Household Goods Moving Insurance Policy Information
Household Goods Moving Insurance. Household goods moving companies pack up and move the contents of homeowner's houses from one location to another. While this is undoubtedly an invaluable service, if you're the owner and operator of such a company, you are legally liable for any losses that may occur while the goods you're moving are in your care.
You're also responsible for the safety and well-being of your staff, as well as any physical property that's related to your business operations, including your fleet of vehicles and commercial space.
Movers transport furniture and business or household goods from the initial loading and pickup at the customer's old premises to delivery and unloading at their new premises. Most furniture movers assist in the packing and unpacking for customers who are relocating.
Many have warehouse facilities for both temporary and long-term storage of customers' goods. Furniture movers may be local or operate on a regional or national basis. The trucking industry is regulated by a number of federal agencies.
To protect yourself from significant financial losses, investing in the right type of household goods moving insurance is imperative. What type of insurance do household goods movers need? Read on to find out.
Household goods moving insurance protects your moving company, including damage caused by your movers - from lawsuits, with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked moving company insurance questions:
- What Is Moving Company Insurance?
- How Much Does Household Goods Moving Insurance Cost?
- Why Do Moving Companies Need Insurance?
- What Type Of Insurance Do Household Goods Movers Need?
- What Does Household Goods Moving Insurance Cover & Pay For?
What Is Moving Company Insurance?
Moving company insurance is a type of insurance that is specifically designed for businesses that provide moving services. This type of insurance typically includes coverage for a wide range of potential risks that may be encountered during the moving process.
Some of the most common types of coverage included in moving company insurance policies include liability insurance, which covers damages to the property of customers or third parties during the move. This coverage may also include protection against injuries that may occur during the move, such as accidents involving the movers or damage to the customer's personal belongings.
In addition to liability coverage, many moving company insurance policies also include coverage for the company's own property and equipment. This can include coverage for the company's vehicles and other equipment that may be damaged or lost during the moving process.
Another important aspect of moving company insurance is the protection it provides for the company in the event of a dispute or lawsuit. This can include coverage for legal fees and other expenses associated with defending the company against any claims that may be made by customers or other parties.
Overall, moving company insurance is an essential aspect of running a successful moving business. It provides peace of mind for both the company and its customers, ensuring that all parties are protected in the event of any unexpected incidents or accidents during the moving process.
How Much Does Household Goods Moving Insurance Cost?
Household goods moving insurance costs range for small movers ranges from $97 to $189 per month based on location, size, payroll, sales and experience.
Why Do Moving Companies Need Insurance?
Household goods movers need insurance to protect themselves and their clients in the event of accidents, damage, or loss during the moving process. The act of moving fragile and valuable items such as furniture, electronics, and personal belongings can be a risky task, and there is always the possibility of something going wrong. Household goods moving insurance provides a safety net for both the mover and the client, ensuring that any damage or loss will be covered and that the client's possessions will be taken care of.
In addition, insurance is often required by law for household goods movers. The government regulates the moving industry and mandates that movers carry certain types of insurance to protect their clients and the public. Without insurance, movers would not be able to operate legally and would be at risk of facing significant fines or penalties.
Furthermore, having insurance gives household goods movers credibility and reassures clients that they are a reputable and professional company. Clients are more likely to trust a mover who has insurance as they know that they will be protected in case of any mishaps. It also helps the movers establish trust and build a long-term relationship with their clients.
Overall, insurance is essential for household goods movers as it not only protects them and their clients but also meets legal requirements, and gives them a professional edge in the industry.
What Type Of Insurance Do Household Goods Movers Need?
The specific types of household goods moving insurance policies movers need varies and depends on several factors; the size of your operation and where you're located, for example. However, there are certain types of policies that all household moving organizations are likely to need, such as:
- Cargo Insurance - In most states, cargo insurance is required for moving companies. This type of insurance covers the goods that you transport. If your crew drops and damages a client's computer, for example, this type of insurance would help to cover the cost of the damages.
- Commercial Auto - You'll also need to protect your fleet of moving trucks with commercial auto insurance. If any of your trucks are involved in an accident, this policy will cover the cost of any damages to the vehicle, other motorists that may be involved in the accident, and any medical care that may be needed.
- Commercial General Liability - This type of insurance covers the cost of third party liability claims, including personal injuries and property damages. For example, if a client files a lawsuit against you, claiming that your crew damaged their property, a commercial general liability policy would cover the cost of any legal fees, as well the damages that a court may find you liable for.
- Workers Compensation - As an employer, you are responsible for the well-being of your movers and other staff while they're on the job. If they sustain work-related injuries or illnesses, you are liable for the medical care that they require, as well as the wages that your staff may lose while they're recovering. Workers' compensation insurance will cover these costs.
- Commercial Property - To protect your commercial space, you'll need commercial property insurance. This policy covers the cost of any damages to the physical structure of your commercial building, some exterior structures (signage, walkways, etc.), and the contents within your building from certain catastrophic events. For example, if a fire breaks out in your warehouse, commercial property insurance will help to pay for the damages.
