood, theft or accidental damage. If your warehouse holds large volumes of wholesale goods then having warehouse stock insurance in place will ensure that you won’t suffer from significant financial loss if your stock is damaged or destroyed. 

One thing to note is that certain policies may exclude cover for stock that is not stored at least 6 inches off the floor in the warehouse to mitigate the risk of damage from flooding or water leakage. It’s important that you always review your policy requirements to make sure that your storage complies.

Warehouse contents insurance

While your stock insurance will cover your inventory, warehouse contents insurance will cover other assets on the premises that are vital to running your operations. If equipment such as computers or other office equipment are damaged, this could disrupt your business activities and be costly to replace, so having warehouse contents insurance in place will save you from the financial worry if such instances occur. Not only that but warehouse contents insurance may also cover goods that aren’t part of your stock but you’re temporarily storing them or they’re awaiting shipment, therefore this cover can give you peace of mind that important assets are protected against risks.

Warehouse building insurance

When you run a warehouse or wholesale business the building is one of the most important investments as this is where all your inventory is stored, therefore any damage to the property will not only be costly to repair but also halt your business operations. Warehouse building insurance covers the physical structure of the warehouse in the event of damage from fire, storms, floods or other natural disasters. This means that any repairs or rebuilding costs will be covered without the financial worry.

Machinery and equipment cover

Warehouses often use machinery such as forklifts or conveyor belts which can be extremely costly to repair, and can even result in downtime while it’s getting fixed which normal stock and contents insurance won’t cover. Having machinery and equipment cover in place will protect you from the expenses that can come from accidental damage or theft to your machinery so you can address these issues quickly and efficiently without having to worry about the financial repercussions.

Business interruption warehouse insurance

Unexpected events can happen to any business, and if your warehouse suffers from a fire, flood or even theft or damage to machinery that you rely on, your operations may have to shut down temporarily while the issue is resolved. This can result in your finances taking a hit as you’ll be unable to trade during this time. Business interruption insurance for warehouses is important as it covers the costs during downtime, for example, wages, utilities, rent and insurance etc. so you can ensure that your business survives during disruptions. Some businesses can’t afford being inactive for long periods of time, and this could even result in shutting down all together, therefore having this cover in place can make sure that your business stays afloat during these difficult times. 

Goods in transit

Many warehouses regularly send goods, but the risk they become damaged, lost or even stolen in transit could be extremely costly for your business. Goods in transit cover ensures that your products are protected against damage or loss due to accidents, theft or adverse weather conditions during transportation.  It’s important to note that the insurance provided by haulage contractors is often limited to a set value, such as RHA 2024. This means their coverage may not fully compensate for the true value of your goods, making additional goods in transit cover essential for safeguarding your business.

Warehouse liability insurance

Since warehouses are exposed to a range of risks that can result in third party claims, having warehouse liability insurance is essential. In case of legal disputes, claims for damages, or compensation costs arising from injury or property damage related to your warehouse operations, warehouse liability insurance provides protection. Here are the types of warehouse liability insurance you need if you run this type of business:

A man packing a box in a warehouse

Product liability

One of the warehouse insurance coverage you should definitely consider is product liability. Since warehouses deal with a lot of inventory then this cover will protect you if claims are made against you from the products you store, sell or distribute. If your warehouse repackages items and one of your products is faulty, causes injury or property damage then you will be held responsible over the manufacturer and can even result in claims made against you. This could be extremely costly for your business, therefore having product liability in place will cover your legal costs.

Public liability

When dealing with the public whether that’s customers, suppliers or even people visiting your warehouse, if they are injured or their property is damaged while on your premises you could be liable. Accidents can happen to anyone, but this is especially true in warehouses where there is an increased risk of slips, trips and accidents. If this occurs on your premises then it could lead to a costly lawsuit. Having public liability insurance in place will cover the legal fees if your warehouse is found at fault. This warehouse insurance coverage not only protects your finances but your business’s reputation.

Employers liability

Did you know that employers liability insurance is a legal requirement in the UK if you have employees? If an employee is injured or becomes ill due to the work they are doing, then you as their employer could be liable. Warehouses can be hazardous environments, especially with risks that come with heavy lifting, machinery operation and even handling dangerous goods. With these risks, employers liability will cover compensation claims, medical expenses and even legal costs that may come from workplace injuries or illnesses. 

What Are The Risks Warehouse Insurance Covers?

