Definitions
Customers' Goods Legal Liability
Customers' goods legal liability coverage provides protection for an insured when they are legally liable (or alleged to have been liable) for damage to storage customers' goods including property stored in the open, off premises or in transit. The coverage includes defense costs. No deductible applies to self-storage accounts. A $1,000 deductible applies to mobile self-storage and records storage accounts.
Sale and Disposal Liability
Sale and disposal liability protects an insured for claims arising from negligent acts in connection with the lock-out, sale, removal or disposal of customers' property. Typically, these claims occur when an insured sells the goods of a customer who is delinquent with regard to payment. The cost of defense is included. A $1,000 deductible per customer applies.
Umbrella Policy
Umbrella coverage provides higher additional limits (minimum $1 million) over general liability, auto liability, and employer's liability. Limits of up to $25 million may be available. We can often write coverage over other carriers' owned auto and employers liability policies.
Resident Managers' Personal Liability
This coverage provides personal liability protection for on-site resident managers. A resident manager is covered for liability under the business commercial general liability policy while working for the insured in the self-storage business. This coverage will protect the resident manager for liability arising from his non-business activities.
Underwriting Criteria
The StorageFirst program is is available in all states and is designed for better than average risks with self-storage, mobile self-storage storage, and/or records storage as the primary operation(s).
The following are some characteristics we like to see:
- Metal-on-metal (non-combustible, Class 3) or better construction
- Experienced management. At least one year in business.
- Good loss history.
- Legally strong storage agreements signed by storage customers.
- Well-maintained premises and equipment.
- Owners/management knowledgeable about the laws and procedures required to perform a legal sale of a delinquent customer's goods.
The following characteristics of a risk may make it ineligible for this program:
(We do make exceptions, so please call or e-mail us if you need to discuss a risk)
- Fire protection class 9 or 10.
- Wood-frame construction (Class 1), including wood frame structures with steel/metal walls and roof. Joisted masonry or better construction is acceptable. We often make exceptions if the fire protection class is good and most of the buildings are not climate controlled.
- Risks with poor loss history
- Converted Facilities. Older properties that have been converted to a storage operation from another use that have not received significant updates to the roofs, wiring, and plumbing may not be eligible. Converted facilities are typically fine if these updates have occurred.
- Non-storage operations on the premises. The following are generally not acceptable and will either make the entire risk ineligible or can be excluded from coverage under this program:
- public warehousing
- car washes
- moving and storage operations
- propane filling operations
- Operations without an acceptable storage agreement/lease form. The storage agreement must contain clauses that protect the insured, such as "hold harmless," "no bailment," "rights of insured with regard to sale and disposal of customers' goods," and "customer is responsible for goods and should obtain his own insurance on the goods." There are many state and national storage associations that offer their members the use of quality storage agreements/leases.
- Fire-sprinkled properties without a fire sprinkler inspection/maintenance contract in force.
- Coastal wind-exposed facilities. Facilities within 50 miles of the Gulf or Atlantic coasts from Texas to Virginia may be ineligible for wind coverage. We often can write the property coverage excluding wind in those states that allow it. In some states, including Florida, we can write the casualty coverages (general liability, customers' goods legal liability, sale and disposal liability, hired and non-owned auto, and umbrella) on a mono-line basis without property coverage. Wind coverage may be available for coastal properties that are a part of a large multi-location account.
Acceptable non-storage operations must be ancillary to the primary storage operations, such as:
- Manager/owner living quarters and office.
- Truck rental operations
- Retail sale of keys, boxes and packing supplies
- Office, retail or office/warehouse space for rent that is owned by the insured and located on the same premises (Significant other non-self-storage operations on the premises will either make the account ineligible or these operations will be excluded from coverage.)
Builder’s Risk
The Travelers policy form does provide some coverage for the interest of the insured for property in the course of construction. We will require that the insured have a fully insured third party general contractor performing the work. The insured will need to be named as an additional insured on the general contractor's general liability policy with a waiver of subrogation on the contractor's GL, auto and employer's liability policies. We write the package on properties under construction based on the fully completed value. For more comprehensive builder's risk coverage, we can add a builder's risk form to the policy. We srongly recommend this. Minimum premium is $250.
Coastal Wind Exposed Properties
Generally this program does not offer wind coverage for tier one and sometimes tier two properties located from the Texas Gulf Coast to Virginia. Wnd coverage for properties in these coastal areas is offered on an exception only basis and usually only for very large multi-state accounts. We can usually write the package x-wind where allowed by law. We do offer mono-line casualty coverage (GL, CGLL, S&DL, hired and non-owned auto, workers' compensation and umbrella) in some Gulf Coast and mid-Atlantic states including Florida.
Florida Mono-line Casualty
Mono-line casualty coverage (general liability, customers goods legal liability, sale and disposal liability, hired and non-owned auto, workers' compensation and umbrella) is available in Florida. We can also write package policies on an x-wind basis.
Tenant Insurance
StorageFirst does not offer insurance for the benefit of storage tenants.
Payment Terms
StorageFirst is primarliy an agency-bill program. Your agency is responsible for payment of the premiums net of commission, regardless of whether or not you have collected premiums from the insured or finance company. Payment of invoice(s) is due and payable to StorageFirst upon receipt. Policies are subject to cancellation if payment is not received within 30 days. Reinstatement is offered on an exception-only basis. Please do not send payment directly to Travelers Insurance.
