by Kim Kilpatrick
June 4, 2010 12:07 PM
Lexington Insurance Company announced this week that it is adding a new line of insurance specifically tailored to the needs of self storage companies. The new program will be called the Self Storage Facilities Program, and will be administered by All Risks, Ltd.
Many, if not most, self storage facilities offer tenants the opportunity to insure the contents of their storage units. Lexington’s new program, though, is not for tenants. Instead, it will insure facility owners. Self storage facility owners insured by Lexington will receive a package of insurance including general liability coverage and coverage against equipment breakdown. Owners can also pick and choose what kinds of coverage they need if they do not want the entire self storage insurance package.
Lexington’s press release announcing the new insurance package does not enumerate the kinds of situations that might be covered. However, general liability coverage generally includes coverage for injuries or property damages that occur as the result of an accident. Few accidents are likely to occur while items are being stored, but accidents sometimes occur when tenants are moving into or out of a self storage unit, especially if very heavy items are being moved. Equipment breakdown coverage is becoming especially important as more self storage facilities invest in expensive, state-of-the-art security systems.
“We are excited to work with Lexington on this new program to serve the needs of the self storage industry,” said Chris Kelleher, a vice president at All Risk, in the Bradenton Herald on Wednesday. Lexington senior vice president Vince Pugliese agreed, commenting, “With over 52,000 self storage facilities in existence, representing over 2.35 billion square feet of storage, the self storage industry in the U.S. has routinely been identified as a top-tier growth industry....We are excited to bring a quality insurance program to this sector.”
Sources used:
“Lexington Insurance Company introduces self storage facilities program.” The Bradenton Herald. June 2, 2010.
“Lexington launches new self storage facilities program.” Insurance Business Review. June 3, 2010.
“Self-Storage Facilities program by Lexington Insurance Co.” Inside Self-Storage. June 2, 2010.
“Understanding general liability insurance.” Small Business Solutions.