When it comes to warehouse businesses there are a wide range of risks that could potentially lead to significant financial loss or even disruptions to operations. Having warehouse insurance coverage in place will make sure that you’re protected from the costly repercussions that can come from these risks. Here are some of the risks that warehouses are prone to:

  • Fire

One of the risks that could be devastating to warehouses is a fire. Unfortunately, warehouses are prone to fire hazards as they hold large amounts of stock, materials and electrical equipment. Having building insurance will cover the costs of damage to the property as well as rebuilding costs which could be financially crippling if you don’t have cover in place. Not only that but stock insurance will also cover the cost of replacing your inventory if it becomes damaged during a fire, giving you peace of mind that you are protected.

  • Flood

Warehouses also have the risk of flooding, which could not only damage the building itself but your inventory. Building insurance will cover the costs of repairing any water damage to the premises which could be extremely costly without cover in place. Floods can also damage your inventory and machinery, therefore having stock and equipment cover in place will make sure that you are able to replace or repair your inventory or machinery if a flood causes damage.

  • Theft

Warehouses are targets for theft, especially if they hold expensive inventory. If your warehouse suffers from a break in, this can not only result in the loss of stock, but also potential damage to your property. Stock insurance will offer financial protection in the result of your inventory getting stolen, so you don’t need to worry about the costs of replacement. Not only that but having building insurance will cover the costs of repairing any damage to your premises; it’s important that you check the policy documents for minimum security conditions, so you can make sure that you comply with the policy and that you will be covered in the result of a break in.

  • Accidental damage

When it comes to working in a warehouse, there is a risk of accidental damage whether that’s from a forklift colliding with shelving units or stock being dropped. Equipment and machinery cover will protect you from the cost of repairing expensive machinery so you don’t need to worry about the financial repercussions. Accidents can happen anywhere, so you need to make sure you’re protected.

  • Public liability claims

Warehouses are prone to slips, trips and accidents and if a third party such as a customer, supplier or even someone visiting is injured or their property is damaged on your premises, then your business could be held liable which could result in some serious financial repercussions. Having public liability insurance in place will cover the legal costs if such claims are made against you.

  • Employee injuries

Warehouse employees face numerous risks on the job whether that’s from heavy lifting or operating machinery, therefore there is the risk of injury or even getting ill because of the work they do. Employers liability insurance will ensure that you’re protected from the legal costs if any claims are made against you, from medical fees to compensation claims. 

What Is Commercial Combined Insurance?

So if you’re a wholesaler you’re probably wondering what is commercial combined insurance? 

Commercial combined insurance is basically a policy that encompasses all the covers that wholesalers, warehouses, manufacturers etc. need in one simple package. This saves you the trouble of purchasing separate policies for multiple risks, commercial combined insurance is more convenient including the covers you need under one package. 

Commercial combined could include stock, building and liability covers, ensuring you’re protected from all angles. So if you’re looking for warehouse insurance, then commercial combined insurance is the policy you’ll most likely need.

People in a warehouse

Contact East Yorkshire Insurance Brokers For Warehouse Insurance

If you run a warehouse or wholesale business and need insurance, East Yorkshire Insurance Brokers are here to help! We have experience in sorting commercial combined cover for various businesses, so whether you’re a warehouse, wholesaler or manufacturer, we can arrange a commercial combined policy that covers you for the risks you will face when running your company. Our team are personable and industry experts, and will strive to give you the advice you need so you get peace of mind that you’re financially protected in the result of any unforeseen events. Get in touch with EYIB and get the insurance you need today!

Warehouse Insurance FAQs

What insurance do warehouses need?

If you own a warehouse you will need stock insurance to cover the cost of replacing your inventory if it gets damaged, whether that’s accidental or from natural disasters. If you have employees you will also need to make sure you have employers’ liability, as if your employees become injured or get sick from the work they do, you could be liable. A commercial combined policy can include the essential covers that you need in one package, taking the stress away from having to arrange multiple separate policies.

Does warehouse insurance cover employee injuries?

Yes, you can include employers liability cover within your commercial combined policy. If you have employees, then it’s important to note that employers liability is a legal requirement in the UK. 

Do I need separate policies for stock and building insurance?

No, with commercial combined insurance you can receive both stock and building insurance in one package policy, so you don’t need to worry about taking out separate insurance for multiple covers.

Does a commercial combined policy cover theft?

Your commercial combined policy/warehouse insurance will include stock insurance that covers your inventory from theft as well as other risks, such as accidental damage as well as damage from fire, flood etc.

What is warehousing insurance?

Warehouse insurance or commercial combined insurance includes cover to protect you and your business from the financial repercussions of liability claims, damage to your stock and the aftermath of natural disasters like flood or fires. Your policy will include multiple covers so your business is protected from unforeseen events.