ISO Warehouse Operators Legal Liability Coverage Form

ISO WAREHOUSE OPERATORS LEGAL LIABILITY COVERAGE FORM ANALYSIS

(April 2018)

 

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INTRODUCTION

The Insurance Services Office (ISO) Warehouse Operators Legal Liability Coverage Form is more of a liability coverage form than a property coverage form because it protects the named insured for only its legal liability to its customers. Coverage applies only if customers’ property is damaged and the warehouse operator’s negligence caused the damage. Public, private, bonded, and specialized warehouses may purchase this coverage.

POLICY CONSTRUCTION

Warehouse Operators Legal Liability Coverage requires at least the following six forms:

Related Article: IL 00 17–Common Policy Conditions Analysis

Related Article: CM 00 01–Commercial Inland Marine Conditions

IH DS 81–WAREHOUSE OPERATORS LEGAL LIABILITY DECLARATIONS

The advisory Warehouse Operators Legal Liability Declarations does not have spaces for the named insured, its mailing address, other named insured information, the policy period, or the description of the insured business. That information is on the Common Policy Declarations. IH DS 81 contains the following information:

Insurance Company and Producer Name

The name of the insurance company that provides the coverage and the name of the agent or broker that produces the business are entered in the spaces provided.

Limits of Insurance

There are spaces to enter three different warehouse locations and a limit associated with that particular warehouse. If there are additional locations, a separate endorsement listing those locations and each warehouse’s associated limit must be attached.

When the Yes box is checked under the Liability Assumed under Any Contract or Agreement for a listed warehouse, item b. in the Property Not Covered section is eliminated.

Deductible

This section has a space to enter the amount of deductible that applies.

Rates and Premiums

The following is entered when coverage is written on a non-reporting basis:

The following is entered when coverage is written on a reporting basis:

Special Provisions

Any special provisions are entered in the space provided.

IH 00 81–WAREHOUSE OPERATORS LEGAL LIABILITY COVERAGE FORM ANALYSIS

This analysis is of the 12 13 edition. Changes from the previous edition are in bold print.

Introduction

This section encourages the careful reading of the entire coverage form to determine what is covered, what is not covered, rights, and duties. It defines we, us, and our as the insurance company that provides this insurance coverage. It also defines you and your as the named insured on the declarations. The reader is also pointed to the Definitions section because certain words or terms used in the form have a more broadened or restricted meaning.

A. Coverage

1. Insuring Agreement

The insurance company pays the amounts for which the named insured is legally obligated to pay due to loss or damage to covered property that belongs to others but only when caused by a covered cause of loss. The obligation must be a result of the named insured’s warehouse operation.

The insurance company has both the right and the duty to defend the named insured when a suit is presented against it. The right and duty apply only if this insurance covers the damages the suit claims. When claims and suits are presented to the insurance company, only the company has the option to investigate and settle them.

The following two limitations apply:

a. Section C. Limits of Insurance explains the amount the insurance company pays for damages.

b. The insurance company’s right and duty to defend ends as soon as it uses up the limit of insurance paying judgments or settlements.

Note: The wording in this insuring agreement is very similar to that used in the Commercial General Liability Coverage Form because the coverage being provided is more of third-party coverage than a first party coverage.

2. Covered Property

Covered property must meet all of the following criteria:

Note: Covered property is extremely broad. If property of others is in the named insured’s warehouse, it is covered property. The only restrictions are those types of property listed in A. Coverage 3. Property Not Covered.

3. Property Not Covered

The following described property is excluded:

a. Accounts, bills, currency, deeds, money, notes, securities, evidences of debt, plans, manuscripts, or other valuable papers.

Note: These items should be stored in a financial institution or other more secured locations because of their value and confidentially required. 

b. Property for which the named insured has assumed liability under any other contract or agreement that is more than the liability the law imposes on it as a warehouse operator or bailee. However, there is an exception. This restriction does not apply at the listed location(s) if the box on the declarations for Liability Assumed under Any Contract or Agreement for that listed location is checked.

Note: This coverage form insures only the named insured's legal liability as a warehouse operator. If the named insured wants to extend coverage beyond legal liability, there are two methods that can be selected. The exception may be for only a single contract. This must be provided to the insurance company and an endorsement added to the policy for that one contract. Another way is to select the Liability Assumed under Any Contract or Agreement. The insurance company will evaluate the request, review contracts in which that approach was taken, and charge an additional premium for the increased exposure. The limit must also reflect the higher value.

