By Casey Myers

After attending the Domestic Asset-Based (DAB) sessions at IAM’s Annual Meeting, we realized that there are some key insurance issues moving and storage companies should look at as they consider diversifying their business.  

Key Insurance Considerations when Diversifying Your Business

• Higher Liability or Umbrella limits may be required for commercial movers accessing buildings of large commercial clients (hotels, hospitals, corporate office buildings).
• When handling servers, computers, business records or undertaking document destruction, space planning or design, consider purchasing Professional Liability coverage (aka Errors & Omissions) to protect your business if your negligence causes financial harm to your client. Examples include errors in handling record storage that violates HIPPA or similar rules and space planning in conjunction with office moving operations. 
• If your employees are assembling/disassembling office partitions, your moving company may be required to obtain a contractor’s license and file the necessary insurance or bonds. This requirement varies by state. 
• Cargo insurance – commercial movers file fewer claims than HHG movers. Moves are often done on-site, and dollies are used in place of lifting/carrying items.  This also helps reduce Workers’ Comp claims.
• Appliance and electronic hook-up can be a risky service. Some of the largest claims come from a washing machine or refrigerator that was connected/disconnected incorrectly causing a leak.  Make sure you talk to your insurance agent prior to offering this service. 
• Vehicle claims tend to be less for O & I than HHG since trucks are parked all day for on-site moves.
• There are different (lower premium) Workers’ Compensation classifications that may be applied for non-HHG moving: installers class code for office partition installation, general warehousemen’s class code if your warehouse does not contain any used HHG, truckmen if the shipment does not contain used HHG.

These are just a few examples of coverage changes you should discuss with your insurance provider as you consider expanding your business, but they’re not the only ones. Your policies should be tailored to your specific needs and the ways you choose to diversify.

Casey Myers is an insurance industry veteran with more than 17 years’ experience. As vice president for Champion Risk & Insurance Services, she specializes in providing insurance coverage and guidance for moving and storage clients. Prior to joining Champion Risk, Casey worked for Paul Hanson Partners.

She is well-versed in industry trends, challenges and changes facing the household goods industry and serves as an associate board member for the California Moving & Storage Association (CMSA).

When she isn’t working, Casey enjoys cycling, running and spending time with her husband Diego and their dog Chance.