Warehouse insurance: All you need to know

Warehouse insurance is specialist business insurance that can cover personal injuries, accidental and malicious property damage, fire, flood, total loss, theft of stored goods and more:

Property damage insurance

Property damage insurance covers the cost of repairing damage to the structure of your building (or rebuilding it from scratch). The policy will also usually cover damage to insured contents, fixtures and fittings, and any damage to underground pipes and cables that you’re responsible for. (Such as the mains water pipe).

Loss of licence insurance

Warehouse operators who run a customs bonded warehouse – that is, a secure space which stores goods imported from outside of the UK before they reach their final destination – must have a licence from HMRC to do so. If the licence is withdrawn, it could materially impact the business and the value of the property. Loss of licence insurance covers bonded warehouse operators in the event of forfeiture, suspension, or withdrawal of their premises licence – paying out to replace any loss of gross income, costs incurred while trying to maintain their gross income, and any depreciation in the value of the premises if they can’t get their licence renewed or reinstated.

Money and assault insurance

Money and assault insurance covers you in the event of theft and/or assault to you or an employee. The policy typically protects your property while it is in transit by road, rail, or freight anywhere in Great Britain, Northern Ireland, the Isle of Man, the Channel Islands, and the Republic of Ireland. This includes sea or air transit between these territories. The policy also covers you and your staff for any personal injury they may have suffered during the theft, paying for medical costs, loss of income, legal expenses and ongoing therapy. 

Employee theft insurance

Employee theft insurance covers you in case an employee steals from your business. This includes money or property theft arising from employee fraud or dishonesty, auditor fees incurred while substantiating the amount of loss, and costs for rewriting or amending computer software programs or security codes to prevent recurrent theft.

Employers’ liability insurance

Under the Employers Liability Act of 1969, Employers’ liability insurance (EL) is a legal requirement for most UK employers. EL protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business. EL typically covers the associated legal and compensation costs, and other damages of such events, but it can also cover accidental injury or damage caused by an employee to a third party, like your customers. 

Public liability insurance

Public liability insurance protects you if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or liability insurance, is designed to protect you against third party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your warehouse – whether you’re at fault or not.

Product liability insurance

Product liability insurance (PLI) – also known as ‘product insurance’ – is designed to protect companies, partnerships, sole traders and the self-employed from financial loss in the event that someone is harmed, or property is damaged due to the products that they supply. 

Important tip for warehouse operators: Product liability insurance isn’t only for manufacturers. In the event of an accident, your business could be held liable even if you only stored, distributed or repaired the product.

Commercial legal expenses insurance

Commercial legal expenses insurance covers you in the event that you’re faced with legal costs in connection with your warehouse. The policy will typically pay for legal costs involving issues of property damage, nuisance, or trespass – specifically, the associated legal claims and compensation payouts – and any tax and compliance disputes and investigations you may need help with.

Cyber liability insurance

Cyber liability insurance covers you in the event of a data leak or cyber-attack that could damage your business and reputation. The policy typically protects you from claims against you for data breach, virus transmission, loss of reputation, or breach of intellectual property rights. You may also purchase cover to pay for data-breach expenses, computer system damage costs, lost income, and cyber-crime committed against you, such as telephone hacking or data and money theft.