Insurance is a critical component of running a responsible RV storage business. The right coverage protects you from financial catastrophe while giving your customers confidence that they are storing their vehicles with a professional operation.
General Liability Insurance
General liability insurance protects your business against claims of bodily injury or property damage that occur on your premises. If a customer trips on your property, or if a gate malfunction damages a vehicle, general liability coverage responds to these claims. Most insurance professionals recommend a minimum of one million dollars in general liability coverage for RV storage operations.
Property Insurance
Property insurance covers the physical assets of your business including buildings, fences, gates, cameras, and other infrastructure. If a severe hailstorm damages your covered storage structures or a fire destroys your office building, property insurance pays for repairs or replacement.
In Colorado, coverage for weather-related events is particularly important. The Front Range is one of the most hail-prone regions in the country, and the damage from a severe storm can be substantial. Make sure your policy covers the specific weather risks common to your area.
Bailees Customer Insurance
Bailees insurance covers damage to customer property while it is in your care, custody, and control. Standard general liability policies typically exclude damage to property you are storing for others, making bailees coverage an important supplement. This coverage responds when stored vehicles are damaged by fire, theft, vandalism, or covered weather events.
Requiring Tenant Insurance
Most well-run RV storage facilities require tenants to maintain insurance on their stored vehicles and provide proof of coverage. This requirement is typically included in the storage agreement and protects both parties. Tenant insurance ensures that the vehicle owner has recourse for damage regardless of the cause.
Some facilities offer tenant insurance programs through partnerships with insurance providers. These programs simplify compliance for tenants and can generate additional revenue for the facility operator. Check with your insurance broker about available programs.
Workers Compensation
If you have employees, Colorado law requires workers compensation insurance. Even if you operate solo, consider voluntary coverage to protect yourself in case of injury while maintaining the facility. The physical nature of property management makes injuries a real possibility.