 

Example: Walt's Warehousing uses a standard warehouse receipt. A new customer, AAA Fabrics, requests full coverage rather than the legal liability coverage under the standard receipt. AAA is willing to pay a higher cost for the coverage. Walt’s submits the contract to the insurance company, receives approval, pays the additional premium, and then signs the contract to accept full coverage. If Walt’s already had the “x” in the “yes” box for Liability Assumed Under Any contract of Agreement, he would not have needed to submit the contract prior.

 

c. Property for which the named insured has been released from liability

 

TractorTrailer

Example: AAA Fabric’s representative asks Walt’s to load part of its stored property into the waiting tractor-trailer unit. Walt explains that it does not usually provide such service to customers. However, Walt agrees to have an off-duty employee assist AAA’s representative if he signs a release of liability for the service. The AAA representative signs the release. There is no coverage under this coverage form when a package is damaged while it is being loaded.

 

d. Furs or fur garments, jewelry, watches, precious stones, gold, platinum, silver, other precious metals, and alloys, or fine arts

e. Property held as storage-in-transit under an applicable bill of lading the named insured issued

Note: Storage-in-transit refers to temporarily storing certain property pending further transportation. For example, this may have to be done if a new home is not yet ready to be occupied and the household items from the previous home must be stored until the house is ready. This service must be specifically requested from the moving company and the amount of time cannot be more than a set number of days that the insurance company determines. There are additional charges on top of the warehouse handling and final delivery charges. Property stored-in-transit is excluded if the warehouse operator is the carrier and has issued the bill of lading.

f. Manufactured tobacco, liquor, wine, or other alcoholic beverages.

Note: This type of property requires special coverage and valuation treatment available under specialized warehouse coverage forms or certain ISO coverage forms.

Related Articles:

CP 99 05–Distilled Spirits and Wines Market Value

CP 99 10–Alcoholic Beverages Tax Exclusion

CP 00 80–Tobacco Sales Warehouse Coverage Form

g. Commodities that must be refrigerated

Note: This type of property requires special coverage and valuation treatment available under specialized warehouse coverage forms.

h. Live animals

i. Contraband. Any property that is illegal for the named insured to own or that is in illegal trade or transportation is not covered.

4. Covered Causes of Loss

Covered causes of loss are direct physical loss or damage to covered property with the exception of causes of loss that are listed in the exclusions section.

5. Additional Coverages

Some of the following additional coverages are in addition to the limits of insurance.

a. Debris Removal

A property damage loss usually creates debris that must be removed. The insurance company pays the cost of removing the debris of a covered loss. The expenses must be reported to the insurance company in writing within 180 days of the date of loss. The most paid is 25% of the sum of the following:

This coverage does not apply to costs to extract pollutants from land or water or to remove, restore or replace polluted land or water.

b. Preservation of Property

Covered property may need to be moved from an insured location in order to keep it from being damaged by a covered cause of loss. In that case, the insurance company pays for any direct loss or damage such property sustains during the move. In addition, coverage applies at the location where the property is stored for up to 30 days after the date it was moved there.

This additional coverage does not increase the limit of insurance.

Notes: There are several important points to consider:

The property removed must be moved back to the covered location or the temporary location must be added to the policy within 30 days from the date of the move. Otherwise, all coverage ends after 30 days.

c. Supplementary Payments

Note: These payments are common in liability coverage forms but not in property coverage forms. As with liability coverage forms, a number of costs are incurred in the handling, settlement, defense of and adjustment of claims. This Additional Coverage describes which costs are paid and any limits that are applied to them.

The insurance company pays the following charges only when they are a part of a claim investigation or settlement. It also pays the charges for any suit that it defends. All payments are in addition to the limits of insurance that apply and do not reduce the limit of insurance available to pay for the claim.

Note: This means that the insurance company must pay interest on its part of the judgment and all other parties’ part of the judgment before it pays the amount required. Once this insurance pays, any interest that accrues on the remainder of the judgment becomes the responsibility of those other parties.

6. Coverage Extension–Additional Insureds

The named insured may be a partnership or corporation. In that case, partners, executive officers, trustees, directors, and stockholders are considered named insureds but only to the extent of their duties as such.

