Insuring a Shipping Container: Theft, Weather & Liability

Before or after you purchase shipping containers, it's worth asking a simple question: who pays if something goes wrong? A container is tough, but theft, storms, fire and accidents still happen, and the contents are often worth more than the box.

Here's how insurance for containers typically works for homes and businesses, what to ask your insurer and how to reduce the risk. Planning to purchase shipping containers for your home or business? Check your cover before delivery day.

What can go wrong

• Theft of the contents, or occasionally the container itself
• Weather: flooding, falling trees, high winds
• Fire, from nearby structures or stored materials
• Damage on delivery or removal
• Liability: someone injured on or around the container

Insuring a container at home

Many homeowners policies cover other structures on your property, such as sheds and detached garages, and may cover a container the same way. Contents may be covered under your personal property cover.

Ask your insurer:

• Is a shipping container covered as an "other structure"?
• Are the contents covered, and up to what limit?
• Are there exclusions for theft from outbuildings?
• Does cover change if the container is used as an office or for business?
• Does a modified container, with power or plumbing, change anything?

Insuring a container for a business

Businesses usually need:

• Property insurance covering the container and its contents
• Inland marine or equipment cover for tools and equipment, especially on job sites
• General liability insurance for injuries on or near the container
• Business interruption cover if losing stored goods would affect your business

Contractors should check that tools stored in containers on job sites are covered, as some policies treat on-site storage differently.

Insuring a rented container

If you rent a container:

• The rental company usually owns and insures the container itself, but you may be responsible for damage while it's on your site
• Some rental companies offer a damage waiver for a fee
• Your belongings inside are usually not covered by the rental company, so check your own policy

Read your rental agreement carefully.

Insuring a container in transit

If you're shipping goods overseas in your own container, ask your freight forwarder about cargo insurance. Standard carrier liability is often limited.

Ways to reduce the risk (and maybe your premium)

• Lock box and high-security padlock
• Lighting, such as motion-sensor lights
• Cameras covering the doors
• Placement where the doors face a visible area
• A level, raised base away from flood paths
• Clear space around the container to reduce fire risk
• An inventory with photos and receipts for the contents
• No hazardous materials unless properly stored and declared

Keep good records

• Your bill of sale with the container's unit number
• Photos of the container and contents
• Receipts for valuable items
• Your insurance policy details

They make any claim much easier.

If something happens

1. Make the area safe.
2. Take photos of the damage.
3. Report theft to the police and get a report number.
4. Contact your insurer promptly.
5. Keep damaged items until the insurer has seen them, if possible.

Questions to ask your insurer

1. Is a shipping container on my property covered, and as what?
2. What are the limits for contents stored inside?
3. Is theft from an outbuilding or container covered?
4. Are there conditions, such as a minimum standard of lock?
5. Does cover change if I use the container for business, or modify it?
6. What about flood, wind and falling-tree damage?
7. Is liability covered if someone is hurt around the container?
8. What records will I need to make a claim?

Container use and cover

FAQ

Does homeowners insurance cover a shipping container?

Often, as an "other structure," but check your policy and ask your insurer about limits and exclusions.

Are the contents of my container insured?

Possibly, under personal property or business property cover. Check limits and theft exclusions.

Who insures a rented container?

The rental company usually insures the container, but you may be responsible for damage on your site, and your contents need your own cover.

Will a lock box lower my insurance premium?

It may help, and it certainly reduces the risk of theft. Ask your insurer.

Do I need insurance for a container on a job site?

Contractors should make sure tools and equipment stored on site are covered by their policy.

Should I insure a container I'm shipping overseas?

Yes, consider cargo insurance through your freight forwarder, as carrier liability is often limited.

Do I need to tell my insurer when I add a container?

It's a good idea. Telling your insurer avoids surprises if you need to make a claim later.