Ask an Underwriter: Warehouse Receipts and Legal Liability Q&A
As an insurance underwriter for the moving and storage industry, I get asked a lot of questions about warehouse receipts, so I thought it would be worthwhile to dive into the details of this legally binding contract between the mover and their storage customer.
Q: What does our moving and storage insurance policy cover?
A: Our insurance policy is formally called WAREHOUSE LEGAL LIABILITY COVERAGE. As stated in the policy, the policy covers the mover’s legal liability for loss to covered property while the property is under the insured mover’s care, custody, and control and that the mover is legally obligated to pay as a warehouse operator under a warehouse receipt issued by the insured.
Q: What is a warehouse receipt?
A: The warehouse receipt is a legally binding contract between the mover and its storage customer. It should include all of the critical information needed, such as the full name of the mover, the address of the warehouse, the customer’s name, as well as the value of the goods in storage lot. Most states have a minimum value for stored goods, such as 60 cents or 30 cents per pound.
Q: What is the relationship between the policy and the warehouse receipt?
A: Since the Warehouse Legal Liability Coverages does not specifically exclude “Acts of God,” we want to see a stipulation on the warehouse receipt that Acts of God are excluded from liability. Acts of God are beyond the control of the mover and include such causes of loss as tornado, lightning, flood, earthquake, etc. For these reasons we require a copy of the insured’s warehouse receipt.
Q: What happens if a mover doesn’t issue a warehouse receipt for a storage lot?
A: Best practice is for a moving company to issue a warehouse receipt for each storage lot, without exception. Should a mover take in a storage lot and there be a partial or total loss of a customer’s goods, the mover will be subject to a claim or a lawsuit without the benefit of the per pound liability limitation.
Have a question for our Underwriting Team? Send to BrandonL@MoversChoiceIns.com.
Written By: Dan Meissner
Executive Underwriter Dan Meissner, a 30-year insurance industry veteran, is celebrating five years with MOVER’S CHOICE. Dan finds serving as a reference for customers and co-workers one of the most rewarding aspects of his role, as well as binding new business. Dan holds a Bachelor of Arts and CPCU and AU designations.