Moving companies move your belongings from one place to another place. Moving business is quite risky as they take possession of other people’s property. Then they move them to new places. Commercial insurance for moving companies is crucial for the survival of the business. There are lots of risks associated with moving business. Accidents happen while moving stuff. Employees can get injured doing their or customers’ property damage. Business insurance will cover the cost related to these incidents.
Various insurance options available for the moving company provide a great deal. You need to find the most suitable insurance coverage for your company. Some insurance companies offer custom insurance policies for moving companies.
Types Of Insurance Available For Moving Companies
There are various categories of moving company insurance offered by the insurance company. Commercial insurance is crucial for moving companies to survive in the market. They have huge risk factors involved in the business.
The moving industry requires business insurance to get liability coverage for various causes. Such as workers’ compensation, client damage claim, and any other type of lawsuit. Most insurers offer moving insurance packages for risk coverage. Besides, the new business needs to have insurance coverage for uncertain incidents.
General Liability Insurance
General liability insurance is the most common commercial insurance coverage for moving companies. Risk is an obvious factor in business. All businesses have to deal with these risks regardless of their business type. General liability insurance covers the risks associated with the business. General liability insurance covers property damage, physical harm, medical payments, and lawsuits. This liability insurance also covers some other common types of incidents.
Customer property can get damaged during loading and unloading stuff. The moving business would be responsible for the damage. For example, a worker drops an expensive TV while loading and damages it.
The moving company’s insurance needs to cover the loss. General liability insurance covers these types of defense costs. But there is one issue in general liability insurance. It will cover the damage while loading and unloading. Sometimes stuff gets ruined while transferring or in storage. Then the company needs to take another insurance policy.
General liability insurance cover when the client gets hurt in the moving process. Such as, furniture may fall on a customer or a passerby while moving. The moving company is bound to take responsibility. General liability insurance also covers the medical cost of this type of incident.
Sometimes the moving business gets sued by the customer or any other party. Defending the lawsuit is expensive. But customers may claim against the moving company.
General liability insurance covers the legal cost of these types of lawsuits. Moving companies aren’t bound to get general liability insurance. But this policy can save a lot of money by covering these situations. Many insurance companies offer a discounted rate for general liability coverage. So, almost all the moving companies avail of this general liability policy.
Professional Liability Insurance
Professional liability insurance covers any type of professional service failure. It also includes service negligence by the movers. If the movers fail to provide the service within due time, the client may demand compensation.
Sometimes they may swap stuff between clients. For example, they may deliver the stuff to the wrong client. Customers usually have certain conditions and terms for moving their belongings. Not following the terms and conditions is another issue for the moving business. If the moving company fails to provide the required service, the customer can sue them. So, professional liability insurance covers all these professional liabilities.
Commercial Auto Insurance
It is mandatory to have auto insurance for commercial vehicles. Moving companies have trucks and vehicles to move clients’ stuff from one place to another. Sometimes accidents happen on the move. Such as, moving trucks may collide with other vehicles. Movers would face a huge loss as commercial vehicles are expensive. If the truck hits other vehicles, they may demand compensation from the moving company. Commercial auto insurance cover this type of incident. All commercial vehicles must be insured in moving services.
Movers can get automobile liability insurance separated from other policies. They can also invest their money to get a whole insurance package. The package would include auto liability. The movers should have full commercial auto coverage to avoid accidents’ large-scale losses.
Workers Compensation Insurance
Workers are an important part of moving business. They are essential in every task involved in the moving process. Such as loading, unloading, packing, unpacking, transferring, or any other moving job. So, the company needs to ensure the financial defense of its employees.
Workers’ compensation insurance covers any type of on-the-job injury. Such as if an employee drops something on himself while loading or unloading or if they got hurt in any other way. It is mandatory to maintain this insurance. It protects the employees if a serious injury happens.
Umbrella Liability Insurance
Umbrella liability covers large-scale claims. We know in businesses that there is no certainty of incidents. Risks are always inevitable in business. The general policy usually covers up to a certain amount of money. But sometimes the damage is larger than that.
Umbrella liability Insurance covers any extra coverage. It is suitable for larger-scale claims. For example, if a client files a lawsuit against the company and the claim is higher than usual. Then umbrella liability covers the legal costs. This insurance can cover any kind of large claim. The movers need to give extra premium money in this policy, but the coverage would be worth the money.
Commercial Property Insurance
Movers own physical properties like equipment, office, or other commercial property. They can get commercial property insurance on these types of properties. Commercial properties are the properties movers are using for organizational purposes. It gives them the facility to protect the commercial property of the business. So, they need to be insured.
Customized Insurance Coverage
Sometimes the insurance company provides customized insurance packages to the moving business. The moving business may need a customized policy based on the need. So, the moving business can select the insurance package.
A moving business can get insurance based on the business owner’s policy (BOP). BOP allows a moving business to have personalized policies. Such as professional liability, commercial property insurance, general liability coverage, or business interruption.
