Last week, we discussed the Metcalf and Minnesota case. This scenario goes to show how sensitive and important documentation is in the moving and storage business. As the owner of the company, it is crucial to be well-versed on what type of bill of lading form you use as well as the words you choose to document. It is also important that you keep your company protected with movers insurance in order to avoid such large losses.

Just as important as it is to fill out a bill of lading, it is important that you fill it out properly. All wording on the document WILL be taken literal and can be misunderstood. This is exactly what happened in the case of Temple Steel Corp. v. Landstar Inway, Inc. On Landstar’s bill of lading, it stated false information about a tariff that was “in effect.” In fact, there was no tariff in effect and this ended up costing Landstar $300,000.

In order to avoid being misunderstood, it is important to always have two things when moving non-household goods:

1.    Have a “tariff”;

2.    Utilize a bill of lading which states the following:

“Received, subject to individually determined rates or contracts that have been agreed upon in writing between the carrier and shipper, if applicable, otherwise to the rates, classifications and rules that have been established by the carrier and are available to the shipper, on request.”

Morale of the story: words do matter! If your wording is not perfect, you may find yourself facing a large financial loss, just as Landstar did.

Luckily, moving and storage companies may be able to protect themselves from a large financial loss, much like this one, with the proper coverage. Movers insurance can be designed to cover a variety of risks, including: general liability, commercial umbrella, employment practices, automobile liability, warehouse liability, occupational accident and much more. Be sure to grab a free quote from us today!

Believe it or not, using the wrong bill of lading form may result in a huge financial loss, with or without movers insurance. For those who are not aware of the Metcalf and the Minnesota school district lawsuit, allow us to give you a short version of the story. Metcalf, the mover, provided a quote of $19,854 to the school district in order to transport school property. When all was said and done, Metcalf billed Minnesota for $65,845 instead, based on the “tariff” rate for the services actually performed. Of course, Metcalf was sued and in the end, suffered a loss of $45,991. Why? He was not fully aware of the definition of “household goods.”

In 1995, Congress redefined the term “household goods.” So, what is the definition?

“The term ‘household goods’, as used in connection with transportation, means personal effects and property used or to be used in a dwelling, when a part of the equipment or supply of such dwelling, and similar property if the transportation of such effects or property is:

1.    arranged and paid for by the householder, except such term does not include property moving from a factory or store, other than property that the householder has purchased with the intent to use in his or her dwelling and is transported at the request of, and the transportation charges are paid to the carrier by, the householder; or

2.    arranged and paid for by another party.”

It appears that Metcalf, relying on Minnesota’s definition of household goods would be able to quote one price and then collect his tariff charge as required by MN law. Unfortunately, Minnesota’s definition of household goods was the “old” definition which included so-called Proviso II and III shipments –which included the property of stores, offices, museums, institutions, hospitals, etc. As the MA Court of Appeals pointed out to Metcalf, in 1994 Congress preempted state regulation of intrastate transportation except for household goods and transport by water between non-contiguous states. As the property Metcalf no longer met Congress definition of household goods, the state’s definition was meaningless … and Metcalf’s tariff did not apply!

At Wolpert Insurance, we believe that it is important for all moving and storage companies to hear this story of Metcalf. If you are not careful or mindful of the type of bill of lading you are using, you may find yourself in legal trouble. For example, if you move a piano or organ owned by a “householder”, its household goods, if owned by a non-householder it’s not household goods and in order to limit your liability [60¢] and impose time limitations for filing claims and instituting suits, you need to move the property subject to a non-household goods (“Property”) tariff and b.o.l.

Lucky for you, we offer reliable insurance for movers and storage companies. We want to make sure your company does not have to suffer a large financial loss due to errors, accidents, etc. This specialized policy can provide coverage such as motor truck cargo, general liability, automobile liability, commercial property, occupational accidents and much more. Be sure to grab a free quote today!

As a moving and storage company, you understand how important it is to
protect yourself. One way to accomplish this is by looking into reliable
movers insurance. Another way is to make sure your company is using
bill of ladings. In the last post, we established the purpose of a
b.o.l. and discussed the importance of a household goods bill of lading
when it comes to moving and storage companies. Besides the three
purposes previously mentioned in the last post, the HHG BOL should also
accomplish another important task:

Incorporate the Carrier’s Tariff by Reference

This is crucial. In order to do so, the HHG BOL should contain wording along the lines of “Received subject to and in accordance with the rules, regulations and charges as contained in the tariff on file with the Massachusetts Department of Public Utilities and the terms and conditions on the bill of lading shown on the back…” etc. If you do not specify, it would be up to the court to decide what terms and conditions apply. It is important to be specific and make sure you have everything written down!

As you can see, a HHG BOL is important for moving and storage companies to have a good grasp on. Without it, companies could be facing an issue or even a lawsuit.

Luckily, we offer reliable insurance for moving and storage companies. At Wolpert Insurance, we want to work with you to make sure you do not have to face any issues or lawsuits alone. We can provide policies such as: automobile liability, motor truck cargo, warehouse liability, general liability, workers compensation and much more. Take a look at our site and grab a free quote today!

