Independent insurance agents interested in growing their commercial customer base should consider adding self-storage risks to their portfolio. Self-storage is a growing niche with a need for specialty coverage.
The Rise of Self-Storage
The self-storage industry is growing at a rapid pace. Consider the following industry facts and trends:
- It took the self-storage industry over 25 years to build its first billion square feet of space, but it added the second billion square feet in only 8 years.
- There is a total U.S. self-storage space capacity of about 21 square feet per American household.
- Industry estimates in 2011 projected that over 50,000 self-storage facilities are currently operating in the U.S.
- U.S self-storage rental revenues were estimated at over $22 billion dollars in 2010.
- As baby boomers, the most populous age-based demographic, reach retirement age, they will tend to move into smaller homes or condominiums thereby becoming prime customers for self-storage businesses.
Self-storage operations need solid business insurance coverage as well as specialty coverages to protect against the unique risks they face. Many self-storage insureds are not aware that these specialty coverages exist; there is a real opportunity for agents to serve self-storage businesses as a valuable advisor.
MiniCo offers critical specialty coverages including:
- Customers Goods Legal Liability: Covers tenants’ property losses caused by negligent acts of the self-storage operator. Some competitors do not offer this coverage.
- Sale & Disposal Liability: Provides coverage for negligent acts of a self-storage operator when disposing of a tenant’s property. This is another specialty coverage that competitors may not offer.
- Limited Pollutant Removal: Provides coverage for the cost to remove “pollutants” from or detoxify a storage space when required by a statutory authority. Coverage is afforded to all storage spaces at the covered facility, not just to units that are rented after the inception date of coverage.
- Business Coverage and Business Income
- Business Liability
- Optional Coverages: System protection, earthquake, employment practices liability, data compromise coverage, and employee resident manager’s personal liability.
MiniCo is committed to continually enhancing ease of doing business for independent agents as well as offering helpful tools and resources. Contact us today for more information.