Other Insurance Policies
There are some other insurance policies available for the moving business. For example, most moving businesses maintain websites nowadays. Often there are sometimes breaches of data. Cyber liability coverage protects the mover from any such kind of breach. There is also liability insurance. This insurance will take responsibility if the client’s property gets damaged while transiting.
Moving Company Insurance Cost
The moving company’s overall cost varies depending on several factors. It may depend on the size of the business or on the types of insurance the company wants to avail of. Also, a variety of insurance policies are available.
The moving business should avail the one that is appropriate for their needs. It also depends on the insurance policy the moving company wants. Sometimes a moving company only wants coverage for their employees. Then the expense will depend on the number of employees working there. Sometimes the business wants to cover the customer’s property damage. Then the insurance premium will depend on that. Often the moving business requires whole coverage for their business.
The insurance agency will provide that facility with an appropriate premium. Finally, some moving businesses require personalized service. Insurance premiums depend on these factors.
Size Of The Moving Business
The size of the moving company impacts the insurance cost. If the company is large, it will need more coverage than a small business. A small business usually requires insurance policies for its limited activities.
Types Of Moving Services
There are different types of moving companies available in the market. Many provide local moving services; many provide long-distance moving. Some of the companies provide local, long-distance and international moving services.
There are moving businesses that are household movers. Also, some moving companies offer both moving and storage services. Depending on the type of moving services, the insurance expense will vary.
Not all types of movers need the same coverage. So, the moving company must avail of the insurance policy appropriate for them. The policy must match their requirements. The insurance premium will depend on the type of moving business.
Area Of Service
Insurance expense depends on the mover’s area or location of business. For example, if the moving company location is in a city area, the premium will be higher than the average.
Number Of Employees
Commercial Insurance cost also depends on the number of employees of moving companies. More employees need more insurance coverage. Workers may face different types of injuries while moving customers’ stuff. It is mandatory to have worker compensation insurance to deal with any type of bodily injury. So, the number of workers will have an impact on insurance costs.
Why Moving Companies Need Insurance
Moving companies are responsible for their client’s belongings while moving them. Moving and storage companies have high-risk involvement. Commercial insurance secures moving companies from different types of damage. There are various causes why moving companies need moving insurance. Some of the prime reasons are-
To Protect Customers’ Property
People rely on the moving company to move their belongings from their current place to a new place. The Moving company delivers their client’s possessions to the destination. But accidents can happen, damaging clients’ belongings. For Example, an employee drops off the client’s property while moving. Or they can collapse items into something. Thus, moving companies will be responsible for damaging the property of their customers.
So, insurance coverage for the client’s property damage is necessary. It will help the moving company to continue its business operations. Sometimes the client has expensive equipment that the moving company is transferring. Any damage would cost the company huge compensation. Thus, having moving insurance for the client’s property damage is better. Proper coverage would make it more reliable.
To Cover Employee’s Injury
Moving companies have skilled workers who render physical labor. The moving employees do tasks such as packing, unpacking, loading, and unloading. During this moving process, employees may have physical injuries. The moving company is accountable for any type of on-duty bodily injury to its workers.
There are insurance policies that cover the worker’s work-related sickness or injuries. The moving company insurance offers a great deal of worker’s compensation. If any work-related incident happens, the insurance will cover it.
To Protect Their Vehicle
Usually, moving businesses have their vehicles to transfer the client’s stuff. Relocation companies face a huge challenge as moving trucks often get into an accident. Moving trucks are quite expensive. Relocation business largely depends on them. Moving vehicles are extremely valuable in providing moving services. So, any type of accident would cost the business high. Commercial auto liability insurance insures the business in case of an accident.
Conclusion
Moving businesses provide many services and reduce stress for their customers. The moving process involves risks. Business insurance helps the mover deal with those risks. Moving company insurance has special features for them.
The moving industry is full of risks and uncertainty. Insurance covers the mover, like accidents, property damage, and employee injury. Moving businesses need insurance to protect the business from damage. Moving company insurance ensures the movers a secure way to do business. Find commercial insurance for moving companies now.
FAQ
Q: What type of insurance do you need for a moving company?
A: There are a few types of insurance available to cover your losses. These are:
- General liability insurance
- Professional liability insurance
- Commercial Auto insurance
- Workers compensation insurance
- Umbrella liability insurance
- commercial property insurance
- Customized Insurance coverage
- Other insurance policies
Q: Is commercial insurance required in Texas?
A: Commercial insurance is for your business. Though it’s not mandatory, it helps you to cover losses if any accident happens.
Q: What is cargo insurance for moving companies?
A: A cargo insurance covers your household stuff while transporting in a cargo. It will cover your valuable items like a rare painting or a little flower vase that is very special to you.
Q: What is the minimum commercial insurance cost in Texas?
A: The minimum liability limit for a commercial insurance is about $35,000 per person and $68,000 per accident for bodily injury, and $32,000 for property damage. Many insurance companies cover the highest limit of the coverage.