Insurance

Customer Coverage

Every Storage Valet subscription includes $2,000 of coverage for stored items. This is a key differentiator from traditional self-storage and a trust signal for premium customers.

How Coverage Is Counted (Custody Accounting)

Coverage counts only items in Storage Valet’s custody — items that are stored, or scheduled for delivery (still in SV’s hands). Items at home, or scheduled for pickup but not yet collected, do not consume coverage. This is enforced server-side by a single shared custody predicate (fn_v2_item_in_custody) that drives both the coverage meter and the plan-capacity meter; the portal displays coverage from the v_v2_insurance_coverage read-model using each item’s customer-declared value (F13, Jul 13, 2026).

Ops can raise an individual member’s cap via customer_profile.insurance_cap_cents_override (F13.1, Jul 15, 2026) — the effective cap is the override when set, otherwise the plan’s $2,000. Customers cannot edit the override, and no override is currently in use. Portal messaging near the caps is informational and concierge-routed (“You’re approaching your included coverage”) — it never quotes mechanics, upsells, or pricing.

Business Insurance Requirements

Cost estimates and coverage requirements for operating a pickup-storage-delivery business in New Jersey. Based on May 2025 research.

Startup Phase ($4,000-$8,000/year)

Coverage Type	What It Covers	Recommended Limit
General Liability	Third-party bodily injury, property damage, advertising injury	$1M per occurrence / $2M aggregate
Bailee's Customer Insurance	Customer property while in our possession or storage (critical for our model)	$1M coverage
Commercial Auto	Vehicles used for pickups and deliveries	Endorsement or limited policy
Business Personal Property	Our own equipment, office contents, storage facility contents	$100,000 coverage

Growth Phase ($10,000-$20,000/year)

Additional coverage needed when hiring employees or scaling operations:

Coverage Type	What It Covers	Notes
Workers' Compensation	Employee injuries on the job	Required by NJ law once hiring
Cyber Liability	Data breaches, customer data exposure	$1M recommended
Increased Bailee's Limits	Higher coverage for growing inventory volume	$2-5M coverage
Business Interruption	Income replacement if operations disrupted	Based on revenue
Umbrella Policy	Additional liability protection above primary limits	$1-2M recommended

Commercial Auto Alternatives

For the startup phase when using personal/family vehicles or renting:

• Hired and Non-Owned Auto (HNOA): $500-$1,000/year — covers liability when using rented or personal vehicles for business
• Usage-based insurance: For infrequent pickups/deliveries
• Full commercial auto: $1,500-$3,000 per vehicle/year — needed when owning a dedicated van

Recommended Providers

Specialized Storage Industry Insurers

• MiniCo Insurance Agency — Self-storage specialists, understand bailee's coverage
• The Hartford — Storage business packages
• Nationwide — Warehouse/storage tailored coverage

New Jersey Commercial Insurance Brokers

• HUB International — NJ offices
• Marsh McLennan Agency — NJ offices
• Otterstedt Insurance Agency — Hoboken/Bergen County (local)