Direct bill payment through Travelers is generally only available for accounts with premiums in excess of $7,500. Direct bill payment options are; 25% down and 9 payments or quarterly. Umbrella policies can be direct billed but all of the premium is billed up front. Travelers handles all billings including the downpayment.
Commission is 12.5% to you for package and mono-line casualty. Umbrella commission is 10% and systems breakdown is 7.5%. Workers compensation is 8%. Oklahoma commissions are the same except the package commission is 10%.
Insurance agents/brokers
This is a wholesale/MGA program that is available to all agents who are registered and approved in the CoverageFirst agency registration system. Registration is not required to submit an application for a quote/proposal, but will need to be completed before binding. Agent registration can be completed on-line at: www.coveragefirst.com.
Request Binding
Agents and brokers have no binding authority under this program. No coverage is bound until written confirmation from StorageFirst is received.
The following is required for binding:
- You have reviewed and accept the terms and conditions as outlined on this Web site and within the quote/proposal provided to you.
- Our approval of the completed StorageFirst application signed by both the insured and agent You can email or fax it to us. (E-mail is preferred) We don't need the original signed application. If the risk is a mobile self-storage or records storage operation, we will require a completed Acord application along with a completed and signed StorageFirst Mobile Self-Storage or Records Storage supplemental application.
- Our approval of a copy of the rental contract/storage agreement used by the insured.
- We require specific written instructions from you requesting the coverage to be bound and the effective date. (E-mail is preferred.)
- Your agency must be registered and approved with CoverageFirst. Registration must be completed on-line at: www.coveragefirst.com.
Please check the application(s) carefully to insure that it is accurate and complete, since the policy(s) will be issued based on this information. We would like to eliminate or at least minimize the number of endorsements to the policy(s).
The top three endorsement requests we receive are:
- Named insured correction
- Mailing address or facility location address change/correction
- Mortgagee information correction
Please check to see that the information submitted is correct.
Billing / Policy Insurance
Billing
Upon receipt of your request to bind coverage, we will e-mai binders and an agency invoice to you. Typically we will respond within 24 hours. If you do not receive a binder within 24 hours of your request to bind, please notify us immediately. Coverage is not bound until you receive written confirmation from StorageFirst.
For agency billed policies, your agency is responsible for payment of the premiums net of commission, regardless of whether or not you have collected premiums from the insured or finance company. Payment of agency invoices is due and payable to StorageFirst upon receipt. Policies may be cancelled if payment is not received within 30 days. Reinstatement is offered on an exception only basis. Please do not send payment directly to Travelers Insurance. A direct bill payment option may be available for accounts with premiums in excess of $7,500.
Commissions
- Package: 12.5%, Umbrella: 10%, Systems breakdown: 7.5%, Workers compensation: 8%.
- Oklahoma commissions are the same except 10% is paid on a package policy.
- You may prmeium finance through your office.
Policy Issuance
After coverage has been bound, we will issue the policies, which are transmitted as follows:
Your copy of the policy (agent/broker copy) will be e-mailed to you as an Adobe PDF. A cover letter will be included, stating that StorageFirst has reviewed the policy(s). If we notice that corrections are necessary, we will advise that the correcting endorsement(s) has been ordered. Endorsements to polcies will also will be e-mailed to you as a PDF. Your agency is responsible for checking the policies immediately and advising StorageFirst of any necessary changes.
The insured's paper copy of the policy and any subsequent endorsements will be mailed directly to the insured from Travelers Insurance.
Automatic Renewals
Accounts with annual premiums of less than $2,500 will be automatically renewed and the policy(s) issued. A renewal proposal will be emailed to your agency along with a letter of instruction 45-60 days prior to the account expiration date.
Renewals
StorageFirst renewal quotes/proposals will be automatically prepared and e-mailed to you 45- 60 days before the policy expiration date. We need a current contact name and e-mail address to transmit the renewal proposal to your office. Completion of a renewal application may be required but usually is not.
Please note: We cannot bind your renewal unless your agency status with CoverageFirst is approved. Please make sure your insurance license and errors and omissions information on file with CoverageFirst is up to date. If not, you will need to provide CoverageFirst (not StorageFirst) with the updated information. The CoverageFirst phone number is: 888-650-2685. Web site: www.coveragefirst.com
Please review your account carefully before the renewal to determine if any changes are necessary. It is important that you communicate any changes to us before the renewal so that these can be included in the renewal proposal and policy. We would like to eliminate or at least minimize the number of endorsements to the policies. All change requests must be in writing (Email is preferred).
The top three endorsement requests we receive are:
- Named insured correction
- Mailing address or facility location address change/correction
- Mortgagee information correction
Please make sure this information is updated and correct.
About Travelers Insurance
Learn more about Travelers Insurance at this Travelers Web site link: Travelers Web site
Agency Registration
The StorageFirst program is available to all insurance agencies who are registered and approved in the CoverageFirst on-line agency registration system at: www.coveragefirst.com.
To register, click on the "Register" tab and the site will prompt you for some general information and request that you approve an on-line contract. You will then be prompted to provide to CoverageFirst (not to StorageFirst) a copy of your agency license and evidence of errors and omissions coverage with a minimum limit of $1 million. When this is completed, CoverageFirst will send an email to you stating that your agency is registered and approved.
Registration at CoverageFirst is not required to submit an application to StorageFirst for a proposal. However, coverage cannot be bound until your agency is registered and approved.