Words use are very powerful when speaking to the customer which could have a huge impact on the outcome of the move/ratings given by them. As a Carrier, you are liable for the value of the goods while in your possession. We all know the different levels of liability, and neither of them must never be described as Insurance!
We frequently hear customers say “We were given basic insurance for our move” and “We purchased insurance coverage of $50,000.” So what is the big deal?
The Power of a Single Word
The biggest confusion between insurance and valuation is when the sales representative explains to the shipper that they (mover) provide “basic insurance” when in fact it’s “basic valuation”. You must be aware that this practice may constitute as insurance fraud and could result in “civil and criminal penalties”.
Coverage vs Insurance
Only an insurance company or a licensed agent can sell you insurance. As a carrier, you are not allowed to sell insurance unless you are also a licensed insurance agent. Valuation coverage is regulated by Federal law and is a level of liability that shipping companies assume. Under Federal Law, interstate movers must offer two different liability options referred to as Valuation Coverage: (1) Full Value Protection (2).Released Value.
Knowledge is the key
- Both full value protection & basic valuation must be offered to the customer.
- Shipper must make a clear choice of valuation protection at the time of pick up.
- Keep in mind that default valuation coverage is “full value protection” not $0.60 per lb (basic valuation).
1 word: That is all it takes to make a mistake that could have civil and criminal penalties. As a business owner, we want to make sure we not only are aware of regulations but that our staff is aware to avoid penalties of any kind. Once you share this knowledge, your staff will know the power of a single word.
To learn more about household goods compliance, training and to learn about required legal documents, send us a note or call us.