Insurance of goods in warehouses

Insurance of goods in a warehouse, insurance of warehouse property, warehouse insurance

Insurance of warehouse property in circulation goes by many names, which do not always clearly reflect the legal nature of this type of insurance or correctly describe what it protects. Insurance of goods in a warehouse should not be confused with comprehensive warehouse insurance and property insurance, because it concerns only the goods stored in the warehouse, not the warehouse as a property complex. This is the first, but not the only, mistake made when agreeing a warehouse goods insurance contract. The growth of trade turnover in Kazakhstan prompts businesses to consider concluding a warehouse property insurance contract or a warehouse goods insurance contract. A warehouse goods insurance contract, popular as it is, has certain subtleties and nuances that require special attention and legal expertise; alongside the contract there are insurance terms and rules that must be studied carefully before starting work on insuring goods in a warehouse. If the information provided has not fully answered your questions, see other materials.

Why insure warehouse property

Let us divide those who wish to insure a warehouse into several categories:

1. warehouse owners – who lease the warehouse to owners of goods but bear the obligation to keep the warehouse property entrusted to them safe. A warehouse goods insurance contract will also be of interest to this category, since under the storage contract it is the warehouse owners who are liable to the tenants for the safety of the property and, in the event of theft, fire or a burst water or sewer pipe, will have to cover all losses caused to the owner of the goods.
2. owners of goods – not every company has its own properly equipped warehouse premises, while goods are an investment and sometimes the main source of profit.

Warehouse goods insurance contract

Concluding a warehouse goods insurance contract does not differ much in its stages from any other insurance contract:

1. completing the application form for warehouse goods insurance – The first nuance here is determining the sum insured, i.e. the value of the goods: since stock is not constant but changes regularly, specialists recommend stating the maximum possible value of goods held in the warehouse.
2. agreeing the insurance terms and the warehouse goods insurance contract
3. signing the contract and paying the insurance premium

When studying the terms of warehouse goods insurance, pay particular attention to the exclusions from insured events, the cases that are not insurable and to which insurance cover will not extend, the insured risks included in the cover for which the insurance company undertakes to pay, and the deductible.

How much does warehouse goods insurance cost

The cost of a warehouse goods insurance contract depends on a number of factors:

1. storage conditions in the warehouse (security, alarm system, condition of fire hydrants, distance from fire stations);
2. the nature of the goods;
3. the packaging of the goods;
4. storage period and turnover of the goods;
5. the quality and methods of stock accounting and dispatch in the warehouse.

Given the large number of factors affecting the cost, we will of course not quote an exact rate; we simply recommend contacting the insurance brokers and agents listed in the association's registry for a correct and competent calculation.