Off-site storage is an add-on cover which can be availed by the insured after paying additional premium in the Contractors All Risk Insurance Policy. The add-on coverage will be attached to the main policy and it will provide indemnity to the insured for off-site storage.
The conditions of the off-site storage add-on cover are mentioned below:
- The insurance company or the insurer shall indemnify the policyholder up to the limit of indemnity as mentioned in the schedule of the policy for loss of or damage to property insured while in off-site storage within the specified territorial limits.
- The territorial limits mentioned in the schedule of the policy shall include the site and any other additional locations mentioned for off-site storage and in-land transit.
- The Insurance company or the insurer shall not indemnify the policyholder for damage or loss caused by the failure to take normally accepted loss prevention measures for the storage units or warehouses.
- The precaution measures shall include in particular:
- Making sure that the storage unit is enclosed or sheltered with a building or at least walled or fenced in properly
- Protected and guarded against risks of fire especially for the type of property store or particular location
- Separating the storage unit at least by a distance of 50 meters or through fireproof walls
- Designing and positioning the storage unit or warehouse in such a way to prevent loss or damage by the accumulation of water by flooding or rainfall.