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All savvy business owners know that securing the right insurance is crucial to your venture’s success and profitability. When you’re working in the moving and storage industry, it’s important to recognize that there are multiple factors that affect your business – your clientele, the value of their goods, your workers and staff, etc.

Before you can develop your movers insurance strategy and settle upon an appropriate policy, you need to ensure that your entire staff and client base understands the basics; beginning with an explanation of common terms:

• Accessorial Services – services such as packing, unpacking or shuttle service that your client ma request to be performed. Charges for these services generally are in addition to the transportation charges.
• Bill of Lading – the receipt presented to the client, which documents the goods and the contract for their transportation. It’s important that your client understands the specifications before signing.
• High Value Article – items included in shipment that are valued at more than $100 per pound. The items should be communicated to and disclosed to you, by the client, to ensure that your staff properly protects these personal items accordingly.
• Inventory – the detailed descriptive list that shows the list of household goods being transported, as well as the number and condition of each item.
• Storage-In-Transit (SIT) – temporary warehouse storage of the client’s shipment pending further transportation; i.e. if the new home isn’t quite ready to occupy. Added charges for SIT service and final delivery charges, most often will apply.
• Valuation – the degree of “worth” of the goods in shipment; this is important in regards to potential claims and the degree of liability you assume.

When you’re in the moving and storage business, it’s important that you maintain the reputation for safety and protection; your consumers seek you out to safeguard their goods, making your coverage needs just as important as their understanding of the common terminology. At Wolpert Insurance, we offer a unique variety of safety, compliance, and risk management tools to enable you to run your business safer and be more profitable. Interested in learning more about our movers insurance coverage? Contact Wolpert Insurance today for a free movers insurance quote!

As the owner of a moving and storage company, it’s likely that you may have some questions regarding your commercial insurance options. When it comes to protecting your liability, it’s important that you understand all aspects of your movers insurance policy – especially that which is applies to the goods and personal items in your possession.

In the moving & storage industry there are two common degrees in which one’s goods are appraised and valued; released value and declared value.

Released Value: when the owner declines any additional level of protection other than the dollar amount per pound that the warehouseman offers in their local tariff and noted on the bill of lading.

Declared Value: when the owner purchases a higher valuation for his household goods. In most cases this is a higher dollar value per pound.

According to the American Moving and Storage Association ( A.M.S.A.), the majority of moving and storage companies, operate on a $5.00 per pound valuation; however the owner can also declare a set amount as his or her valuation for one’s particular goods. The rates for these higher valuations should be contained in the warehouseman’s tariff.

With valuations in mind, it’s necessary that you recognize what additional protections your client may or may not have while their goods are in storage at your facility. For example, one’s personal home insurance policy may provide some level of coverage; however, in most instances where permanent, long-term storage is being utilized, there is no longer a home being insured. Therefore, the owner has the duty to determine what, if anything is covered under his or her homeowner’s policy if the items are damaged while in the care, custody or control of the warehouseman. If you have opted for a warehouse legal liability policy, your coverage will only pay for loss or damage to your client’s goods based on the declared value chosen by the owner on the original warehouse receipt.

It’s clear to see that a portion of your liability, and how your insurance policy will handle a claim, depends on the value of your client’s goods. When you’re in the moving and storage business, it’s important that you maintain the reputation for safety and protection; your consumers seek you out to safeguard their goods, making your coverage needs all the more important. At Wolpert Insurance, we offer a unique variety of safety, compliance, and risk management tools to enable you to run your business safer and be more profitable. Interested in learning more about our movers insurance coverage? Contact Wolpert Insurance today for a free movers insurance quote!

As the owner of a moving company, you have many responsibilities to watch over. Although it is important to focus on your commercial vehicles, it is also crucial not to forget about your warehouse. If you don’t take care of your storage units – and the valuables inside – you can be setting yourself up for liability losses; guaranteed to affect your reputation and movers insurance premiums.

Warehouseman’s legal liability coverage was developed to insure you as the warehouser against loss or damage to the property and goods stored on behalf of others. While in your care, you may be responsible for any harm caused to the personal items left in your custody and control – making your attention to detail more important than ever.

As a warehouseman it’s important that you take your liability seriously. Consider the potential risk exposures. While shifting boxes and storage units, your forklift operator may experience a blind spot, causing him to knock into nearby packing units. The force of the impact cracks the unit, damaging some of the delicate goods inside. Are you prepared to claim responsibility? Could you financially handle a lawsuit?

If a claim was to result, your insurance provider has the ability to investigate the reported loss or damage. As the warehouse owner, if you are legally liable for loss or damage your policy will respond and defend and pay settlements with the limits purchased.

And what if your storage company is sued for something that is not your fault, like a fire caused from lightning? With a warehouse legal liability policy, defense costs related to the suit can also be covered if your particular policy includes a “duty to defend”.

All in all, it’s crucial that as a warehouse owner you protect your business reputation by making your liability risks a top concern. At Wolpert Insurance, we offer a unique variety of safety, compliance, and risk management tools to enable you to run your business safer and be more profitable. Interested in learning more about our movers insurance coverage? Contact Wolpert Insurance today for a free movers insurance quote!