What insurance should a removals company have?
Most people are familiar with the idea of insurance and its importance in the modern world. However, when it comes to moving insurance many removal companies are actually in the dark about the exact value it can bring.
In this post, we're going to look at the types of insurance that a removal company might need, including what needs to be covered and what benefits it brings from moving companies.
Do removal companies need insurance cover?
Yes. If you're looking to be a reliable and professional removal company, you need removal insurance. In fact, you need a variety of different insurance coverage:
- Vehicle insurance
- Public liability insurance
- Goods in transit insurance
- Employers liability insurance
As this may seem like an extensive and overlapping list, it is reassuring to know that a variety of business insurance companies will offer specific removal companies insurance cover with a policy covers all of the above.
Why do removal companies need insurance?
Obviously, removal insurance policies offer protection in case anything happens while helping your customers. A lot of accidents can happen during the moving process - many that are out of your control. This is why it is so important for removal companies to have insurance.
However much training your team have, mistakes can be made. Moving around heavy boxes and furniture is fraught with low-level risk, as is driving the belongings to their next home.
Depending on your policy, you can be covered for accidental damage to your customers belongings or their home, as well as loss or breakages. You should also make sure you are fully insured against any injuries to your staff, your customers and even the general public.
While some standard home insurance cover includes removals from a homemovers perspective, it isn't wise to leave the insurance considerations solely down to your customers. The cover will not be extensive enough in scope or financial compensation.
However, a second important reason for securing moving insurance for your removal company is to earn the trust of potential clients.
Earning trust is a vital way of securing customers as a removal company. You need to prove you can be trusted with both their valuable belongings as well as the stress and restrictions of moving day itself. Showing that you're conscientious enough to have insurance will help with this - and it also shows that you are confident in your ability to handle issues if they do arise as well.
What are the different types of insurance a removal insurance policy should include?
Vehicle Insurance
As with all UK vehicles, you will need vehicle insurance cover in order to drive on the roads. Depending on the size of your removal company, you may be able to get fleet insurance and discounts as long as you have some sort of policy to cover your vehicles.
Public Liability Insurance
This type of insurance policy will cover you if anyone or anything gets hurt or damaged by your removal company. As it covers such a broad range of possibilities, you should look for cover that offers extensive protection between £2-£5,000,000 realistically.
Another benefit of Public Liability Insurance is that it is a term a lot of customers will recognise. This may help them feel protected by it and will definitely help encourage a professional impression for your removal company.
Goods in Transit Insurance
While public liability covers both belongings and people during the moving process, Goods in Transit insurance will cover the loss or damage of items when they are being moved or in your van. This is another important removal insurance policy specifically for removal companies.
Employers Liability Insurance
This type of insurance policy will cover any staff you employ while they are working. It is a vital part of staff welfare, especially due to the risks involved in the removals process.
If you employ other staff it is actually a legal requirement that you hold this insurance cover.
What is removal company insurance cover?
When it comes to arranging removals insurance cover, most removal companies choose to go with an industry-specifc insurance policy. While there is nothing to stop you from collecting a range of separate insurance policies, it can get complicated knowing exactly how much of each cover type you need, which types are essential and which are appropriate for your particular.
Finding an insurance firm or broker who deals extensively - or even exclusively - with removals insurance will take all the stress out of finding a policy that gives you all the coverage you need.
Many companies even offer all-in-one removals insurance that covers all the issues you need in one.
They will help make sure your policies cover potential legal costs, meet legal requirements and protect your staff, your removal business and yourself.
How much does removal insurance cost?
Unfortunately, it is impossible to give any guidance on how much removal insurance costs. This is because there are so many insurance options, and so many company variables to consider. The total cost will be calculated based on a range of factors including how much cover you want as well as the size of your company and the level of training your staff have amongst other things.
This long list of factors is also why you shouldn't just take the cheapest quote you find. Take the time to explore a policy before you commit to it, and make sure it offers the right cover for you. As with all types of insurance, there is no point paying the premium only to find out you aren't able to claim when you need to.
Do you need a license to do removals?
Many people need clarification on the removals insurance you need as a moving company and a license. To do removals you do need a special vehicle operator license, but this is a legal requirement that is completely separate from your movers insurance.
If you own a removal company, being covered by relevant insurance is your legal and moral obligation. It will also build a positive image for your business, providing an essential boost to your marketing, letting you stand out against competitors and win more customers.