If you own a self-storage lot, you might think your insurance needs are fairly straightforward. But consider that your customers trust you with their possessions, from valuable documents to family heirlooms. That means self-storage lot owners face several unique risks, requiring unique insurance solutions.

Why do self-storage lots need insurance?

A customer renting out space in your facility should have their own insurance policy to protect the contents of their storage unit (and, as the owner, you may require it of your customers).

But having self-storage lot insurance protects your business — while giving customers peace of mind, and giving you a competitive advantage. Insurance should be considered part of your overall offering, from high-end security to climate-controlled environments.

What risks do self-storage lot owners face?

Self-storage lots are at risk of fire, water damage, and natural disasters that could damage your property, impact your customers, and temporarily shutter your business. For example, heavy rainfall could cause flooding or water damage inside customers’ storage units. If a customer claims the water damage was caused by negligence on your part — say, that you didn’t make necessary repairs to the roof — then you could be held liable.

There are other liability risks, too, such as slips, trips, and falls. Say a customer slips on a wet floor or trips on uneven pavement and requires emergency medical treatment. That could result in a claim of negligence against your business.

Other liability issues include poor lighting or malfunctioning rollup doors that lead to a bodily injury. It’s important to regularly inspect and service equipment to help prevent accidents — along with making sure you have the right insurance coverage if an accident does happen.

Self-storage lots can also be attractive targets for theft, vandalism, and mischief, especially late at night when the property is deserted. Employee theft can also be an issue. Theft or property damage is bad enough, but if a customer is the victim of criminal activity on your premises, they could claim that your facility provided inadequate security.

Since self-storage units are self-service in nature, there may be no one around when an incident occurs, which makes it more difficult to investigate and document any incidents. That’s why, in addition to commercial general liability (CGL) insurance, it’s also worth investing in video surveillance, alarm systems, secure access controls, and remote monitoring services.

Even if your business isn’t highly technical, you still store personal information about your customers, such as credit card numbers. If your business is the victim of a cyberattack and your customer data is stolen or ransomed, you could face a loss of revenue and stiff regulatory fines — not to mention reputational damage that could be hard to recover from.

And, if you must temporarily shutter your business for any reason — whether to recover from a structure fire or a cyberattack — you’ll also lose the income you’d normally be bringing in.

What type of insurance do self-storage lot owners need?

Self-storage lot insurance can be customized to your unique needs, from the types of items stored in your facility to its location. For example, if your facility is located in an area prone to natural catastrophes, such as tornadoes, then you may want to tailor your policy to reflect that.

Protecting against liability starts with commercial general liability (CGL) insurance, which is designed to protect your business from bodily injury or property damage claims. Commercial property insurance provides coverage for loss or damage to your property from events such as fire, theft, and vandalism.

But insurance for self-storage lots can also be customized to ensure your business has the protection it needs. Some of these options include:

  • Business Interruption: Protects your business from a loss of income in the event of an insured loss.
  • Equipment Breakdown: Protects you against loss to property and revenue resulting from breakdowns to equipment such as air conditioning systems and electrical equipment.
  • Crime: Protects you from employee dishonesty, credit card forgery, and other types of theft by employees and others.
  • Company Vehicles: Protects your commercial vehicles, whether you have just one or a whole fleet.
  • Cyber: Protects you with coverage for data recovery, customer breach communications, and e-commerce threats.

If you already have a policy, it’s a good idea to review it annually with your insurance agent If you’ve made any changes to your property, such as purchasing new equipment or expanding your facility, be sure to let your insurance agent know so your policy reflects your updated replacement costs.

Protect your self-storage lot with insurance

When you find yourself in the worst-case scenario, you don’t want to be left covering all the costs yourself. Our insurance for self-storage lot owners is designed to deal with a wide range of risks. So, whatever your needs, we’ll tailor an insurance solution that fits. Ready to learn more about how Federated Insurance can help your business? Visit our self-storage lot insurance page today.

 

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.