Moving Company Risks & Exposures
Commercial auto exposure is written on a motor carriers' policy. The exposure is very high because it includes loading, unloading, and transporting the furniture and other household goods. Customers and others can be injured should the movers drop or overturn items being carried. Children may be present during loading or unloading operations, requiring additional caution. All drivers must have training in lifting and handling of items being carried and to safely operate trucks under all kinds of conditions, including adverse weather, construction impediments, darkness, and heavy traffic.
They must have a valid commercial driver's license (CDL) for the trucks being driven. MVRs must be acceptable and checked regularly. Manipulating a large semi-trailer rig in a residential area requires training and awareness of surroundings. Driving logs must be maintained, and drivers must not be permitted to exceed regulatory limits on their hours of service. Hands-free two-way communication and GPS systems should be installed on all trucks. Random drug and alcohol testing should be required. Vehicles must be maintained and records should be kept in a central location. Accidents can result in the spillage of diesel fuel or other operating fluids from within the truck, requiring cleanup.
Premises liability exposure is low due to limited public access. Cargo containers stored outside may present an attractive nuisance to minors. Fencing and lighting help reduce the exposure. Most off premises exposures relate directly to truck operations, such as loading or unloading, and are covered under the motor carriers' liability policy. Contracts may expose the operation to additional liability. The contract should spell out the responsibilities of each.
Environmental impairment exposure can be high due to the storage of fuel and the waste disposal of fluids used for servicing and repairing trucks. All tanks, underground and above, must meet state or federal regulations and be routinely tested for leakage. Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing trucks. Contracts should be in place to dispose of all environmentally dangerous chemicals. If there are underground storage tanks, a UST policy will be needed.
Workers compensation exposure is moderate from driving, loading and unloading customers' goods, and repair and maintenance activities. Drivers must operate in adverse traffic conditions such as inclement weather or road construction. Ergonomically designed seats can reduce back and leg injuries to drivers who sit in the same position for hours at a time. They must be monitored to ensure that an appropriate amount of time is allocated for sleep. Loading and unloading can result in all forms of back injury, hernia, sprain, and strain losses.
The training, material handling devices, and equipment are important to review. Drivers can be injured in collisions. Garage employees can be injured by vehicles falling from hoists, strains, sprains and other lifting injuries. Good housekeeping is critical to reduce injury from slips, trips, and falls. Burns, eye injuries, and respiratory problems can occur with welding and painting. Dermatitis can result from employees coming into contact with harsh cleaning detergents. Repair areas should be properly ventilated. Proper safety equipment is required.
Property exposures may be limited to electrical, heating and cooling systems for an office location. If the company repairs, refuels and maintains its own vehicles on premises, there will be flammable liquids, including gasoline and diesel fuel, and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion. All spray painting should be conducted in a spray booth with explosion-proof fixtures. Poor housekeeping is a serious fire hazard.
Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire. The condition and controls of fuel tanks, whether above or below ground, are important for both property and environmental liability. There must be adequate aisle space to allow firefighters to carry out their duties.
When another party does the packing, the mover will not know the type of property being stored or its potential fire hazards. If rack storage of crates and boxes is used, there should be sprinklers in the racks. The sprinkler heads must be located high enough to avoid accidental contact with forklifts, but with enough clear space from the racks to allow unobstructed operation in the event of a fire. In order to reduce catastrophic losses, firewalls and fire divisions should separate the storage areas. Good housekeeping and fire controls are critical. Smoking should be prohibited.
Forklifts should be refueled in a separate, ventilated area away from combustibles. As stored items are attractive targets for theft, there should be appropriate security including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Business income and extra expense exposures are high as replacement warehouse facilities may not be readily available.
Inland marine exposure is from accounts receivable for billings to customers, computers to track shipments, motor truck cargo for goods carried for others, and valuable papers and records for licenses and other regulatory information. Customers' property may be damaged while being transported due to overturn, collision, or theft. Cargo containers should have locks and appropriate alarm systems. Some furniture movers are subject to minimum cargo legal liability requirements. The bill of lading should clearly spell out the responsibility of the mover to the customer. Careful records must be maintained as to items moved and condition of items prior to transport.
Any items being transported or in storage must be marked to prevent incorrect release. Records should be duplicated and kept off premises. If goods are stored for customers, warehouse operators' legal liability coverage is needed. Limits needed will depend on the contract between the facility and its customers, but should spell out who is responsible for damage to stored goods.
Crime exposure is from employee dishonesty and money and securities. Background checks, including criminal history, should be performed on all employees handling money. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements, and reconciling bank statements. Regular internal and external audits should be conducted. As drivers, loaders, and unloaders have access to customers' premises, the exposure to theft of customer property or customer identity theft increases.
What Does Household Goods Moving Insurance Cover & Pay For?
Household goods movers can be sued for a variety of reasons, including but not limited to:
Property Damage: During the moving process, the movers may damage the client's property. For example, they may accidentally drop a fragile item or scratch a piece of furniture. In such cases, the client may sue the movers for damages.
