5 Coverages for Moving Companies Considering a National Van Line Affiliation

 

5 Coverages for Moving Companies Considering a National Van Line Affiliation
 

 
I was speaking with my contact at a national van liner the other day, and she mentioned that they often run into problems with insurance coverage when they are recruiting and signing up independent moving companies. If movers have not been affiliated previously with a van line, they may not have carried certain required coverages, such as Cargo Liability and Warehouse Legal Liability.
 
If you're an “independent” moving company being recruited by a national van line, there may be some insurance coverages you've never carried, but need to have with a van line contract:
 
1.   Warehouse Legal Liability - if you plan on offering storage services to your clients, even temporarily at a self-storage facility, be sure the location(s) are scheduled and have adequate limits to address the loss potential based on the valuations given to the warehouse customers.
 
2.  Cargo Coverage - make sure your cargo limits are adequate to cover the loss potential based on the valuations given to the customers/shippers. Have you agreed to an increased valuation and is that included in the limit you will need? These limits are often expressed as Per Truck/Per Occurrence.
 
3.  Workers’ Compensation (WC) - often required based on the number of employees, which varies by state. If you are in one of the four monopolistic states (North Dakota, Ohio, Washington or Wyoming), be sure to check if you have a coverage called Stop Gap Coverage added to your General Liability Coverage. This will provide Employer’s Liability coverage, which is typically found in standard WC policies. If the mover, as an employer, is found to be negligent for failure to properly maintain equipment, which led to the injury, Employer’s Liability will serve to protect the mover for defense and damages. 
 
If you operate on an interstate basis, you may need WC Coverage for your employees for those other states. Even if you are not in a monopolistic state, you will want to be sure to have All States coverage included in your WC policy for any interstate operations.
 
4.  Alternate Employer Endorsement - this endorsement is to be added to your WC policy to protect the National Van Line with which you’re affiliated.
 
5.  Additional Insureds, Waivers of Subrogation and Primary/Non-Contributory (PNC) wording - consider an insurance carrier with the flexibility to add Additional Insured’s, Waivers of Subrogation and Primary/Non-Contributory (PNC) wording, which is often required by the van line affiliation.
 
 
Now for the disclaimer: This blog is written in a very broad fashion and will not be used in any claim settlement. The actual policy and circumstances surrounding a claim take precedence. There may be some exclusions and limitations not addressed in this brief article. 
 

 
Terri Moran
Chief Underwriting Officer