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25 Mar 2024

Safeguarding Your Investment: Key Insurance Considerations for Self-Storage Facility Owners

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Brett Copper

Director of Business Development/Partner - Copper Storage Management

When it comes to the self-storage industry, safeguarding your facility against unforeseen risks is crucial to long-term success. While insurance may feel obvious to protect your physical building against a catastrophic event such as a flood or fire, it is also important to consider factors such as employment-related claims or customer goods legal liability.

Why Does Insurance Matter?

Insurance fosters peace of mind, allowing facility owners to focus on their core business operations without worrying about unforeseen events jeopardizing their investments. Without insurance, self-storage facility owners risk losing their business and reputation if they cannot handle these unexpected expenses. Therefore, having the right insurance coverage is essential for self-storage business owners to safeguard their investments and ensure long-term success.

Insurance for Self-Storage Facilities: Need-To-Know Info for Owners

The Role of an Experienced Insurance Agent

One of the first steps in securing comprehensive insurance is partnering with an experienced insurance agent. A knowledgeable agent can guide facility owners through the complex landscape of insurance options, ensuring they obtain coverage tailored to their unique needs.

Safeguarding Stored Belongings: Legal Protection Beyond Lease Agreements

If you own a self-storage business, it’s crucial to consider the legal consequences associated with customers’ stored goods. While a standard self-storage lease may absolve the business owner of responsibility for a tenant’s belongings, the reality is that lawsuits can still arise. Imagine a scenario where a customer alleges negligence, claiming that their property suffered damage while under your care. The ensuing legal costs and potential court judgments can significantly threaten your operation. A specialized insurance form fortifies your defense against such risks, extending coverage to the facility owner for this specific exposure. This tailored coverage addresses potential legal liabilities and provides a crucial layer of protection in scenarios where lease agreements may fall short.

Mitigating Risks in Sale and Disposal: Comprehensive Coverage for Legal Security

In managing self-storage facilities, the sale and disposal of tenant property is a delicate and regulated process governed by state statutes. Even the slightest misstep during this intricate auction process can expose your business to potential vulnerabilities. Imagine a situation where an oversight in the sale and disposal process leads to claims of loss or damages from a tenant. In such cases, the legal ramifications can be severe, with court rulings potentially deeming the operator negligent, resulting in excessive legal costs and payouts. Specialized self-storage coverage provides a robust legal defense. This coverage is designed to shield facility owners even when a customer’s lawsuit is deemed groundless, offering peace of mind and a crucial layer of protection in the complex landscape of self-storage operations.

Catastrophic Business Loss

Unforeseen disasters can pose a significant threat to self-storage facilities. Insurance coverage for catastrophic business loss ensures financial protection after natural disasters, fires, or other catastrophic incidents.

Adhering to Building Codes and Standards

Staying compliant with building codes and standards is not just a legal requirement but also a factor influencing insurance coverage. Facility owners should ensure that their insurance policy considers adherence to codes and standards, mitigating risks associated with non-compliance.

Cyber Risks

In today’s digital age, self-storage facilities are not immune to cyber threats. Insurance coverage for cyber risks is essential to protect sensitive customer data and mitigate the financial impact of potential cyberattacks.

Employment-Related Claims

Employee-related disputes and claims can arise in any business. Facility owners should consider insurance coverage for employment-related claims to shield themselves from legal and financial consequences associated with workplace disputes.

Insurance Considerations You Can’t Ignore: The Conclusion

As a self-storage facility owner, investing in the right insurance coverage is integral to protecting your business and its assets. By understanding and addressing considerations such as working with experienced insurance agents, customer goods legal liability, sale and disposal liability, catastrophic business loss, adherence to building codes, cyber risks, and employment-related claims, facility owners can confidently navigate the insurance landscape. While self-storage management companies, like Copper Storage Management, can offer recommendations, facility owners must take the proactive steps necessary to secure the right insurance coverage for their specific needs.


Copper Storage Management was created in 2019 by the Copper family. Bob Copper and his son Brett Copper have spent their entire careers in the self-storage industry. Copper Storage Management offers maximum convenience and service through a fully remote business model, cutting the costs of part-time or full-time on-site storage managers. Copper Storage Management is committed to the success of its customers by streamlining a multitude of services and operations.

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