Warehouse Operators

Comprehensive protection for warehouse exposures.


Warehouse Operator

Designed specifically for your business, Avalon’s strong programs are tailored to warehouse operators.

Cargo Insurance/Bailee

Secure the goods in your warehouse with industry-leading protection. Avalon provides options for open cargo policies, Bailee, project shipments and long-term warehouse storage.

Professional Liability Insurance

What happens if you’re sued for a distribution error, such as accidentally shipping an incorrect number of pieces or co-mingling freight? What if you’re held liable for theft? Would you know what to do? Costs to defend a claim can actually exceed the amount being claimed. The right coverage keeps your business successful. Rely on Avalon for protection and stability.

Actual Claims Examples

To illustrate how valuable Avalon’s Combined Transit Liability program is in managing a warehouse operator’s business risks, read about these actual claims.

  Theft in Bonded Warehouse

Claim Example: Theft of Goods in Bonded Warehouse


A carrier placed a shipment in a bonded warehouse for Customs inspection. After inspection, the carrier then picked up the goods for delivery to the consignee. Upon loading, it was discovered that several cartons of goods were missing and assumed to be stolen from the warehouse. The consignee then sued the warehouse operator for the amount of the missing goods.

The goods were not confiscated by Customs, which would have allowed the warehouse operator to reject liability for the claim. The loss was considered a theft and the warehouse operator was held liable for full value of the goods for negligent safekeeping.

  • Claim Amount: $25,000
  • Settlement: $25,000
  • Legal Fees: $3,000
  • Insured’s Deductible: $5,000

  Incorrect Temperature Settings

Claim Example: Incorrect Temperature Settings


A warehouse operator stored products that needed the temperature to be maintained between 40°F and 50°F. The forwarder was aware and informed the warehouse operator, but the warehouse operator failed to follow instructions. The product spoiled and the shipper held the warehouse operator liable for the amount of lost products and initiated a lawsuit.

Had the freight forwarder purchased Avalon’s CTL program, negligence in failure to maintain correct temperature settings would have been covered and all legal fees would have been paid under policy terms. With Avalon’s First Dollar Defense option, the warehouse operator’s deductible would only apply to settlement amounts and not legal fees.

  • Claim Amount: $20,215
  • Paid out of pocket: $20,215

  Warehouse Contracts

Claim Example: Warehouse Contracts


A warehouse operator stored a shipment of computer parts that were sent from New York to Virginia weighing 5,043 pounds with an invoice amount of $100,000. Prior to the shipment, the warehouse operator entered into a special contract increasing liability to $9.07 per pound instead of the standard bill of lading limitation of $.50 per pound. After the consignee picked up the goods from the warehouse in Virginia, parts of the shipment were missing.

The buyer informed the warehouse operator the total weight missing was 2,143 pounds. Since the warehouse operator received approval for their special contract through Avalon, the policy paid a claim amount of $19,437 minus the deductible. If the warehouse operator did not pursue special contract approval prior to the shipment, the policy would have paid only the standard bill of lading limitation of $1,071.50, which would have fallen under the policy deductible.

  • Claim Amount: $60,000
  • Settlement: $40,000
  • Legal Fees: $3,000
  • Insured’s Deductible: $5,000

  Delay in Delivery of Merchandise

Claim Example: Delay in Delivery of Merchandise


A freight forwarder, who is also a warehouse operator, was sued by a shipper for failure to ship auto parts from the warehouse at the intended time via ocean freight. The shipper demanded shipment by air freight so the goods would arrive in enough time to meet the needs of the consignee. Since shipping by air is more expensive than by ocean, the claim was filed for the difference between air freight and ocean freight charges. The freight forwarder’s E&O policy covered the claim amount, minus the deductible.

  • Claim amount: $7,634.00
  • Deductible: $5,000


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Business Insurance

Warehousing companies can’t afford to have the shipping process stalled. If your facility is damaged, it’s important to rebuild or repair quickly. In addition to Property & Casualty coverage, we offer Workers’ Compensation, Umbrella, Commercial Auto and Executive Protection.

Download Applications
Cargo Insurance
Cargo Insurance Application  Word  PDF
Special Quote Application  Word  PDF
Professional Liability
Professional Liability Application  Word  PDF
Regulatory Defense Contract Application  Word  PDF
Special Contract Application  Word  PDF
Business Insurance
Business Insurance Master Application  Word  PDF
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