Although the moving industry is regulated by both federal and state governments, there are still companies in today’s economy that operate under the radar of regulation. They do so by not properly insuring their business, employees, or your belongings when in their care.
The reasons are obvious: reduce overhead by not spending valuable dollars on business insurance; charge the consumer a lower fee; or just plain carelessness or ignorance on the business owner’s part. Truthfully, the dangers of hiring an uninsured moving company go far beyond the benefit of saving a few extra dollars on moving day.
Here are 3 dangers of hiring an uninsured moving company:
- You are taking on more personal liability while the crew is onsite at your property. If the moving company does not have proper general liability coverage or worker’s compensation insurance to cover their employees, you could be sued by one of their employees if they are injured.
- Your possessions are not protected while in transit on the company truck. If the moving company does not carry cargo insurance, then you have no recourse if the truck crashes and all your stuff is lost due to damage or fire. Federal law mandates that all licensed and regulated moving companies insure your items at a minimum of 60 cents per pound. Some companies may even offer full valuation coverage for a fee.
- The owner does not respect authority nor do they care about breaking the law by operating an uninsured moving company. If they do not care enough to protect you on one of the most stressful days of your life, then how could you possibly trust them with your belongings? The last thing you need to worry about is the character of the moving company that you’ve entrusted with all your earthly possessions.
So how do you know if you are hiring an uninsured moving company? An easy way to find out if the companies you are interviewing are legal and insured is to check the FMCSA’s Company Snapshot. Simply enter each company’s name in the field to find out if they are registered with the DOT (Department of Transportation) and up-to-date on their insurance coverage. The time that is takes to run a query on this website is more than worth your peace of mind on and after moving day.