Cold Storage Facility Insurance
Cold Storage Facility Insurance is a specialist commercial property insurance solution designed to protect cold storage warehouses, refrigerated storage facilities, freezer warehouses, chilled distribution centres, temperature-controlled buildings, and other specialist storage properties against a wide range of property, liability, and financial risks.
Cold storage facilities have unique insurance requirements because they rely on refrigeration systems, temperature controls, specialist insulation, electrical infrastructure, and other essential building equipment. Damage to the property or failure of key systems can result in significant repair costs, business disruption, and potential loss of rental income.
A tailored Cold Storage Facility Insurance policy can help protect the building, landlord-owned assets, rental income, and property owners’ liabilities, subject to the policy terms, conditions, exclusions, and limits.
Whether you own a single cold storage facility or a portfolio of temperature-controlled properties, specialist insurance can be tailored to your property’s individual requirements.
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INTRODUCTION
What is Cold Storage Facility Insurance?
Cold Storage Facility Insurance is specialist commercial property insurance designed for owners, landlords, investors, and property companies with refrigerated and temperature-controlled storage facilities.
Cold storage properties can include:
- Cold storage warehouses
- Chilled storage facilities
- Frozen food warehouses
- Freezer storage facilities
- Refrigerated warehouses
- Temperature-controlled distribution centres
- Food storage facilities
- Pharmaceutical storage buildings
- Cold chain logistics properties
- Refrigerated storage portfolios
A specialist policy can help protect the physical building together with the property owner’s financial interests.
Depending on the insurer and policy selected, cover may include:
- Commercial Buildings Insurance
- Property Owners’ Liability
- Loss of Rent Insurance
- Landlord-Owned Contents
- Equipment Breakdown Cover
- Legal Expenses Cover
- Terrorism Cover
- Accidental Damage Cover
The level of cover required will depend on factors such as the property’s construction, refrigeration systems, occupancy, rebuild value, location, use, security arrangements, and overall risk profile.
COVERAGE
What Does Cold Storage Facility Insurance Cover?
Who Needs This
Who Needs Cold Storage Insurance?
Why Is Cold Storage Facility Insurance Important?
Cold storage facilities depend on specialist refrigeration, electrical, insulation, and temperature-control systems to maintain the required conditions within the property.
Potential risks may include:
- Fire and smoke damage
- Flooding
- Escape of water
- Storm damage
- Refrigeration system failure
- Equipment breakdown
- Electrical damage
- Theft
- Malicious damage
- Structural damage
- Temperature-control failure
- Loss of rental income
- Property owners’ liability claims
A significant insured event could make part or all of a cold storage facility unusable, potentially resulting in substantial repair costs and disruption to tenants.
Cold Storage Facility Insurance can help protect both the property and the owner’s long-term commercial investment, subject to the terms and conditions of the policy.
Protecting Your Cold Storage Facility
Commercial Buildings Insurance is designed to protect the physical structure of your cold storage property against insured events.
Depending on the policy, cover may include:
- Roofs
- Walls
- Foundations
- Floors
- Insulated panels
- Cold rooms
- Freezer rooms
- Refrigerated storage areas
- Loading bays
- Offices
- Reception areas
- Staff facilities
- Electrical installations
- Plumbing systems
- Permanent fixtures and fittings
- Security gates
- Boundary fencing
- Car parks
- External structures
The building should generally be insured for its full rebuild or reinstatement cost rather than its market value.
For specialist cold storage facilities, obtaining an accurate reinstatement valuation can help reduce the risk of underinsurance and ensure that the declared sum insured is appropriate for the property.
Protection Against Third-Party Claims
Property Owners’ Liability Insurance can help protect landlords and property owners if a tenant, visitor, contractor, delivery driver, or member of the public suffers an injury or property damage connected with the insured premises.
Potential incidents may include:
- Slips and trips
- Wet or icy surfaces
- Defective flooring
- Falling building materials
- Loading bay incidents
- Vehicle access incidents
- Faulty external lighting
- Damage affecting neighbouring properties
The level of liability cover available will depend on the policy selected and the insurer’s requirements.
