There are three things to look at in warehouse insurance: the limit, the scope and the deductible. The existence of a policy is not a guarantee on its own; if these three figures do not match your cargo, the policy is useless when damage occurs.
The value of goods left in a warehouse is often higher than that of the warehouse itself, which is why insurance is not an ornament on the service but its foundation.
The limit
The policy limit should cover the highest value of goods that can be in the warehouse at one time. On high-tonnage steel shipments that figure grows quickly.
Assess the limit not against the value of your own consignment but against the total value that can be in the warehouse at once — the limit is shared across all the goods.
The scope
The words "all risk" do not mean every risk is covered; the exclusions are written in the policy. Ask one by one whether the following headings are within the scope:
- Fire and explosion
- Flooding and leakage
- Theft
- Damage occurring during handling
- Earthquake
- Damage caused by moisture and corrosion
The deductible
The deductible is the amount the insured bears on each claim. A policy with a high deductible never comes into play for small but frequent losses.
That is why the deductible should be asked about as much as the limit; together the two give the real level of protection the policy provides.
Taking out your own policy
As the owner of the goods you may arrange your own policy. In that case check before signing whether the scope of the two policies overlaps.
If it is unclear which policy responds in the event of damage, the claim process drags on unnecessarily.