The Risks of Shipping and Delivery

Self-storage operators and managers are always looking for ways to improve their offering, draw more customers and increase revenue. As modern-day ancillary services, shipping and delivery conveniences are gaining favor with operators and consumers alike. But could this add-on profit center be putting your business in jeopardy?

How much do you really know about shipping/delivery services and how they relate to tenant and owner responsibility? Take this little quiz and see how you fare.

1. Your tenant asks you to sign for a package delivered to the facility in his name. If something happens to it, will your commercial insurance cover your expenses?

A. Yes, of course. I have the best insurance in the country.
B. Maybe. My insurance agents don’t always like to hear from me.
C. No, it is not covered in my policy.

2. Your lease explicitly states that you, as the landlord, take no responsibility for property your tenant keeps in storage. If you put a package into a tenant’s unit and it becomes lost or damaged, are you liable for it?

A. Not at all, according to my lease.
B. Maybe, but I’m not going to admit anything.
C. Probably. My lease says one thing and then I take responsibility for it anyway.

3. A tenant asks you to send a package for him along with your own mail. Are you liable if this package fails to arrive or is damaged?

A. Of course not; the customer prepared it for shipping.
B. Maybe, but I followed his instructions.
C. Yes, very likely.

Don’t be surprised if the answer is C in each case.

When you take a package into your hands, you automatically incur what is called in insurance terms the “care, custody and control” (CCC) of an item. That means you’re responsible for it. And if you don’t have a separate agreement covering that transaction specifically, you may be out of pocket or in court for losses.