B. Exclusions

1. Primary Exclusions

The first group of exclusions applies to the named insured’s liability for damages due to the following causes of loss. They apply regardless of whether or not the damage widespread. Subject to specific exceptions, the loss or damage each causes is totally excluded, regardless of any other cause or event that contributes to a loss, either concurrently or in any other sequence.

a. Governmental Action

This exclusion applies to the legal and authorized seizure or destruction of property by a government entity’s order. There is one exception. Loss or damage that is caused when the governmental entity orders property to be destroyed is covered if used as a method to prevent a fire from spreading is covered. However, this exception applies only if the fire being contained would have been a covered fire under this coverage form.

b. Nuclear Hazard

Nuclear reaction, radiation, or radioactive contamination is not covered. There is an exception. If a fire results from the nuclear reaction, radiation or radioactive contamination there is coverage for the direct loss or damage caused by that fire.

c. War and Military Action

This exclusion lists three specific warlike activities.

2. Secondary Exclusions

The second group of exclusions applies to the liability the named insured has for loss or damage caused by or that result from any of the following loss events. Some of these exclusions have exceptions, conditions, or limitations that should be noted and reviewed carefully.

a. Delay, loss of use, and loss of market

These are consequential or indirect losses that develop as a result of a direct loss or damage.

b. Unexplained disappearance

When covered property is gone and there is no obvious cause or explanation of what happened to it.

c. Shortage found upon taking inventory

Any loss that is discovered as a result of an inventory shortage and there is no explanation as to what happened to the property, similar to unexplained disappearance. This is sometimes referred to as "inventory shrinkage."

d. Dishonest or criminal acts (12 13 changes)

These are any dishonest or criminal acts that the named insured, its partners, employees, temporary employees, leased workers, officers, directors, trustees, authorized representatives, or members and managers of a limited liability company commit. This also includes theft.

Such acts committed by anyone with an interest in the property, their employees, temporary employees, leased workers, or authorized representatives who act alone or who act in collusion with other parties or with each other are also excluded. This exclusion also applies whether or not the acts take place during regular working hours.

This exclusion does not apply to acts of destruction by the named insured’s employees, temporary employees, leased workers, or authorized representatives. However, there is no coverage for theft by the named insured’s employees, temporary employees, leased workers, or authorized representatives.

The 12 13 edition removed the part of the exclusion in the previous edition that applied to dishonest or criminal acts committed by anyone entrusted with the property for any reason.

e. Breakdown of refrigeration equipment

Loss or damage to covered property that is due to refrigerating equipment breaking down.

f. Forged bills of lading, loading, shipping, or warehouse receipts

Loss that occurs because of forged or fraudulent bills of lading, loading, shipping, or warehouse receipts.

Note: This exclusion is closely related to the dishonest or criminal acts exclusion and broadens it. It applies to any party, whether or not it has an interest in the covered property.

 

Example: Monica presents the warehouse receipt to Henry at Walt’s Warehouse and asks for only certain containers owned by Jalopy, Inc. Henry provides the requested property and documents the encounter. A month later Patrick arrives with a warehouse receipt and asks for the same items. He is informed that the items had been removed the prior month. Jalopy, Inc. then sues Walt’s Warehouse because Jalopy had never requested that those items be removed. Walt’s is not covered because a forged warehouse receipt had been presented and that resulted in the theft of the items. 

 

g. Strikers, locked-out workers, persons taking part in labor disturbances, or riot and civil commotion

Loss or damage to covered property resulting from any of these actions is not covered.

Note: This exclusion is closely related to the dishonest or criminal acts exclusion. It is broadened to include any public acts that involve riot and other civil disturbances.

h. Pollution

There is no coverage for loss caused by or that results from any release, discharge, seepage, migration, dispersal, or escape of pollutants. There are two exceptions:

Note: Section F. Definitions 2. Specified Causes of Loss has a list of the covered causes of loss that apply to the exception to this exclusion.

i. Processing or work upon the property

This is loss or damage caused by or that results from the actual processing or work done on the covered property. There is one exception. If the processing or work done causes a fire or explosion to occur the loss or damage that fire or explosion causes is covered. One limitation is that this coverage form must otherwise cover the fire or explosion.

j. Artificially generated electrical, magnetic, or electromagnetic energy

Loss or damage that is caused by or that results from artificially generated electrical, magnetic, or electromagnetic energy damaging, disturbing, disrupting, or interfering with any of the following:

Examples of this excluded energy are electrical current, charges a magnetic or electromagnetic field produces, and microwaves but are not limited to just these.

