FCA authorised · FRN 724952 0117 325 0027Quote & buy →
Removals and storage
A business that takes customers' goods into its possession to store them for payment is usually a bailee for reward and liable if it fails to take reasonable care. A self-storage operator that licenses a unit the customer locks may carry much less liability.
Part of: Warehouse insurance
In short
Liability for stored goods depends on who has possession and what the contract says. Warehouses, removers and repairers holding goods for payment are usually bailees who must take reasonable care. Self-storage agreements are commonly drafted as licences where the customer keeps the key and insures the contents. Limits in the contract must be reasonable for business customers and fair for consumers. In England, Wales and Northern Ireland, the Torts (Interference with Goods) Act 1977 lets bailees sell uncollected goods after proper notice.
Ask two questions. First, did the business take possession and control of the goods, or did the customer keep control, for example by locking a unit with their own padlock? Second, what do the signed terms say about liability, limits and insurance? The answers usually put the arrangement into one of the categories below.
| Arrangement | Usual legal position | Insurance that usually responds |
|---|---|---|
| Warehouse storing customers' stock | Bailee for reward; duty of reasonable care, shaped by trading conditions | Warehousekeepers' legal liability |
| Remover storing household goods in containers | Bailee for reward; conditions of storage apply | Warehousekeepers' liability or storage extension |
| Self-storage unit locked by the customer | Commonly a licence to occupy space; operator usually liable mainly for its own negligence | Customer's goods cover, plus operator's public liability |
| Repairer holding goods for work | Bailee for reward while the goods are held | Goods in trust or customers' goods cover |
In general terms, a bailee for reward must take reasonable care of the goods and is usually expected to show that loss or damage was not caused by its own failure to take care. That can be hard after a fire or theft. For consumer customers, section 49 of the Consumer Rights Act 2015 implies a term that the service will be performed with reasonable care and skill, and section 57 stops a term excluding that liability.
Our guide to warehousekeepers' legal liability explains how the cover responds, and our WKLL definition is a quick reference. The wider duty is explained on our duty of care page.
Many self-storage agreements are drafted as a licence to use a unit, with the customer holding the only key, the operator having no knowledge of what is stored and the customer required to insure the contents. Whether the operator has taken possession of the goods depends on the facts and the wording, so the label alone does not settle it.
Even under a licence, an operator can be liable for its own negligence, such as a failed roof or poor security, and for injury to people on site. Operators commonly offer customers a goods cover or require proof of their own insurance. Our self-storage insurance guide covers the operator's side, and our public liability guide covers injury to customers and visitors on site.
Transport is a separate stage. When a remover or haulier collects goods and drives them to a store, the goods are in transit, not in storage, and goods in transit insurance is the usual cover. The point at which one cover ends and the other begins should be clear in both wordings, especially during loading and unloading at the store.
For business customers, section 2(2) of the Unfair Contract Terms Act 1977 allows a term limiting negligence liability, other than for death or personal injury, only if it is reasonable. Under section 11(4), where liability is limited to a specified sum, the court has regard to the resources available to meet it and how far it was open to the business to insure. Section 2(4) confirms the section does not apply to consumer contracts, which are dealt with by the Consumer Rights Act 2015.
For consumers, section 57(3) of the Consumer Rights Act 2015 says a term cannot restrict liability for reasonable care and skill if it would prevent the consumer recovering the price paid in an appropriate case. In practice, limits should be clear, brought to the customer's attention before the contract and matched by insurance.
In England, Wales and Northern Ireland, section 12 of the Torts (Interference with Goods) Act 1977 gives a bailee a power of sale where the bailor fails to take delivery or cannot be traced. The bailee must give notice of intention to sell as set out in Schedule 1, or have failed to trace the bailor after reasonable steps, and must be reasonably satisfied the bailor owns the goods.
Section 12 is not marked as extending to Scotland, where the position is different. Many storage contracts also contain their own lien and sale clauses.
Illustrative. A removals firm stores a family's furniture in wooden containers. A blocked gutter floods part of the store. The family's home insurance does not cover goods in commercial storage, and they claim against the firm.
Apex arranges removals, storage and warehousing cover, including goods in transit. A broker reads each enquiry and comes back with options, and there is no fee for a quote. Cover is always subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus whether you run a warehouse, container store or self-storage site, your storage terms, the type and maximum value of goods held and your security and fire protection.
It depends on the arrangement. A warehouse or remover holding your goods is usually a bailee for reward and liable if it failed to take reasonable care, subject to fair or reasonable contract limits. A self-storage operator licensing a unit you lock may only be liable for its own negligence.
It is where one person takes possession of another's goods for a purpose, such as storage or repair, in return for payment. The bailee must take reasonable care of the goods and, in general, has to show that any loss was not caused by its failure to do so.
In England, Wales and Northern Ireland, yes, under section 12 of the Torts (Interference with Goods) Act 1977, if it follows the notice rules in Schedule 1 or cannot trace the owner. Where money is owed, the notice period must be at least three months.
Usually. Many self-storage agreements require customers to insure their goods, either through the operator's offered cover or their own policy. Home contents policies may not cover goods kept in commercial storage, so check the wording before moving items in.
Often yes, through trading conditions. For business customers the limit must satisfy the reasonableness test in the Unfair Contract Terms Act 1977. For consumers, the Consumer Rights Act 2015 prevents terms that exclude liability for reasonable care and skill.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
