Common Situations That Are Covered By Liability Insurance For a Moving Company

In 2020, the Bureau of Labor Statistics reports that the U.S. had the lowest annual number of fatal occupational injuries since 2013. However, of the 4,764 fatal events, transportation and warehousing incidents remained the most frequent, with 1.778 fatal injuries.

Moving companies fall into the transportation and warehousing industry. General liability insurance offers moving company owners protection from risks like bodily harm, medical payments, property damage, and lawsuits.

Moving Companies and General Liability Insurance

General liability insurance is the most typical and most comprehensive type of insurance that any business can have, regardless of the industry. The design of general liability insurance is to cover enterprises from the risk of losing money in any type of lawsuit, including for bodily injury or property damage. General liability insurance for movers can include privacy invasion, malicious prosecution, and even wrongful entry. The insurance policy will cover medical, legal defense, and court judgment payments.

General liability insurance is not legally required, but it is vital for all businesses since the compensation paid can help them survive the costs of a lawsuit.

Situations Where General Liability Insurance is Needed

As you help people move within your city or into another, your company faces several situations that may put it at risk. As employees load your client’s possessions into the truck, a box left on the sidewalk can cause a tripping incident to some passerby.

Accidents like dropping an expensive piece of furniture or a box with fragile and costly ornaments are also common in the industry. Additionally, many prospective clients may visit your premises to organize their move, and a slip or fall can lead to medical expenses and even a lawsuit.

These are just some hazards from which general liability insurance coverage protects your moving business.

Copyright: TRUiC

Average Premium for General Liability Insurance

With an average cost of $450 -$1,000 for every $1 million general liability coverage, moving companies in America pay less than those in the construction, handmade crafts, home & garden, and the food & beverage industries.

These rates always depend on location, deductibles, employees, and limits like pre-occurrence and general aggregate.

You will also pay less if you include general liability insurance into a business owner’s policy. A business owner’s policy is a wide-ranging insurance solution providing several types of coverage, including property insurance, vehicle insurance, and business interruption insurance.

Insurance Types Needed by all Moving Companies

General liability is significant for moving companies, but it isn’t the only insurance your will need. TRUiC, the business ideas company with the resources and tools helping millions of new and older business owners, recommends the following insurances:

Workers’ Compensation Insurance

Employees of moving companies have a pretty high risk of on-the-job injuries because of the nature of the job, which requires loading and off-loading heavy furniture and boxes. Any company that employs workers must have this insurance in all states, even those employed for short-term or part-time work.

Any company that does not insure their workers faces legal penalties and places their business at risk.

Commercial Vehicle Insurance

Commercial vehicle policies are mandatory in all states, so ensure that each truck and company vehicle is covered by one. When insuring company vehicles, ensure that you cover the correct value of replacing them; otherwise, you may find the insurance pays out less than needed to replace them.

Commercial Property and Equipment Insurance

Any property owned by your moving company should also have coverage protecting it from damage from unexpected natural disasters or fires. Include equipment and inventory in the policy. If you also store items for clients between moves, you also need to protect these while under your care. These items are easy to incorporate into a business owner’s policy.

Commercial Umbrella Insurance

Supplemental liability protection for large claims from lawsuits and settlements exceeding your limits in an underlying primary policy requires extra commercial umbrella insurance. Commercial umbrella insurances cover your moving company from any more considerable risks that can occur. You can purchase this type of insurance under a package policy or as stand-alone coverage.

Last Word

Avoiding losses as much as possible is essential to your moving business. There are several ways to prevent losses to your business, including having binding legal contracts, ensuring all business documents are in order, having a protective legal entity, and licensing compliance.

Finally, business insurance, including general liability, is vital to protect its valuable assets. Moving Company Insurance always depends on several aspects of your business operation, which an agent can help you determine.