There are several things you need to consider when determining if a moving company must be bonded. These include the company's insurance coverage and licensing, and the bond's requirements. If you aren't sure whether a company needs to be bonded, consult with a surety company or an attorney.
Moving company insurance requirements
The best way to ensure your possessions are protected during a move is to make sure that your moving company has insurance coverage. Insurance for your items should include replacement or repair costs, as well as the total value of the belongings. You should ask your moving company about these policies, and what they cover and don't cover.
General liability insurance will cover most perils, although some conditions may make a particular peril uninsurable. Talking with an agent about your policy details is a good idea to avoid being blindsided by coverage blinds. A general liability policy for a moving business costs between $450 and $1,000 per year.
Moving company licensing requirements
To operate a moving company, it must have a valid license. In addition to a state license, it must have a Federal Motor Carrier Safety Administration (FMCSA) number and inland marine insurance. It must also have a $75,000 guarantee bond. It must also have commercial auto coverage and a commercial liability policy.
There are different requirements for different types of moving companies. For instance, long distance movers need to have a federal license since they will likely be operating across state lines. Local agencies may also require special permits to move household goods. You should find out exactly what licensing requirements are for your specific move.
Generally, a moving company must be licensed for two types of moves: intrastate moves and interstate moves. It must also have a drug screening program to screen drivers. After a company passes the New Entrant Safety Assurance Program, the registration becomes permanent. Other licensing requirements may be specific to your region.
Requirements for a moving company to have fidelity bonds
A fidelity bond is an inexpensive way to protect your clients' personal property. This type of insurance, also known as a third party fidelity bond or dishonesty bond, protects your moving company against employee theft. Since theft is common in the moving industry, it's important to ensure that your moving company is properly bonded to protect your assets.
A moving company may need several types of bonds. The most important bond is a surety bond. This bond guarantees that the client will be compensated if the company does anything wrong. To get your money back, you can file a claim against your bond if a moving company employee takes your belongings.
Requirements for a surety bond for a moving company
A surety bond for a moving company is a legal obligation that protects people from negligent or fraudulent behavior. Moving companies can obtain these bonds from a Surety Insurance company. The bond carries a specific amount of coverage, which may vary by state.
The Public Utilities Commission requires California moving companies to have a surety bond before providing service. They are required to be bonded as they transport household goods and personal items by motor vehicle. The commission requires two types of bonds: the one for Protection of Subhaulers and Lessor Employees and the one for C.O.D. shipments. The Public Utility Commission also requires the company to carry insurance for the goods it transports.
A moving company must also file an application for a USDOT Number and provide proof of insurance or bonding information. The application also requires that the moving company provide contact information for a process agent.
Benefits of a surety bond for a moving company
A surety bond for a mover protects you in the event of an unfortunate event. The bond company will pay the difference if a moving company fails to live up to its promises. While the bond company would never seek to make money off of you, it does not want you to lose your money because of a mishap.
Surety bonds are also useful for property owners, as they can be used to recoup a portion of the deposit if there's a problem. They also make property owners feel more confident that their renters will pay their dues. In addition to this, they can be a great way to reduce your move-in costs.