We would like to thank Bill Leppert of HJ Spier Company, out of Indianapolis, IN, for this month’s coverage question of the month!
Many movers say they only use the Bill of Lading (BOL) and storage language on the BOL to address customer goods in storage. Why is the warehouse receipt so important or necessary?
A small assumption here, we are talking about a mover, meaning a risk with a specified (or temporary location as defined in the policy) and limit for liability as a Warehouse Operator. If the policy is issued with the Moving and Storage Coverage form (Form 84308), the following applies in most situations.
The definition of Liability as a Carrier requires that a claim occurs in the ordinary course of transit to property described in the “shipping document” or “advice of coverage”.
Our coverage for Liability as a Warehouse Operator also allows for coverage under a “shipping document,” “storage document,” or “advice of coverage.” It requires that goods must be at a “specified location” or a “temporary location”. Please note that coverage at a “temporary location” ceases after 120 days and there are limitations including a $100,000 limit.
Additionally, if a customer has goods listed on a BOL and they are going to extend storing those goods over the allotted storage in transit (SIT) period of 90 days, then those goods are required to be converted over to a Warehouse Receipt. BOL’s are intended for transportation and SIT situations. If this does not occur then that could cause coverage issues.
Why is a warehouse receipt or storage document so important or necessary?
We ask for a few of reasons:
- We do want to be sure that appropriate documentation is properly completed and signed by the shipper or customer so that aren’t any coverage surprises later:
- We will do a cursory review and advise if something seems askew. As an example, we have seem incorrect names on the BOL and/or WR, and that can impact coverage when it doesn’t match the Named Insureds on the policy. We always recommend for any legal documents you seek expert advice from the appropriate professionals.
- While we need the actual ones in the event of a claim, it helps us get started to know they have them in place.
Now for the disclaimer: This article is written in a very broad fashion and will not be used in any claims settlement. The actual policy and circumstances surrounding a claim take precedence. There may be some exclusions and limitations not addressed in this brief article.
Written By: Terri Moran
Terri’s career spans many years with roles in Leadership, Underwriting and Marketing. She was responsible for one of the largest Moving & Storage programs nationally, serviced by dedicated Moving & Storage brokers. In her spare time, in addition to enjoying her family, she is the Chair of the Board of Directors for the Surplus Lines Association of California.
