Wednesday, March 30, 2016, AM | 1 Comment
A removals and moving company handling clients’ possessions without any form of insurance coverage shouldn’t be trusted.
Australian authorities understand the pilferage and accidental occurrences and incidents that befall moving companies.
For this reason, the Australian Furniture and Removers Association, AFRA, has set up sets of rules that guide operations of these companies.
Goods have to be covered while on transit and also in storage. Burglary, lost items and damaged goods have to be covered and the company liable for whichever incident.
The type of insurance coverage taken up by a company is determined by different factors. The factors include:
General Security Status
When the security of a region or country is volatile, the insurance policy considered will be higher than that of safe places. This is because the goods can be stolen on transit or in storage. Therefore, every removals company should have this in mind.
Value of Possessions
A company that deals with moving of high value company and personal assets is needed to take a comprehensive cover to cover all the valuables in case of accidents.
Types of Insurance
An all-renters insurance policy covers damage to possessions on transit. A moving company is responsible for moving items safely. The company’s liability should cover and offer replacement costs in case of damage to property.
Protection against theft and accidents should be covered besides damage on transit.
Accidents occur all the time and a moving truck getting involved in an accident wouldn’t n be an alien thing. Therefore, a removals and moving company should have in an insurance coverage policy that covers compensation for the trucks or van in transit.
Damaged possessions on transit should also be covered for the client’s sake. This therefore means that a comprehensive motor insurance would be viable for a moving company.
Fires caused by electrical faults or any other reason causes damage to possessions. Storage in Perth, Brisbane and Melbourne is done to ensure that all your possessions are in fireproof containers.
However, in cases where the fire is too much and no possessions are salvaged, insurance cover for will come in handy to compensate the owners. It is also important for owners of these possessions to have insured their valuables in case the company is unable to cover the whole cost of the valuables.
The goods may not be redeemed but a compensatory value will be given. This offers the customers relief, laces that experience natural occurrences affecting business like floods and natural fires are more likely to pay higher insurance premiums.
In conclusion, insurance is an important entity for any removals and moving company. The code of conduct set by the AFRA recommends the following in terms of insurance:
General Cover Limit: that every removals company should carry a legal liability with a minimum cover of $500,000.00
Vehicles for Moving be covered for third party property damage, whether the vehicles are leased or owned by the company a minimum cover of $20 million should be taken.
Public Liability for good stored by the company should be insured at a minimum of $10 million. This covers goods in physical and legal control of the removals company.
Jeannine Higgins is an Insurance Consultant working with the top Removals, Moving and Storage in Perth. She understands the risks that befall businesses in this sector and advices entrepreneurs to take up insurance covers with comprehensive policies for continuity of business after incidences. Read more of her insurance advice on Australia’s Property Magazine.
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