There are two exceptions:

k. Voluntary parting

When covered property is transferred to another person or place because unauthorized instructions were received to do so.

l. Unauthorized instructions

When covered property is transferred to another person or place because of unauthorized instructions to do so.

m. Neglect

Neglect on an insured’s part to do take reasonable measures to preserve and protect covered property from subsequent damage during and after the time of loss.

n. Theft (12 13 addition)

Theft by any person the named insured entrusts covered property to for any reason, whether they act alone or act in collusion with any other party. This exclusion applies 24 hours a day/7 days a week. There is one exception. Covered property that is in a carrier for hire’s care, custody, or control is not subject to this exclusion.

3. Other Exclusions

This group of exclusions applies to the named insured’s liability for loss or damage caused by or that result from any of the following loss events. In every case, if loss or damage by a covered cause of loss occurs as a result of one of these excluded events, coverage does apply for the named insured’s liability for the loss or damage the resulting covered cause of loss causes. The insurance company does not pay for any loss or damage caused by or that results from any of these events.

a. Wear and tear, depreciation

This is loss or damage due to wear, tear, and depreciation.

Notes:

Wear and tear is damage that occurs naturally as a result of aging or normal wear.

Depreciation is a loss of value due to wear.

b. Any quality in the property

These are any qualities in the property that cause it to destroy or damage itself.

Note: An example is a loss or damage caused by hidden or latent defects in the property.

c. Mechanical breakdown

This is loss or damage caused by or that results from machines, tools, or mechanisms failing to operate or function properly.

d. Insects, vermin, or rodents

This is loss or damage to covered property caused by or that results from insects, vermin, or rodents.

Note: Some examples are damage from mice, rats, cockroaches, squirrels, beavers, spiders, ants, centipedes, and ticks. Each is characterized by destructive habits that cause damage, such as gnawing and nibbling.

e. Corrosion, rust, dampness, or extremes of temperature

This is corrosion or rust, dampness, or extremes of temperature that cause loss or damage to covered property.

Notes:

Rust and corrosion are low-temperature oxidation processes that result in deterioration over time due to inactivity or neglect.

Dampness and temperature extremes can affect the oxidation process that affects different forms of property. They can also have other effects on the same and other forms of property.

C. Limits of Insurance

The most the insurance company pays for loss or damage in a single occurrence is the limit of insurance on the declarations for the applicable coverage.

Payments under Additional Coverages–Preservation of Property do not increase the limit of insurance that applies.

Payments under Additional Coverages–Debris Removal do not increase the limit of insurance that applies. However an additional per occurrence $10,000 is available if either of the following situations exists:

However, this is limited to no more than $10,000 and is limited to only debris removal expense.

The limits of insurance for all other Additional Coverages are additional amounts of insurance.

D. Deductible

The insurance company does not pay for loss or damage until the amount of the adjusted loss or damage (before capping with the limit of insurance that applies) exceeds the deductible on the declarations. It then pays the amount of the adjusted loss or damage that exceeds the deductible up to the applicable limit of insurance.

E. Additional Conditions

1. Duties in the Event of Loss

This loss condition replaces Duties in the Event of Loss in the Commercial Inland Marine Conditions.

a. The named insured must promptly notify the insurance company of any accident that may result in a claim. The notice should include details as to how, when, and where the accident occurred and the names and addresses of any witnesses. Notice of an accident is not the same as a notice of a claim.

b. The named insured must promptly notify the insurance company if a claim is made or a suit is brought against it.

c. If a claim is made or a suit is brought, information that is much more detailed is required. The named insured must do all of the following:

d. The named insured has the right to make payments, assume obligations, and incur expenses related to any claim under this policy. However, if it does so without the express consent of the insurance company the named insured is doing so at its own expense.

Note: The named insured has no right to expose the insurance company to expenses or obligations.

2. Other Condition

This condition is in addition to the Commercial Inland Marine Conditions and the Common Policy Conditions.

Coverage Territory

The coverage territory is the United States of America, its territories and possessions, Puerto Rico, and Canada. This includes property that is shipped by air within and between these points.

F. Definitions

There are three definitions.

