38 | MEMBER SERVICES UPDATE
Importance of covering By Graeme Armstead, Principal, Hunt & Hunt Lawyers
So the storer has packed all their boxes and moved every asset they own into your facility. The unit isn’t big enough to compact their entire life into the unit so they have decided what to keep and what to throw out, meaning the goods they have in a specific unit, are of great value to them. The next step is managing the risk. INSURANCE CONSIDERATIONS – RISK MANAGEMENT Customer Goods Insurance is an exceptionally inexpensive way to create peace of mind for every storer. Using the SSAA Standard agreement as a basis, there are three differing options for each storer to consider: l Insurance provided by the Facility; l Storer’s own insurance; or l Self insuring of the goods. Each option has positives and negatives to consider prior to ticking that small box, and it is imperative to provide storers with this knowledge at the time of entering into the agreement.
WHAT IS IT? Put simply, self storage insurance is both the facility’s and storer’s safety net in case anything happens to goods stored in a storage unit. In reality, the likelihood of something happening to the goods in a secure unit is low. Most facilities are purpose built for the job of secure storage with additional security measures. However, it is this small chance or when something simply goes
INSIDER 110 NOVEMBER / DECEMBER 2019
wrong that the investment of insurance becomes your greatest idea yet. Customer Goods Insurance covers specific and defined events that will sit outside the control of the facility. When signing up to an insurance policy, the Product Disclosure Statement must be reviewed to ensure that not only is there adequate coverage, but that you are not excessively covering events that will increase your premiums – there is no need to have a policy that covers damage from a volcanic eruption in Australia for example. Similar to the standard agreement which the facility utilises to sign up a storer, there a range of exclusions which may be evident in insurance policies. These can include exclusions for damage arising from vermin, mould, mildew, spontaneous combustion and climatic changes.
LAPSING OF A STORER’S POLICY Where the storer has elected to take out their own insurance, they will be named in the policy. In normal circumstances, an insurance policy will continue to run unless it is not renewed. Where
a storer has indicated that they are purchasing their own insurance, it is the responsibility of the storer to ensure that premiums are paid when due and that the policy does not lapse.
FACILITY’S CONCERNS FOR BUILDING AND CONTENTS INSURANCE Whilst the standard SSAA template agreement provides for protection from certain claims, it does not remove the facility’s liability entirely. Acting as the General Legal Counsel of Self Storage Australia, we have encountered a number of claims involving potential breaches of the Australian Consumer Law and alleged incidents of negligence. It is important to note that the Australian Consumer Law holds a number of guarantees to ensure the service being provided is free from defects and fit for purpose. These guarantees are non-excludable, meaning they cannot be removed by way of a contractual agreement. With reference to negligence, claims of this nature will arise where the facility
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