If your company has business property in a storage unit, you should know how your commercial insurance will apply if that property is damaged.
First, some good news: many commercial property insurance policies cover items damaged while in storage. Note that coverage applies only for specific causes of loss, such as fire or wind; flood damage, for instance, would not be covered.
Now, the bad news: such coverage is likely restricted. For example, property in a storage unit may be covered for a limited dollar amount (e.g., $10,000). Further, such coverage may be available only until the end of the policy’s term. Once the policy renews, coverage might no longer apply unless expressly permitted by the insurance company.
Some storage facilities offer insurance to renters. Read the conditions carefully for limitations, including the possibility that the facility’s policy won’t act as primary coverage and will serve only in excess of your business insurance policy.
