What Insurance Moving Companies Need

What Insurance Moving Companies Need

August 24, 2023 / 5 mins read

Your customers don’t want anything to go wrong during their move. They trust you to protect their furniture and valuables from the time they leave their house until they get to their new home.

Unfortunately, accidents and other mishaps can happen during a move. Your moving business needs a movers’ insurance package for protection.

Do you have a moving business that serves Edmonton and the surrounding area?

Ask your Western business insurance expert to help you get coverage you need to protect your Edmonton moving business.

Did you know that a mover may be legally liable for damage to homes or buildings that occurs during the moving process and for damage caused during packing or accidents during transportation?

How movers’ insurance protects you

Insurance for movers has specific coverages to protect your business. For example, an insurance package for a moving company can help protect you against claims of property damage to a customer’s furniture during a move.

How to protect yourself if you are moving

Before hiring a mover, ask for proof of insurance. This will give you a good idea whether the moving company is reputable and how your belongings will be covered in the event of an accident or mishap.

If you’re moving, take the steps to know what is covered during your move.

As a professional mover, movers’ insurance helps protect you from these 3 claims:

1. Employee theft

One of your employees steals a set of valuable antique lamps and a painting from a client who is moving. Crime insurance, also known as fidelity insurance, protects your moving company against property, money, stocks, or securities being stolen by either employees or third parties.

2. Slips and falls

A client comes to your moving company’s office for more information about her move. She slips and falls on the icy sidewalk at your entrance, fracturing her wrist. Your commercial general liability (CGL) insurance can help cover the cost of the client’s medical expenses and help cover legal advice if you are being sued.

3. Commercial Property Insurance

Your moving company’s office is vandalized and your computers are stolen. This type of insurance can help keep you protected from property losses, such as theft and vandalism. It also helps protect you in the event of a fire, and damage to tools or equipment that you need to operate your moving business. You can also add earthquake insurance, sewer backup or flood coverage extensions.

As a mover, here’s an insurance check list:

  • Do you have the best business insurance rate that suits your moving business?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for your moving business?
  • Do you know the value of your equipment and tools and are they properly insured?
  • Are you or your employees using personal vehicles for your work?

At Western, we are business insurance experts. We will save you time and money by doing the insurance shopping for you to find the right package at the right value for your Edmonton moving company.

What do I need in my mover’s insurance package?

Commercial general liability (CGL) insurance

Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket if a customer were to get injured or her property damaged during a move. CGL insurance is also known as “slip-and-fall” insurance.

This type of coverage can also help protect your moving business against allegations of false advertising, libel, or slander.

It would not be unusual to have $2 million or more in CGL coverage, depending on the size of your moving business.

Warehouse insurance (also called Warehouseman’s Legal Liability)

A warehouse insurance policy covers physical loss or damage to customers’ property when caused by the moving company at specified locations, such as a storage warehouse. This type of coverage is subject to designated limits.

Crime insurance

This coverage helps protect your moving business when a customer’s property is stolen by either employees or third parties.

Commercial property insurance

It keeps your moving company protected from property losses, such as theft or vandalism. You can also add earthquake insurance, sewer backup or flood coverage extensions to protect your moving company headquarters.

Property your moving company may need to insure:

  • Buildings and other structures
  • Furniture, equipment, supplies
  • Computers
  • Documents such as payroll, accounts receivable

Business interruption insurance

If there is an insured loss at your moving company that’s severe enough to prevent it from being open, the expenses associated with getting your business running again will be covered.

This type of policy usually covers vandalism, fire, wind, flooding, and other risks (make sure to understand what your policy covers). Your policy will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work.

It can mean the difference between closing and not reopening.

Cyber insurance

Do you keep client information online and take online payments? If so, your computer system could be hacked by cyberthieves.

Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

Commercial auto

Your moving business needs commercial auto coverage as part of your insurance package. You’ll need a fleet policy if your moving company has 5 or more vehicles. Personal car policies will not cover your drivers or your moving business.

Tools and equipment insurance

It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your moving business.

Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.

This type of insurance can also be called equipment floater insurance instead of equipment and tools insurance.

How much insurance do I need as a moving professional?

It will depend on the size of your moving business, moving destinations, and any past claims.

Ask your Western business insurance expert to determine the right level of coverage for you in this field.

What do I do if my moving company has an insurance claim?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your moving business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your moving company.

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