Moving Company Insurance and Licenses

You are about to move and in search of a reliable moving company in New Jersey or New York that will do the job right, and is licensed and insured. When you search the web site of different movers, you notice that all of them claim to be “fully licensed and insured.” What does that mean, exactly? What sort of license is required for movers? Who, in fact, is really insured?

Let’s break it down, beginning by separating the license from the insurance.

There are three main types of moves: local, interstate, and international. Each type of move requires its own license. The fact that a moving company is properly licensed to move your possessions within New Jersey or New York doesn’t mean that they can move you to California or Europe.

To be licensed for local move, a license from that state is required. In New Jersey, it is handled by the New Jersey Consumer Affairs while in New York it is handled by the NYDOT. Issuing the license is not a complex procedure but a company needs to proof having a physical location in the state, proof of insurance, state their rate tariff, among other requirements.

If a mover wants to transfer goods between states (further than 100 miles), they need a US DOT license. The license is issued by the US DOT, which requires that movers follow the proper reporting and procedures.

Finally, we come to the license for international moves. This license is actually for booking/buying ocean and airfreight—not for the actual moving job. The license to forward shipments over sea is called FMC (Federal Maritime Commission). There are two types of licenses. The first is known as a Freight Forwarder, and allows the mover to purchase space on a vessel for the shipment, and to issue a bill of lading. The second is called an NVOCC (Non-Vessel Operating Common Carrier.). If you are moving overseas, make sure that your mover has a Freight Forwarding or NVOCC license.

Let’s discuss insurance, now. In addition to the obvious vehicle insurance, movers should also carry liability insurance, which covers them if a claim or lawsuit arises. Workers’ Compensation is also necessary, as this coverage protects you, the client, if one of the movers is injured on your property while providing moving services. You may request that the mover to present their certificate of insurance (COI) prior to move date.

When a moving company states they are fully insured, it means that THEY are insured, not you or your shipment. Even though your mover has the various policies in place, do not expect a compensation if your television is smashed during the move. You are not entitled to a full damage reparations unless you have purchased the proper insurance coverage for the move. This is just the way it works. Similarly, if you don’t have automobile insurance and your car is involved in an accident, well, you’ve got a problem. This becomes an issue when less-than-honest movers neglect to explain and clarify the details of their insurance coverage.

Movers must provide their clients with free, basic cargo claims coverage. The basic coverage in New Jersey is $0.60 per pound, per article, while in New York it is $0.30 per pound, per article. For instance, if an item weighing 100lbs suffers damage, you will be compensated $60.00 in New Jersey and $30.00 in New York. If you opt for basic coverage, do not expect any additional compensation.

Therefore, carefully consider whether additional coverage is necessary, and if so, how much. When lavish furniture and fine art are involved, without a doubt, additional insurance coverage is necessary. On the other hand, there are clients that are willing to take the risk of not purchasing additional coverage. They figure that the cost of insurance + the deductible (there is always a deductible) is likely to be higher than damages to their not expensive items.

Insurance options vary for local, long distance and international moves. There is also insurance for storage when needed. Your mover should describe the various coverage options, and the pros and cons of each. It is also possible to purchase coverage directly from an insurance agency, such as www.movinginsurance.com, which specializes in the relocation sector.