MOVING COMPANY INSURANCE

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Do Moving Companies Need Insurance?


  1. Requirements a Moving Company Needs for an Insurance Quote
  2. Public Liability Insurance: What Is It & What Does It Cover?
  3. Freight & Cargo Insurance
  4. Motor Carrier DOT Requirements
  5. Freight Forwarder DOT Requirements
  6. Arbitration Program DOT Requirement

1. Requirements a Moving Company Needs for an Insurance Quote

If you are a licensed moving company and you want an insurance quote you need to make sure to meet the legal requirements for insurance. This includes:
  • Public Liability
  • Freight
  • Cargo (two types)
  • BOC-3
  • Workers Compensation
  • Surety Bond

2. Public Liability Insurance: What Is It & What Does It Cover?

Movers are required to carry public liability insurance which covers bodily injury, property damage, and environmental restoration insurance. Your insurance company is responsible for filing the appropriate paperwork with the Department Of Transportation using their own forms to prove that you are in compliance with the public liability insurance requirements.

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3. Freight & Cargo Insurance 

A minimum freight insurance of $750,000.00 to $5,000,000.00 should be selected depending on the type of shipments you are transporting. You can choose coverage of $300,000.00 for any non-hazardous freight only if the freight is being transported in a vehicle that weighs 10,001 lbs. or less.

The minimum cargo insurance of $5,000.00 per vehicle and $10,000.00 per occurrence is required to be obtained by the Department of Transportation. Your insurance company should also file the appropriate paperwork showing that you are in compliance with the cargo insurance requirements. You must also file a BOC-3 with the Department Of Transportation designating a process agent.


A process agent is a representative that has the authority to receive any court papers on behalf of the company for any court proceedings that may be brought against the company.



4. Motor Carrier DOT Requirements

All motor carriers, regardless of the types of transportation they are providing, are required to file a BOC-3.

While the Department of Transportation does not hold any worker's compensation amount requirements, it is required to be held by each state and the DOT will request proof that you are in compliant with your state’s worker’s compensation regulations if they conduct an inspection.

5. Freight Forwarder DOT Requirements

If you are a freight forwarder, you must have a surety bond with a minimum of $75,000.00.

6. Arbitration Program DOT Requirement

Another requirement you may need to prove you are in compliance with is your participation in an arbitration program. An arbitration program is a company that will provide arbitration service if a claim cannot be settled through the claims process. An arbitrator holding legal authority will review the claim to determine an amount that the movers must pay to settle the claim. Moving Authority has established an arbitration program to help our movers be compliant with all of the DOT requirements. For more information about Moving Authority’s arbitration program, Click Here.

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In the United States, shipments larger than about 7,000 kg (15,432 lb) are classified as truckload freight (TL). It is more efficient and affordable for a large shipment to have exclusive use of one larger trailer. This is opposed to having to share space on a smaller Less than Truckload freight carrier.

“The association of truckers with cowboys and related myths was perhaps most obvious during the urban-cowboy craze of the late 1970s, a period that saw middle-class urbanites wearing cowboy clothing and patronizing simulated cowboy nightclubs. During this time, at least four truck driver movies appeared, CB radio became popular, and truck drivers were prominently featured in all forms of popular media.” — Lawrence J. Ouellet

Medium trucks are larger than light but smaller than heavy trucks. In the US, they are defined as weighing between 13,000 and 33,000 pounds (6,000 and 15,000 kg). For the UK and the EU, the weight is between 3.5 and 7.5 tons (3.9 and 8.3 tons). Local delivery and public service (dump trucks, garbage trucks, and fire-fighting trucks) are around this size.

The moving industry in the United States was deregulated with the Household Goods Transportation Act of 1980. This act allowed interstate movers to issue binding or fixed estimates for the first time. Doing so opened the door to hundreds of new moving companies to enter the industry. This led to an increase in competition and soon movers were no longer competing on services but on price. As competition drove prices lower and decreased what were already slim profit margins, "rogue" movers began hijacking personal property as part of a new scam. The Federal Motor Carrier Safety Administration (FMCSA) enforces Federal consumer protection regulations related to the interstate shipment of household goods (i.e., household moves that cross State lines). FMCSA has held this responsibility since 1999, and the Department of Transportation has held this responsibility since 1995 (the Interstate Commerce Commission held this authority prior to its termination in 1995).

Business routes always have the same number as the routes they parallel. For example, U.S. 1 Business is a loop off, and paralleling, U.S. Route 1, and Interstate 40 Business is a loop off, and paralleling, Interstate 40.

In some states, a business route is designated by adding the letter "B" after the number instead of placing a "Business" sign above it. For example, Arkansas signs US business route 71 as "US 71B". On some route shields and road signs, the word "business" is shortened to just "BUS". This abbreviation is rare and usually avoided to prevent confusion with bus routes.