Protecting Cold Storage Rental Income
Many cold storage facilities are occupied by food businesses, logistics companies, retailers, wholesalers, manufacturers, and other commercial tenants.
If an insured event causes significant damage and the premises become partially or completely unusable, rental income could be affected while repairs or rebuilding work are carried out.
Loss of Rent Insurance may help protect eligible rental income during the reinstatement period following an insured event.
This cover may be particularly valuable for:
- Cold storage landlords
- Refrigerated warehouse owners
- Logistics property investors
- Commercial property companies
- Temperature-controlled property portfolios
The appropriate indemnity period should reflect the estimated time required to repair or reinstate the property, taking into account the specialist nature of the building.
Specialist Cover for Temperature-Controlled Buildings
We can help arrange insurance for a wide range of cold storage and temperature-controlled properties, including:
- Chilled warehouses
- Frozen food storage facilities
- Freezer warehouses
- Refrigerated storage buildings
- Cold rooms
- Temperature-controlled warehouses
- Food distribution facilities
- Pharmaceutical storage properties
- Cold chain logistics facilities
- Multi-site cold storage portfolios
Every cold storage property has different construction, refrigeration, occupancy, storage, and operational arrangements.
For this reason, a specialist approach can help ensure the insurance is considered around the specific characteristics and risks of the property.
Protecting Specialist Building Equipment
Cold storage facilities can depend heavily on specialist refrigeration and temperature-control equipment.
This may include:
- Refrigeration units
- Compressors
- Cooling systems
- Temperature monitoring systems
- Control panels
- Backup systems
- Refrigerated doors
- Specialist ventilation systems
- Electrical control equipment
- Temperature-control machinery
Where equipment forms part of the property owner’s insured assets, its value, ownership, and nature should be accurately disclosed when arranging cover.
Equipment Breakdown Insurance may also be considered where appropriate.
Protection for Refrigeration Equipment
Refrigeration or electrical equipment failure can potentially cause significant disruption to a temperature-controlled property.
Depending on the insurer and policy, Equipment Breakdown Cover may help protect eligible equipment against sudden and unforeseen mechanical or electrical breakdown.
This may be particularly relevant for:
- Refrigeration systems
- Compressors
- Electrical equipment
- Control systems
- Cooling equipment
- Temperature-control machinery
The exact equipment covered and circumstances insured will depend on the individual policy wording, exclusions, limits, and conditions.
What About Goods Stored in Cold Storage?
A property owner’s Cold Storage Facility Insurance policy generally protects the building and the owner’s property-related interests rather than automatically covering tenants’ or customers’ stock.
Stored goods may require separate stock, contents, or goods-in-storage insurance depending on who owns the goods and the contractual arrangements between the property owner, operator, tenant, and customers.
Examples of goods that may be stored in temperature-controlled facilities include:
- Frozen food
- Chilled food
- Meat and seafood
- Dairy products
- Fruit and vegetables
- Pharmaceuticals
- Medical products
- Retail stock
- Perishable goods
The type, value, and nature of goods stored can affect the overall insurance risk and should be accurately disclosed when arranging cover.
If you own the goods stored within the facility, separate contents or stock insurance may need to be considered.
Protecting Cold Storage Facilities
Security is an important consideration for cold storage and refrigerated warehouse properties.
Facilities may use:
- CCTV
- Intruder alarms
- Security gates
- Electronic access control
- Perimeter fencing
- Security lighting
- Security personnel
- Automatic barriers
- Controlled vehicle access
Insurers may apply specific security requirements or conditions depending on the property’s risk profile.
Any existing security arrangements should be accurately disclosed when arranging insurance.
Insurance for Vacant Cold Storage Facilities
Vacant cold storage facilities can present different insurance risks from occupied properties, particularly where refrigeration, electrical, water, and other building systems are no longer operating under normal conditions.
Potential concerns may include:
- Theft
- Vandalism
- Fire
- Escape of water
- Malicious damage
- Equipment deterioration
- Trespassing
- Squatting
- Delayed discovery of damage
Standard commercial property policies may impose restrictions once a property has been unoccupied for a specified period.
