What Does Warehouse Bond Mean?
A warehouse bond is a type of guarantee or surety bond that protects a warehouse operator or facility owner against financial losses arising from claims for damages filed by owners of goods that become damaged or lost while stored in the warehouse. It provides coverage up to the extent of the value of the goods in storage.
Insuranceopedia Explains Warehouse Bond
A warehouse bond usually runs for a year and may be renewed annually. The annual premium payment to the surety (insurance) company issuing the bond is computed as a percentage of the total value of the goods in storage. Some warehouse bonds include protection to property owners against lawsuits arising from injury claims. If, for instance, a warehouse employee or another party suffers an injury while inside the warehouse, the bond can answer for the damages.