60 Cents Per Pound Insurance

Understanding “60 Cents Per Pound” Insurance Coverage

Your company must do all that it can to maintain success. What is a key action toward doing so? It is ensuring that your employees understand all relevant terminology. One of the key terms they should know is “60 cents per pounds insurance.” Recognizing what this means will benefit both your workers and their customers.

Every moving company’s required by law to offer customers two forms of coverage. That insurance coverage is necessary for all out-of-state moves. There are no exceptions to this. Your employees should get trained to offer coverage. When should they offer it? As soon as a customer agrees to use your services. The Moving company must comply with a published moving tariff.

The First Released Value Coverage Option

The first coverage offers known as “released value protection.” This term is interchangeable with “60 cents per pound.” What is the basic definition of it? It’s rather simple. It means that customers get reimbursed for damaged goods at sixty cents per pound. Almost any item on the planet’s considered a good. From staplers to $7,000 televisions.

The quotes given by your moving company should always include this quote. Let’s only hope that your customers do not ask the following question. “Wait a second. My goods are worth nothing more than sixty cents per pound? I should move them myself instead of paying a company to do so.”

The Second Coverage Option is Full Value Protection

Of course, every item that a customer provides is worth more than sixty cents per pound. That is why long-distance moving companies offer an extra method of coverage. It’s known as “full-value protection.” What is that coverage based on? The valuation of the specific contents getting loaded onto the truck.

The cost gets based on 1% of the valuation. Here is an example. Say your customer states that his or her items are worth $35,000. This means the customer should pay $350. What is that payment for? Full-value protection. That protection provides your company with options if a mistake takes place. There are three types of mistakes:

1) An item gets damaged.

2) An item gets destroyed.

3) An item gets lost.

This is the “full replacement value.” This involves your company getting to decide how to make amends for any of the three types of mistakes.

Be Prepared to Make Amends Before Move Starts

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Your company has two main options when a mistake occurs depending if the moving contract is Binding or Non-Binding estimate:

1) Your Mover company can replace an item with the same exact one. Or, your company can replace the item with one that is similar and has the same value.

2) Your mover company can pay for the item to get repaired. This is so it will have the same value as it did before the error.

Say one of your workers damages a four-year-old refrigerator. Your company should not replace that refrigerator with a brand-new one. Instead, you can offer the customer the fair-market value valuation for that refrigerator.

Here is a loophole that the Surface Transportation Board has in place. Your company is not required to reimburse customers for items worth more than 100 dollars a pound. The only exception is if the item gets listed in all the shipping documents. But that does not happen often. The moving company must also have an active “Arbitration Program DOT” that is qualified. It is a customer’s right to add full value valuation protection.

 

Third Party Insurance – Known as Moving Insurance

 

A customer can also purchase third party insurance before the movers arrive. If a moving truck arrives no moving insurance will bond your job due to insurance policies. The client would still have the basic 60 cents per pound per article coverage listed on the bill of lading.

If you have homeowners or renters insurance with say like state farm, these policies already have mandatory select for moving insurance. This means that you will probably be covered in case a couple of items are broken or lost. Please make sure you have customers check if their homeowners insurance or basic renters insurance protection covers their shipment released value option that they want.