Specialist Unoccupied Commercial Property Insurance may be required where a cold storage facility is vacant, awaiting refurbishment, redevelopment, sale, or a new tenant.
The property’s occupancy status and the operational condition of its refrigeration and building systems should always be disclosed when arranging insurance.
Insurance for Multiple Cold Storage Properties
Owners of several cold storage or temperature-controlled properties may benefit from a portfolio insurance arrangement.
Portfolio Insurance may provide:
- One renewal date
- Simplified administration
- Coordinated cover
- Tailored protection across multiple locations
- Flexible policy management
Availability will depend on factors such as the number of properties, locations, values, construction, occupancy, use, claims history, and overall risk profile of the portfolio.
Additional Cold Storage Insurance Options
Depending on the insurer and property, additional cover may include:
- Terrorism Insurance
- Legal Expenses Insurance
- Landlord Contents Cover
- Glass Cover
- Accidental Damage Cover
- Equipment Breakdown Cover
- Engineering Inspection Cover
- Environmental Liability Insurance
- Directors’ and Officers’ Insurance
- Cyber Insurance
The availability, limits, exclusions, and terms of these covers will vary between insurers.
What Can Affect Cold Storage Facility Insurance Premiums?
Premiums may depend on a range of factors, including:
- Property location
- Building construction
- Rebuild value
- Property size
- Type of cold storage facility
- Refrigeration systems
- Temperature requirements
- Types of goods stored
- Security arrangements
- Fire-protection measures
- Flood exposure
- Claims history
- Sum insured
- Selected policy limits
- Loss of Rent indemnity period
- Occupancy and tenant arrangements
- Condition and age of specialist equipment
Each cold storage facility is assessed individually, and premiums will reflect the property’s overall risk profile and the level of cover required.
HOW WE ARE DIFFERENT
Why Choose WS Insurance?
Frequently Asked Questions
Cold Storage Facility Insurance is specialist commercial property insurance designed to protect owners and landlords of cold storage, refrigerated, freezer, chilled, and temperature-controlled properties against a range of insured property, liability, and financial risks.
Depending on the insurer, cover may be available for chilled warehouses, freezer warehouses, refrigerated storage facilities, cold rooms, temperature-controlled distribution centres, food storage buildings, pharmaceutical storage properties, and other specialist cold storage facilities.
Not necessarily. A property owner’s policy generally covers the building and the owner’s insured interests rather than tenants’ or customers’ stock. Separate stock, contents, or goods-in-storage insurance may be required depending on the circumstances.
Potentially. Refrigeration equipment owned by the property owner may be considered under the appropriate policy. Equipment Breakdown Cover may also be available for eligible machinery and systems, subject to the insurer’s terms, conditions, exclusions, and limits.
Loss of Rent Insurance may be available to protect eligible rental income following an insured event that makes the property partially or completely unusable. The indemnity period and level of cover should reflect the property’s circumstances.
Property Owners’ Liability Insurance may be included or available as an optional section of a commercial property policy. It can help protect the property owner against eligible third-party injury or property damage claims arising from the insured premises.
Yes, specialist insurance may be available for vacant cold storage facilities. However, unoccupied properties can have different risks and policy requirements, so the insurer should be informed about the property’s occupancy status.
Potentially. Owners of multiple refrigerated or temperature-controlled properties may be able to arrange portfolio insurance, depending on the number, location, value, construction, occupancy, and risk profile of the properties.
Terrorism Insurance may be available as an additional or separate cover depending on the property, location, insurer, and policy selected. It is not necessarily included within every standard commercial property policy.
Get Your Cold Storage Facility Insurance Quote
Whether you own a chilled warehouse, freezer facility, refrigerated storage building, temperature-controlled distribution centre, or a portfolio of cold storage properties, WS Insurance can help you explore suitable insurance options.
Compare specialist Cold Storage Facility Insurance and arrange tailored protection for your buildings, rental income, liabilities, specialist equipment, and long-term commercial property investment.