1. Pollutants

These are any solid, liquid, gaseous, or thermal irritants or contaminants. Pollutants also include smoke, vapor, soot, fumes, acids, alkalis, chemicals, or waste. Waste is any material intended to be recycled, reconditioned, or reclaimed.

2. Specified causes of loss

The named perils of fire, lightning, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, civil commotion, vandalism, leakage from fire extinguishing equipment, sinkhole collapse, volcanic action, falling objects, weight of ice, sleet, or snow and water damage. Two terms need further explanation:

3. Suit

A civil action or legal proceeding that alleges damages because of property damage to covered property. Arbitration proceedings claiming such damages and any other alternative dispute resolution proceedings are also considered suit but only if the named insured is required to submit to them or it receives permission from the insurance company to submit to them.

ENDORSEMENTS

ISO has not developed any specific endorsements for exclusive use with the Warehouse Operators Legal Liability Coverage Form. ISO has developed three other endorsements that can be used to respond to specific situations.

IH 99 11–Gross Receipts Reporting Form

This endorsement converts the coverage to a daily, weekly, monthly, quarterly, or policy year reporting form, depending on the terms of the coverage form.

Note: Gross receipts are cumulative values instead of an average of periodic values. As a result, the rates used for this reporting arrangement are the annual rates instead of a percentage of the annual rates.

IH 99 19–Additional Covered Property

This endorsement is used to include coverage for types of property ordinarily excluded.

IH 99 20–Additional Property Not Covered

This endorsement is used to exclude certain types of property the coverage form insures.

UNDERWRITING CONSIDERATIONS

Identify the Type of Warehouse

This is the first part of underwriting the exposure.

Nearly all warehouses fall into one of four categories:

Identify the Services Provided

Many warehouses exist as standalone operations but recently more are offering services beyond simply storage. One example is known as third-party logistics. It involves integrating transportation, storage, handling, and processing goods from the point of manufacture to the final location for sale or distribution as efficiently and cost-effectively as possible. In addition, logistics has become part of the world of electronic commerce. This introduces time element issues that have not been historically a part of warehousing or transportation insurance. Logistical services providers are integrated managers of services (some or all of which may be outsourced to others).

Other services provided may include pick up, packing services in addition to cross-docking, and processing. All services provided to move goods may be combined under one contract for services or bill of lading.

These additional services introduce additional exposures that must be evaluated.

Note: Cross-docking referred to above is a practice in logistics of unloading goods from an incoming semi-trailer truck or rail car and re-loading them on outbound trailers or rail cars with little or no storage in between. This is done to change the type of conveyance, to sort goods intended for different destinations, or to combine goods from different points of origin. In its purest form, it is done with little or no warehousing. In standard practice, many cross-docking operations require large staging areas where inbound goods are sorted, consolidated, and stored until the outbound shipment is loaded, complete, and ready to ship. Cross-dock distribution centers require less than a day to complete the staging. It is usually considered a warehouse if it takes longer. Cross-dock operations decrease inventory shortages by streamlining the flow of goods between the supplier and the manufacturer.

Evaluate the Risk

Several general factors are important to effectively and successfully underwrite warehousing risks.

Financial underwriting is a key element in underwriting warehouses. Past financial success effectively predicts future financial stability. In addition, a risk on good financial footing is less tempted to do business with clients that may be of questionable character and possibly involved with illegal or contraband property. Storing such property knowingly or not can jeopardize other stored property and the warehouse’s operation as a whole.

Experience is another key factor. The warehouse operator’s reputation, knowledge, and past experience are the elements that the party that has to store merchandise must consider when looking for warehousing service. The property stored should be as important to the warehouse operator as to the owner because it represents value and income to both parties. A general guideline to follow is that the warehouse operation has at least three years of experience.

Fire, theft, water damage, and negligent forklift operation are the most common causes of loss in warehousing operations. Fire is the first and most important cause of loss to consider. The traditional elements of construction, occupancy, protection, and exposure must be analyzed carefully and completely. Multi-story warehouses are common and these risks must have effective firebreaks between floors, minimizing vertical fire spread as much as possible. Stairways should be fully enclosed with fully operational rated fire doors and properly sealed elevators to prevent fire from spreading. Construction is critical. Frame construction should not exceed two stories. Electrical factors are crucial and extremely important, especially in specialized warehouses where refrigeration and other climate controls are required. Wiring must be up-to-date, enclosed in conduit, and appropriate for the occupancy and exposures that the operations conducted present. Extension cords or other temporary wiring devices should never be used. Warehouses should never have any current overrides in the circuit breakers or use improper fuses.

