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Protecting Your Business Property: What If Something Is Lost or Damaged?
There's a lot at stake when you move a business; there's the money you'll spend, the key files, and equipment, and supplies
you're taking from one place to another, and an assortment of necessary furniture, filing cabinets, shelving,
tables, chairs, and so on. When you move, your company's assets are loaded onto a moving truck. And
while most moves may go smoothly, accidents can happen and some items may be lost or damaged.
Your mover is liable for the value of the goods you ask them to transport. But there are different
levels of liability. The level your company chooses will determine the type and amount of compensation you
will receive if something is lost or damaged. Be aware of the various types of protection available and
the fees for each option. This article will serve as a tool to aid you in making the right choice.
The two different levels of liability movers are required to provide are explained below and
in
Your Rights and Responsibilities When You Move, a booklet movers provide to interstate moving customers.
Be sure to read this information carefully and follow the instructions provided to declare a value on your
shipment.
What are your options?
Under Federal regulations, interstate movers must offer two different liability options referred to as valuation
coverage: (1) Full Value Protection and (2) Released Value
(1) Full Value Protection
Under Full Value Protection, your mover is liable for the replacement value of lost or damaged goods in your entire shipment. This is the more comprehensive plan available for the protection of your belongings. Unless you select the alternative level of liability described below—Released Value—your mover will transport your shipment under the Full Value Protection level of liability. If any article is lost, destroyed or damaged while in your mover's custody, your mover will, at its discretion, offer to do one of the following for each item:
Repair the item
Replace it with a similar item
Make a cash settlement for the cost of repair or the current market replacement value
Under this option, movers are allowed to limit their liability for loss or damage to articles of
extraordinary value, unless you specifically list these articles on the shipping documents. An article of
extraordinary worth is any item whose value exceeds $100 per pound (i.e. antiques, art work, etc).
The exact cost for Full Value Protection varies by mover and may be subject to a range of deductible
levels of liability that may reduce your cost. You should ask your mover for written details of their Full Value
Protection plan.
(2) Released Value
The most reasonably priced protection available is Released Value, since it is offered at no additional
charge. However, the protection is minimum. Under this option, the mover assumes liability for no more than
60 cents per pound per article. For example, if your mover lost or damaged a 10-pound stereo component
valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds).
There is no additional charge for Released Value. However, you have to sign a specific declaration on the
bill of lading or contract agreeing to it. But keep in mind, it compensates your company according to the weight of
the item, not its actual value. And, if you do not select Released Value, your shipment will automatically
be transported at the Full Value Protection level of liability and you will be assessed the applicable
charge.
Full Value Protection and Released Value are not insurance policies governed by State insurance laws;
instead, they are Federal contractual tariff levels of accountability authorized under Released Rates
Orders of the Surface Transportation Board of the U.S. Department of Transportation.
Third-party Insurance
If you select Released Value, movers may also propose to sell or obtain for your business separate liability
insurance. The cost of this insurance is not included in the basic move and must be purchased separately
by your company. This is not valuation coverage governed by Federal law, but instead obligatory insurance
regulated by State law.
If you buy this coverage, the mover remains liable for up to 60 cents per pound per article; but the rest
of the loss is recoverable from the insurance company up to the amount of insurance your company purchased. Your
mover is required to issue the policy or other written record of the purchase and provide you with a copy
at the time of the purchase.
Your business also has the option of purchasing insurance from a 3rd party company. Before purchasing insurance,
check your business insurance policy to see if you're already covered.
If you're moving within your State ...
Each State may have its own rules and regulations governing moves inside the State. Check with your State,
county or local consumer affairs agency or State moving association if you're moving to a new location
within the same State.
Keep in Mind ...
Some of your actions may limit your mover's liability. These include:
Packing perishable, dangerous or hazardous materials in your goods without your mover's
knowledge.
Packing your own boxes. You may consider packing your own articles to decrease your
costs, but if the articles you pack are damaged, it may be more difficult to establish your claim against
the mover for the boxes you pack.
Choosing Released Value coverage when your business property is valued at more than 60 cents per pound
per article.
Failing to inform your mover in writing about articles of extraordinary value.
Do not sign a delivery receipt for your business property and goods if it contains any language about
releasing or discharging your mover or its agents from liability. By law, you have nine months to file a
written claim. Strike out this type of language or refuse delivery until an appropriate receipt is provided.
Report loss and damage right away. Your company has 9 months following either the date of delivery, or the
date on which the shipment should have been delivered to file a written claim.
Interstate movers are required to participate in a dispute resolution or arbitration program to address
your comapny's loss and damage claims. If your mover does not supply you with information on its program, ask for
it. All movers are required to provide your business a to-the-point, easy-to-read summary.
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