Commercial Moving Insurance: Here Is What You Need To Know
Most people typically think about two things when they need to move: packing and transportation. Unfortunately, these are just the tip of the iceberg, and there is often much more to do. One of the easiest things to forget with commercial moving is insurance. Don't worry if this is your first time hearing about this, we got you! You'll learn all about it today. So let’s start right at the beginning.
What is moving insurance?
Watching your entire business property be loaded onto one or several moving trucks can be pretty unnerving. These items are valuable and central to your operations and would grind your business operations to a stop if they were to get damaged or lost. This is where insurance comes in, and why you should purchase moving insurance. The same way you get insurance policies like health insurance, commercial auto, business insurance and general liability insurance is the same way you can get relocation insurance to protect your business assets. By definition, moving insurance is an insurance cover that protects your belongings against loss and property damage during a move. You can move using movers or by yourself. As such, there are different insurance covers depending on how you move.Types of Moving Insurance if You Hire Commercial Movers
One of the benefits of hiring movers is that they come insured and are responsible for their client's property. However, if you are making an interstate move, federal law requires that the moving company offer two types of coverage. The type of coverage you pick will dictate your reimbursement should anything occur en route. These covers are the released value and the full value protection.Released value protection
The released value protection is the primary coverage required by federal law. This option is offered at no additional cost but provides very minimal protection. The released value protection is based on weight, paying up to 60 cents per pound for an item. This goes for everything from a bag of paper clips to expensive IT equipment. So if your 1 pound, $500 tablet gets lost in transit, the reimbursement will be a long way from covering its replacement value. For a more practical example, say the movers damaged your office refrigerator that weighs 365 pounds that cost $1,400. The item is weighed and multiplied by 0.60 to give a dollar amount. So in the above example: 365 × 0.60 = 219 Under this coverage, the moving company will be liable for $219. As stated earlier, there will be additional charges for this, and you will sign a specific statement on your contract or the bill of lading.Full value protection
This cover is based on your valuation of the items you will be transporting. While it costs extra, it works out better than release value protection. With this cover, moving companies refund you based on the current value of the items. Under this moving company insurance, the moving company has two options if your items are damaged, destroyed, or lost in transit. The first is to have the items repaired and restored to the state they were in before. The second is to replace the lost or damaged items with a similar ones. The moving companies, not the client, are supposed to determine which of these two options to go by. So if your three-year-old refrigerator gets lost or damaged, the moving company does not get you a new one. Instead, they will give you a fair value amount for what a three-year-old refrigerator costs today or buy you a similar three-year-old replacement.
What Is Not Covered Under Moving Company Insurance
There are certain limitations with moving company insurance that make buying insurance an attractive option. These include:- Packing hazardous materials and perishable items without notifying your mover
- Doing some of the packing yourself makes claiming compensation more challenging. This is in cases where the damage to your items might directly result from inadequate packing.
- Not informing your mover in writing about high-value that will be moved
- Damage from natural disasters
Types of Insurance If You Move Yourself
You don't have the benefit of moving company insurance if you are making a DIY move, though your homeowners or renters insurance policy can cover your possessions. This is if you will transport your items in your car, a rented truck, or a rental car. Let’s look at the two protections you can get here.Relocation or trip transit insurance
This insurance gives you better coverage by protecting you against the following:- Property damage from mechanical and electrical accidents
- Natural disasters
- Damage to high-value items
- Mold and mildew
- Damages to pairs and sets
Rental truck moving coverage
Depending on the package you choose, the rental truck company can give you insurance coverage for yourself, the cargo, your passengers, and the truck itself. Some coverage types included in these policies include the following:- Cargo protection
- Damage waiver to accidental damage to the truck
- Supplemental liability coverage for accidents caused by yourself
- Life and medical insurance for yourself and your passengers
- Insurance for towing devices on the truck