3PL, Warehousing & Fulfillment
Warehouse legal liability, cargo in transit, cold storage and spoilage, fulfillment SLAs, multi-client inventory, WMS cyber exposure. Coverage built for the complexity of holding, moving, and shipping other people's goods.
Coverage types built around the risks your business actually faces.
Warehouse Legal Liability
Coverage for customer goods in your care, custody, and control. Protects against damage, theft, and mysterious disappearance of stored inventory. Per-client and per-occurrence limits structured to your customer mix.
Standard CGL excludes damage to property in your care, custody, and control. Warehouse legal liability is the only form that responds when client goods are damaged in your facility, and your warehouse contract's limitation of liability clause may not hold up in court.
Commercial Property
Building, racking systems, dock equipment, cold storage infrastructure, conveyor systems, and material handling equipment. Includes coverage for improvements and betterments in leased facilities.
High-density racking, automated conveyor systems, and cold storage units are expensive to replace and critical to operations. Under-insuring your warehouse infrastructure means a fire could close your facility even if client goods are covered separately.
Equipment Breakdown and Spoilage
Coverage for refrigeration system failure, compressor burnout, ammonia system malfunction, and electrical distribution failure. Spoilage coverage protects against the value of temperature-sensitive goods destroyed by equipment failure.
A single refrigeration compressor failure in a cold storage facility can destroy millions in perishable inventory within hours. Standard property policies exclude mechanical failure. Equipment breakdown is the only form that responds, and spoilage coverage is what pays for the client's ruined goods.
Motor Truck Cargo
Coverage for client goods during transportation: loading, transit, and unloading. Includes refrigerated cargo endorsements, cross-docking coverage, and last-mile delivery protection.
A refrigerated trailer that loses temperature control during a 600-mile haul can destroy $200K in perishable goods. Motor truck cargo with a temperature variance endorsement covers spoiled goods. Standard cargo forms often exclude temperature-related losses.
Pollution Liability
Coverage for ammonia refrigerant releases, diesel fuel spills from refrigeration units, and chemical contamination from warehouse operations. Includes first-party cleanup, regulatory defense, and third-party bodily injury claims.
Cold storage facilities using ammonia refrigeration systems face serious pollution exposure. An ammonia release triggers emergency evacuation, HAZMAT response, EPA reporting, and potential bodily injury claims, none of which are covered under standard GL.
General Liability
Premises liability for facility visitors, delivery drivers, and contractor injuries. Includes coverage for dock operations, forklift incidents, and loading area accidents.
Warehouse and fulfillment facilities have high incident rates from forklift operations, dock plate failures, and loading area congestion. Your GL limits should reflect the daily foot and vehicle traffic through your facility.
Cyber Liability
Protection for WMS and TMS system breaches, EDI data compromise, client inventory data exposure, and ransomware attacks that halt fulfillment operations.
A ransomware attack that locks your WMS means you cannot receive, pick, pack, or ship. Every hour of downtime is a breach of your SLAs. Cyber covers the ransom negotiation, system restoration, business income loss, and client notification costs.
Business Interruption and Contingent BI
Lost revenue when a covered peril shuts down your warehouse or fulfillment operations. Contingent BI covers income loss when a key client's disruption reduces your throughput.
3PLs and fulfillment centers with high client concentration face contingent BI risk. If your largest client pauses shipments due to their own loss, your revenue drops even though your facility is undamaged.
These aren't hypotheticals. They're the claims scenarios we see. Here's how coverage actually responds.
A false alarm triggers the sprinkler system in a warehouse zone storing electronics for your largest client. Water damage renders the inventory unsalvageable.
How coverage responds: Warehouse Legal Liability covers the client's inventory at declared value. But the key question is limits. If your per-client limit is $1M and the loss is $2M, you're personally exposed for the gap. We structure limits around your largest client's maximum storage value.
A compressor in your cold storage facility fails overnight. By morning, the internal temperature has risen above safe thresholds. 40,000 square feet of frozen food inventory across six clients is condemned.
How coverage responds: Equipment Breakdown covers the compressor repair and expediting costs. Spoilage coverage pays for the destroyed client inventory. Pollution Liability responds if the ammonia release triggers evacuation and HAZMAT response.
Attackers encrypt your warehouse management system through a compromised EDI connection. You cannot process inbound receipts, pick orders, or generate BOLs for three days.
How coverage responds: Cyber Liability covers ransom negotiation, system restoration, business income loss during downtime, and notification costs to affected clients. SLA penalty coverage, if endorsed, handles contractual penalties from missed shipment windows.
A reefer unit fails 400 miles into a 900-mile shipment of pharmaceuticals. By the time the driver notices, the cargo has been above temperature threshold for 6 hours and must be destroyed.
How coverage responds: Motor Truck Cargo with temperature variance endorsement covers the full declared value of the destroyed cargo. Standard cargo forms that exclude temperature-related losses would deny this claim entirely.
You're Holding Other People's Inventory Without Enough Coverage
When you store and move other people's inventory, small coverage mismatches get expensive fast. Weak liability limits, spoilage gaps, and WMS-related cyber exposure can leave you absorbing losses that should have been insured. We'll compare your structure to actual inventory values and identify the shortfall.