The type of goods stored is also a crucial element. Paint, aerosols, glues, and similar flammables must be isolated and segregated from the stock of general merchandise. Where possible, they should be stored in proper and approved containers. Additional temperature controls and extra fire suppression or extinguishing devices may be necessary. Such goods should be stored in completely separate and removed buildings far enough away from the general merchandise storage facilities so that both are not involved in a common fire event. Knowing the type of property stored, its characteristics, and how to deal with it effectively are critical to safe and effective warehousing operations.

Public fire protection is as important as the type of property stored. Fire department response time and public and private water supply availability are major considerations. The fire department available should be adequately staffed and equipped to handle a potentially major conflagration. Most warehouses are large and could overwhelm an under-manned and inadequately equipped department or one located too far away to get to a fire location quickly.

 

Private fire protection is equally important. It may be more important than public protection in some cases. Automatic sprinkler systems are needed if significant values are stored. Rack sprinkler systems and deluge systems should be considered in applications that require additional protective factors. Rate-of-rise heat detectors should be employed so that potential fire conditions can be monitored and responded to before a fire actually breaks out. Similarly, in cases of specialized warehouses that involve refrigeration equipment, refrigerated storage areas should have temperature alert systems to warn of impending changes before they actually occur.

Surrounding exposures must be evaluated, understood, and dealt with if possible and where necessary. Operations conducted in crowded urban surroundings could present an external loss potential that is more significant than what goes on inside the warehouse facility itself. A fire or conflagration in an adjacent building that the warehouse operator has no control over could destroy its own operations. These exposing occupancies must be recognized and measured to address the worst-case scenario and to determine what the warehouse operator should do to reduce or eliminate loss or damage to its own facility.

A large warehouse filled with a variety of interesting or attractive merchandise is a natural target for theft. The warehouse operator must take the appropriate steps to minimize access to the premises by unauthorized parties in order to reduce the chances of pilferage, shortages, and outright theft. All exterior points of access, including all doors, windows, skylights, and roof openings, must be protected with adequate locks and burglary and theft systems and alarms where necessary. In general, the type of goods stored determines the amount of premises protection and security required.

Goods should be stored on pallets as a minimum. The warehouse operator should do everything it can to keep them above floor level. The extent and value of property stored in basements, sub-basements, or otherwise below grade should be minimized and limited. Property that is highly susceptible to water damage should never be located near water or sewer lines. If basement storage is needed, it should be equipped with a water detection system.

It is hard to imagine anything more embarrassing, costly, and easy to avoid as a forklift damaging covered property. Forklifts must receive constant periodic preventive maintenance to ensure that they operate properly. Forklift operators should be experienced in handling the types of goods in a specific warehousing operation and receive periodically updated training to keep them sharp and to enhance their skills and abilities.

Legal liability does not include most catastrophic causes of loss, such as floods, earthquakes, or windstorms. Commonly referred to as acts of God, these causes are outside the warehouse operator’s responsibility. However, the warehouse operator still has responsibilities related to these causes that could involve them in legal liability loss situations. This coverage form insures these causes of loss. As a result, the insurance company must be certain that the warehouse operator takes a common sense approach in the way it conducts business to minimize the effects of these causes of loss if they occur. If flood is a factor, goods susceptible to water damage should be stored above grade. If earthquake is a factor, construction should be earthquake resistant or the goods stored inside should not be overly susceptible to damage if the building collapses because of an earthquake event. Construction should be such that the building can withstand a strong windstorm or rainstorm. Depending on the location, some external exposures to loss are more significant than others. The building’s construction (and the way business is conducted) should minimize or eliminate the chances of loss from that cause of loss as much as possible.

Warehouse Receipt

Coverage depends on the warehouse receipt’s language. Each receipt should be completed in a structured and consistent way that follows prescribed procedures to guarantee uniformity and accuracy. There is no coverage on goods stored without a warehouse receipt and nothing should be stored without one. Receipts should be duplicated and the duplicates stored off premises so that losses can be handled promptly and accurately if the copy kept at the premises is lost or destroyed. Both the customer and the insured should be able to produce their copies of the storage receipt if a loss occurs.