A relatable reality t.v. show to the industry is the show Ice Road Truckers, which premiered season 3 on the History Channel in 2009. The show documents the lives of truck drivers working the scary Dalton Highway in Alaska. Following drivers as they compete to see which one of them can haul the most loads before the end of the season. It'll grab you with its mechanical problems that so many have experienced and as you watch them avoid the pitfalls of dangerous and icy roads!

The American Association of State Highway and Transportation Officials (AASHTO) is an influential association as an advocate for transportation. Setting important standards, they are responsible for publishing specifications, test protocols, and guidelines. All which are used in highway design and construction throughout the United States. Despite its name, the association represents more than solely highways. Alongside highways, they focus on air, rail, water, and public transportation as well.

The Federal Motor Carrier Safety Administration (FMCSA) is an agency within the United States Department of Transportation. The purpose of the FMCSA is to regulate safety within the trucking and moving industry in the United States. The FMCSA enforces safety precautions that reduce crashes, injuries, and fatalities involving large trucks and buses.

Full truckload carriers normally deliver a semi-trailer to a shipper who will fill the trailer with freight for one destination. Once the trailer is filled, the driver returns to the shipper to collect the required paperwork. Upon receiving the paperwork the driver will then leave with the trailer containing freight. Next, the driver will proceed to the consignee and deliver the freight him or herself. At times, a driver will transfer the trailer to another driver who will drive the freight the rest of the way. Full Truckload service (FTL) transit times are generally restricted by the driver's availability. This is according to Hours of Service regulations and distance. It is typically accepted that Full Truckload carriers will transport freight at an average rate of 47 miles per hour. This includes traffic jams, queues at intersections, other factors that influence transit time.  

As the American Interstate Highway System began to expand in the 1950's, the trucking industry began to take over a large market share. That is, a large share of the transportation of goods throughout the country. Before this era, trains had been relied on to transport the bulk of the goods cross country or state to state. The Interstate Highway System was influential as it allows for merchandise to travel door to door with ease. Since then, truckload carriers have taken advantage of the interstate system, especially when performing a long distance move. Typically, they bring the merchandise from one distribution center of the country to another part of the country. The increase in truckload freight transportation has reduced the time it takes to transport the goods. Whether the freight was manufactured or produced for the different areas internationally, the time it takes to transport goods has decreased dramatically.  

Business routes generally follow the original routing of the numbered route through a city or town. Beginning in the 1930s and lasting thru the 1970s was an era marking a peak in large-scale highway construction in the United States. U.S. Highways and Interstates were typically built in particular phases. Their first phase of development began with the numbered route carrying traffic through the center of a city or town. The second phase involved the construction of bypasses around the central business districts of the towns they began. As bypass construction continued, original parts of routes that had once passed straight thru a city would often become a "business route".

The concept of a bypass is a simple one. It is a road or highway that purposely avoids or "bypasses" a built-up area, town, or village. Bypasses were created with the intent to let through traffic flow without having to get stuck in local traffic. In general they are supposed to reduce congestion in a built-up area. By doing so, road safety will greatly improve.   A bypass designated for trucks traveling a long distance, either commercial or otherwise, is called a truck route.

Released in 1998, the film Black Dog featured Patrick Swayze as a truck driver who made it out of prison. However, his life of crime continued, as he was manipulated into the transportation of illegal guns. Writer Scott Doviak has described the movie as a "high-octane riff on White Line Fever" as well as "a throwback to the trucker movies of the 70s".

The American Association of State Highway and Transportation Officials (AASHTO) conducted a series of tests. These tests were extensive field tests of roads and bridges to assess damages to the pavement. In particular they wanted to know how traffic contributes to the deterioration of pavement materials. These tests essentially led to the 1964 recommendation by AASHTO to Congress. The recommendation determined the gross weight limit for trucks to be determined by a bridge formula table. This includes table based on axle lengths, instead of a state upper limit. By the time 1970 came around, there were over 18 million truck on America's roads.

A Ministry of Transport (or) Transportation is responsible for transportation within a country. Administration usually falls upon the Minister for Transport. The term may also be applied to the departments or other government agencies administering transport in a nation who do not use ministers. There are various and vast responsibilities for agencies to oversee such as road safety. Others may include civil aviation, maritime transport, rail transport and so on. They continue to develop government transportation policy and organize public transit. All while trying to maintain and construct infrastructural projects. Some ministries have additional responsibilities in related policy areas as mentioned above.

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Commercial trucks in the U.S. pay higher road taxes on a State level than the road vehicles and are subject to extensive regulation. This begs the question of why these trucks are paying more. I'll tell you. Just to name a few reasons, commercial truck pay higher road use taxes. They are much bigger and heavier than most other vehicles, resulting in more wear and tear on the roadways. They are also on the road for extended periods of time, which also affects the interstate as well as roads and passing through towns. Yet, rules on use taxes differ among jurisdictions.

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