Understanding Your Insurance: Definitions

Just as no two self-storage businesses are exactly alike, no two insurance companies operate in exactly the same way. Here, we’ve laid out some key things to understand about StorageFirst Insurance — definitions, as well as payment terms and commission. If you have additional questions, feel free to contact the StorageFirst team.

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. For mobile self-storage operations, coverage extends to legal liability for customers' goods off premises or in transit. Defense costs are outside of the limit. No deductible applies to traditional self-storage accounts. A $1,000 deductible applies to mobile self-storage.
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. Defense is outside the limit. A $1,000 deductible per customer applies.
Umbrella coverage provides higher additional limits (minimum $1 million) over general liability, auto liability and employer's liability. Limits of up to $10 million may be available. StorageFirst can often write excess coverage over other carriers' owned auto and employer's liability policies. The underlying auto carrier must have an A.M. Best rating of A, and the auto liability limits must be at least $1 million CSL. Employer's liability limits must be at least $500k/$500k/$500k.
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.
Builder's risk coverage is typically reserved for accounts we currently write that are adding additional square footage to an existing facility. We will require that the insured have a fully insured third-party general contractor performing the work. The insured must 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 will require confirmation of these items.
StorageFirst does not offer insurance for the benefit of storage tenants.

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