Insurance for Your Self Storage Business

For a self storage business to be successful and survive the typical hassles associated with the industry, insurance coverage is key. Here we talk about the importance of insurance for your self storage business, and the types of coverage to consider.

self storage insurance

With the current boom in the self storage market, many are rushing to open new facilities, with some underestimating the importance of insuring their new businesses. In this article, we talk about the importance of insurance for your business, and the types of coverage you should consider.

The Importance of Insurance for Self Storage Businesses

As a self storage business, you are not necessarily directly responsible for your customer’s belongings. However, you could face liability suits for loss or damage to your renter’s properties, for instance by fire damage, floods, or theft. Having appropriate insurance policies can also show that you care about the workers and the renters, providing safety for potential customers which might even help convert leads to renters.

In order to protect your reputation and save yourself from financial distress, it is vital to acknowledge the importance of insurance in your storage business.

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The Different Types of Insurance

1. Business Income Insurance (Business Interruption Insurance)

This can be claimed if an unforeseen event leads to a shutdown of your storage facility for some time. While repairs are ongoing, the insurance provides you with a continuation of income until business returns and you’re able to collect revenue.

2. Business Liability Protection

Imagine being asked to pay medical bills because someone slipped and fell on your property. You can avoid this by including this type of insurance in your package. That way, the insurance company protects you from liability for bodily harm and property damage that occurs on-site. This type of insurance falls under General Liability Business Insurance.

3. Commercial Property Insurance

This protects your office space and the physical structure of your storage units from damages caused by natural disasters such as fires and other events like vandalism. We don’t need to stress how important this is as we all know the unexpected could happen at any time.

4. Business Property Insurance

This can help cover the cost to repair or replace damaged properties you keep in your office space including personal property, furniture, hardware, electronics, etc.

5. Flood Insurance

Water damage can be devastating to your business. Flood insurance provides coverage against damage to property caused by floods regardless of whether or not your facility is in a high-risk area.

6. Worker’s Compensation Policy

This is for storage businesses that have outside employees on their payroll. These employees must have no stake or ownership in the business for it to count. This policy protects the welfare of the employers and employees by providing wage replacement and medical care to employees who were hurt in the course of duty, thereby sparing the employer from a negligence lawsuit.

Key Coverage to Include

1. Speciality Coverage Policies (Storage Specific Coverage)

These are some other coverage schemes that can come in handy, particularly in a self storage business

  • Customer’s goods legal liability - This protects you in case you were found responsible for damage to a tenant’s stored goods. It takes care of both defense costs and damages to said goods.

  • Sales and disposal legal liability - This provides coverage that protects you against negligent acts of renters, such as default in payment, that could lead to the sale or disposal of their property. With this coverage, you won’t be held liable for such sales.

self storage checklist

2. Commercial umbrella liability insurance

This is for extra coverage beyond the standard insurance schemes. It is necessary considering the number of people that enter storage facilities bringing with them all sorts of risks


Lack of adequate coverage for your business can have disastrous consequences. By being proactive through following local laws, having a well-written lease, and having the right insurance, not only can you protect your business, but you can also put you and your employees’ minds at ease. When considering what kind of insurance policies and coverage amounts you require for your business, be sure to talk to an experienced insurance professional.

Related Article: 7 Tips Before Setting up your Self Storage Facility