Insurance protection: Insurance policies for household goods movers typically include liability coverage, which can help pay for damages caused to the client's property. The insurance policy may cover the cost of repairs or replacement of damaged items, up to the policy limits.
Personal Injury: The movers may cause personal injury to the client or a third party during the moving process. For example, a mover may drop a heavy item on the client's foot, causing an injury. In such cases, the injured party may sue the movers for damages.
Insurance protection: Insurance policies for household goods movers typically include bodily injury coverage, which can help pay for the medical expenses, lost wages, and other damages caused by the injury. The insurance policy may cover the injured party's medical bills, lost income, and other expenses, up to the policy limits.
Breach of Contract: The movers may fail to fulfill their contractual obligations to the client. For example, they may arrive late or fail to deliver the client's belongings on time. In such cases, the client may sue the movers for breach of contract.
Insurance protection: Insurance policies for household goods movers typically include coverage for breach of contract, which can help pay for damages caused by the movers' failure to fulfill their contractual obligations. The insurance policy may cover the cost of damages caused by the delay or failure to deliver the client's belongings, up to the policy limits.
Theft: The movers may steal the client's belongings during the moving process. For example, a mover may steal valuable jewelry or electronics. In such cases, the client may sue the movers for theft.
Insurance protection: Insurance policies for household goods movers typically include coverage for theft, which can help pay for the stolen items. The insurance policy may cover the cost of replacement of the stolen items, up to the policy limits.
In summary, insurance for household goods movers can protect them from lawsuits related to property damage, personal injury, breach of contract, and theft. However, the specific coverage and limits may vary depending on the insurance policy. It's important for movers to understand their insurance coverage and take steps to minimize the risk of lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4212 Local Trucking without Storage, 4213 Trucking, Except Local, 4214 Local Trucking with Storage
- NAICS CODE: 484210 Used Household and Office Goods Moving
- Suggested Workers Compensation Code(s): 8293 Warehousing - Furniture & Drivers
Description for 4212: Local Trucking Without Storage
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing : Industry Group 421: Trucking And Courier Services, Except Air
4212 Local Trucking Without Storage: Establishments primarily engaged in furnishing trucking or transfer services without storage for freight generally weighing more than 100 pounds, in a single municipality, contiguous municipalities, or a municipality and its suburban areas.
- Baggage transfer
- Carting, by truck or horse drawn wagon
- Debris removal, local carting only
- Draying, local: without storage
- Farm to market hauling
- Furniture moving, local: without storage
- Garbage, local collecting and transporting: without disposal
- Hauling live animals, local
- Hauling, by dump truck
- Local trucking, without storage
- Log trucking
- Mail carriers, bulk, contract: local
- Refuse, local collecting and transporting: without disposal
- Rental of trucks with drivers
- Safe moving, local
- Star routes, local
- Truck rental for local use, with drivers
- Trucking timber
Description for 4213: Trucking, Except Local
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing | Industry Group 421: Trucking And Courier Services, Except Air
4213 Trucking, Except Local: Establishments primarily engaged in furnishing "over-the-road" trucking services or trucking services and storage services, including household goods either as common carriers or under special or individual contracts or agreements, for freight generally weighing more than 100 pounds. Such operations are principally outside a single municipality, outside one group of contiguous municipalities, or outside a single municipality and its suburban areas.
- Long-distance trucking
- Over-the-road trucking
- Trucking rental with drivers, except for local use
- Trucking, except local
Description for 4214: Local Trucking With Storage
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing: Industry Group 421: Trucking And Courier Services, Except Air
4214 Local Trucking With Storage: Establishments primarily engaged in furnishing both trucking and storage services, including household goods, within a single municipality, contiguous municipalities, or a municipality and its suburban areas.
- Furniture moving, local: combined with storage
- Household goods moving, local: combined with storage
- Trucking, local: combined with storage
Household Goods Moving Insurance - The Bottom Line
To find out what other types of moving company insurance policies you'll need - and how much coverage you should carry, consult with a reputable broker that specializes in commercial insurance.
Additional Resources For Commercial Auto Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Insurance Automotive Terms Glossary
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Electric Vehicle Insurance
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow Truck
- Specialty Automobiles, Trucks And Recreational Vehicles
- Specialty Physical Damage
Commercial auto insurance is a type of insurance that provides coverage for vehicles used for business purposes. This includes vehicles such as delivery trucks, company cars, and other vehicles that are used to transport goods or employees.
Commercial auto insurance is necessary for businesses that rely on their vehicles to conduct their operations. It helps to protect the business from financial losses due to accidents, theft, or other unexpected events. It also helps to protect the business from potential lawsuits that may arise from accidents involving their vehicles.
There are several types of coverage options available under business auto insurance policies. These include:
- Liability coverage, which covers damages or injuries that you or your employees cause to others while operating a business vehicle.
- Physical damage coverage, which covers damages to your own vehicle, is also available.
- Other coverage options may include medical payments, uninsured or underinsured motorist coverage, and rental reimbursement.
It is important for businesses to carefully consider their commercial auto insurance needs and to choose a policy that offers the right level of coverage. This can help to ensure that the business is protected in the event of an accident or other unexpected event.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.