Warehouse-to-Warehouse Clause
Candlefocus EditorThe need for a warehouse-to-warehouse clause arises because, during the transit of goods from a warehouse to another, there is an increased risk of injury or loss. Depending on the methods and methods of transport, goods can be handled multiple times and can be subject to multiple forms of damage or theft. Airlines, freight companies, warehouses, and railroads all present varying levels of risk to goods that are shipped from warehouse to warehouse.
Large commercial enterprises such as manufacturers will usually opt for commercial insurance coverage that includes a warehouse-to-warehouse clause. Without this clause, the manufacturer will not be compensated for any losses that may occur in transit between warehouses. Depending on the selection of clauses, the warehouse-to-warehouse clause can cover losses that stem from any of these transportation methods.
A warehouse-to-warehouse clause will typically be limited by certain criteria such as the value of the goods, the destinations of the warehouses, the selection of transportation methods, etc. Many insurers will also limit the amount of coverage provided in warehouse-to-warehouse clauses. For example, the coverage may only apply up to a certain amount per shipment.
In order for a warehouse-to-warehouse clause to be effective, it is important to keep detailed records of all of the shipments that occur. Detailed records that include the date of shipment, type of goods shipped, method of shipment, and the destinations of the shipment should be kept. This information is necessary in order to prove that the shipment occurred, and to provide the necessary evidence to the insurer in the event of a claim.
In summary, a warehouse-to-warehouse clause is an important element of a commercial insurance policy. Its primary purpose is to provide financial protection in the event of losses while goods are being shipped between warehouses. Large commercial enterprises such as manufacturers typically pay for insurance policies that include a warehouse-to-warehouse clause. Detailed records of all shipments should also be kept in order to support the legitimacy of the claim in the event of a loss.