December 5, 2011

 Summary: Warehouse Operators Legal Liability insurance is not as specialized as it was in the past, presumably because insurers have had sufficient time to underwrite these risks profitably. In fact, both the American Association of Insurance Services (AAIS) and the Insurance Services Office (ISO) have standard forms available to cover these risks; the AAIS form is IM-7650, and the ISO form is IH 00 81 09 09. A number of other insurers also write this coverage using their own forms.

This article offers a broad brush approach in discussing the concept of warehouse operators legal liability. Included are discussions on the nature of warehousing; the difference between public and private warehousing operations; the warehouse operator's duty of care; the nature of the warehouse receipt that is mandated by federal law; why this coverage is needed; alternative approaches to covering these kinds of risk; and what underwriters are likely to consider of new applicants for this insurance. Considering the legalities of this subject, it is recommended that legal counsel always be contacted to ensure that all applicable laws are taken into account, since public warehousing operations are controlled by federal and state laws.