Self-Storage Business Insurance
Getting self-storage business insurance is essential.
Self-storage businesses need to protect themselves against a variety of different risks, such as those that relate to negligence, property damage, and contract violations.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Self-Storage Business
General liability insurance is — generally speaking — one of the most important insurance policies for a self-storage facility.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, your business could benefit from purchasing additional coverage; this is because a general liability policy will not protect it from all applicable risks:
- Damaged commercial property: You will need to purchase a commercial property insurance policy in order to protect your business’s commercial equipment (e.g., storage units, office equipment, etc.).
- Customer Goods Legal Liability Insurance: This coverage protects the self-storage business if it is held legally liable for damage to customers' stored property. While the renters often bear the primary responsibility for insuring their own goods, legal disputes can arise.
- Business Interruption Coverage: This coverage can replace business income lost as a result of a disaster that disrupts your self-storage business.
- Cyber Liability Insurance: If the company collects and stores sensitive data (like customer personal information or credit card details), cyber liability insurance can cover losses related to data breaches or other cyber incidents.
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Cost of General Liability Insurance
The average self-storage company in America spends between $400-$700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a self-storage business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Self-Storage Business
Example 1: The arm to the gate at the front of your property malfunctions, closing as the customer is still driving through. General liability insurance should cover the damage done to the customer’s vehicle.
Example 2: As part of the extra goods and services offered, your facility sells padlocks to customers. One of the models sold is proven to be defective, causing several of your customers’ storage contents to be stolen. Your general liability insurance will cover the loss of those items, as well as any legal defense fees associated with this loss.
Example 3: A customer slips and falls in a puddle of water near their storage unit, causing a back injury. General liability insurance will cover their medical treatment bills, as well as any required follow-up rehabilitation care associated with the injury.
Other Types of Coverage Self-Storage Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Your state will likely require you to carry workers’ compensation insurance for each full and part-time employee. This policy covers the cost of treating injuries sustained while on the job and also lost wages if an employee is unable to work for a period of time because of the injury.
Workers’ compensation insurance is typically purchased as a standalone policy.
Commercial Property Insurance
To run a self-storage company, you will need to own a building with expensive specialized build-outs. Commercial property insurance will cover the repair or replacement of the building in the event of something like a fire or severe storm. It will also cover the cost of repairing or replacing any business property located on the premises.
This coverage is frequently purchased as part of a business owner’s policy (BOP).
Commercial Umbrella Liability Insurance
As a self-storage company, hundreds of visitors will frequent the facility each week, significantly increasing your liability exposure. A commercial umbrella liability policy offers additional liability protection, above and beyond what the standard policy covers.
Business Interruption Insurance
If a major destructive event, such as a fire, occurs on the premises, it could take months to get the business back up and running again. Business interruption insurance will help replace some of the revenue lost while your business is out of commission.
Business interruption insurance is generally available as part of a BOP.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your self-storage business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Self-Storage Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Generally speaking, yes.
This is because having business insurance will only be beneficial if it is purchased before liability arises, and this could technically happen as soon as you begin interacting with clients, hiring staff, or purchasing equipment.
Not necessarily. Certain exceptions may be written directly into your self-storage business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.