The Unseen Insurance Mistake
As a business owner, your focus is on growth, efficiency, and success. But what if a simple oversight could cost you six figures? Many business owners unknowingly leave themselves vulnerable by failing to update their insurance policies when moving warehouse locations. This mistake could lead to devastating financial consequences when disaster strikes.
Moving Your Business: The Risk You Might Miss
Expanding your business is exciting, but relocating inventory requires careful planning—especially when it comes to insurance. One common but overlooked issue is failing to update the insurance company about your new warehouse location.
Your commercial policy might include a marine or inventory coverage plan that protects your stock in case of theft, damage, or disaster. However, most policies require the insurance company to approve each warehouse location to ensure the goods are adequately covered.
If you fail to notify your insurer, you might find out too late that your entire inventory is uninsured.
The Problem: Uninsured Warehouse Location
At Panther Public Adjusting, we recently encountered a heartbreaking case. A business owner had a marine policy covering their warehouse inventory. They moved to a new warehouse as part of their expansion, but they forgot to update their policy with the new location.
Unfortunately, their new warehouse was broken into, and a six-figure sum of merchandise was stolen. When they contacted us for help, we reviewed their policy and found that their coverage only applied to their old warehouse locations.
Because their new location was not listed or approved by the insurance company, their claim would be denied. This meant that they had to absorb the entire loss out of pocket.
Why Your Insurance Needs to Be Updated
Your warehouse location must be approved by your insurance provider to ensure your inventory is protected. If you move your goods to a new location without updating your policy, your insurance company has the right to deny coverage.
Whenever you move to a new warehouse or storage facility, follow these steps to avoid costly mistakes:
- Contact your insurance provider immediately and inform them of your new location.
- Request written confirmation that your new warehouse is covered.
- Review your policy in detail to ensure all listed locations are accurate.
- Work with a public adjuster to ensure your coverage meets your business needs.
- Document all communications with your insurer via email for future reference.
Insurance Policies & Warehouse Approvals Explained
Insurance companies require warehouse approval because different locations pose different risks. Factors such as:
- Security measures (alarms, surveillance, gated access)
- Building structure (fire resistance, flood zones, crime rates)
- Storage conditions (climate control, shelving, hazardous materials proximity)
These elements determine whether an insurance company will extend full coverage to your inventory. If your new location isn’t listed, it’s not covered—regardless of how much you’ve paid in premiums.
Real Case Study: Six-Figure Loss from Theft
One of our clients, a Florida-based business owner, suffered a break-in at their new warehouse. They assumed their marine policy would cover the stolen goods—only to discover the claim would be denied because they never updated their policy with the new address.
Had they informed their insurer about the move, their claim would have been valid and fully paid. Instead, they suffered a catastrophic six-figure loss.
Don’t let this happen to you. Update your policy today and prevent an unnecessary financial disaster.
📞 Call us now at 833-726-8437 to review your policy and ensure your business is fully protected.
📩 Email us at Claims@PantherPA.com to submit your policy for review.
How to Avoid This Mistake & Protect Your Business
To ensure your business is always protected, follow these best practices:
- Review your policy every six months to ensure all locations and inventory details are up to date.
- Work with an experienced public adjuster to avoid common pitfalls that could result in claim denials.
- Document all communications with your insurance provider to prove you’ve made the necessary updates.
- Understand your policy’s fine print—many business owners assume they are covered when they are not.
Need help understanding your policy? Check out our guide on What’s In My Home Insurance Policy?
Internal Links to Boost Your Knowledge
- Confused about policy details? Read What Happens to My Policy When I File a Claim?
- Learn how depreciation impacts your claim in What is Depreciation? My Insurance Depreciated My Claim by 90%. Can They Do That?
- Secure your inventory and avoid policy loopholes with our Hurricane Preparedness guide.
Conclusion: Stay Informed, Stay Covered!
Don’t let a simple oversight cost your business thousands. Stay proactive, update your policy, and ensure you’re fully covered before disaster strikes.
At Panther Public Adjusting, we specialize in helping businesses navigate insurance claims and secure the compensation they deserve.
📞 Call us today at 833-726-8437 for a free consultation.
📩 Submit your policy for review at Claims@PantherPA.com and safeguard your business now!
Your business deserves full protection. Let Panther Public Adjusting make sure your claim is honored!