One of the terrific features of our policy forms designed specifically for the Moving & Storage industry is coverage we provide for Sue and Labor. I know a funny name, but with it comes meaningful coverage, particularly as we see increased weather and wildfire activity, often in areas where it is somewhat unexpected. Our Sue and Labor Coverage does a number of very important things.
- First of all, it will compensate the mover for the reasonable expenses involved to prevent damage to customer’s property, including moving the customers property to a safer location.
- Secondly, it will also compensate the mover for the expenses involved in opening containers to check for damage, if found, restoration to salvageable items and the re-crating for return to storage.
The coverage only applies to expenses incurred to property covered under our policy. This doesn’t extend the covered perils from a direct damage and legal liability basis. We could have direct damage excluded, but this coverage may still apply. Expenses need to be reasonable. The move to another facility should be reasonably the same and the distance not too great.
While this is part of our standard Inland Marie coverage, where we have a higher likelihood of flood (or other natural disaster) you may see us offer a sub-limit on Sue and Labor and Household Goods Under Government Non Temporary Storage. For renewals, we will of course advise you and the customer’s upfront. Additionally, we may ask that the customer’s property be stored on pallets or in racks and not on the ground. For those of you who regularly look at flood scores, risks with a flood score 50 with a negative elevation are considered to be at high risk and making sure storage is not on the ground important. Flood Scores above 60 are at extreme risk and where we will work with you on storage practices, coverages available and limits.
As noted early on, we have increased natural catastrophes, and while it covers more than this, I hope you can see the benefits of this to our insureds and their customers, can be immeasurable in the event of a claim. In fact, several of insureds had call to use this coverage in the wake of Hurricane Ida.
Now for the disclaimer: This article is written in a very broad fashion and will not be used in any claims settlement. The actual policy and circumstances surrounding a claim take precedence. There may be some exclusions and limitations not addressed in this brief article.
Written By: Terri Moran
Terri’s career spans many years with roles in Leadership, Underwriting and Marketing. She was responsible for one of the largest Moving & Storage programs nationally, serviced by dedicated Moving & Storage brokers. In her spare time, in addition to enjoying her family, she is the Chair of the Board of Directors for the Surplus Lines Association of California.
