Interview with Kelly Moran, FVP Insurance Program Manager
Q: Some moving companies are a still a little confused about why they would want or need FVP insurance. Can you shed some light on this for us?
A: Yes. Full Value Protection Insurance is a genius, first-of-its-kind insurance program. Here’s how it works: When a moving company offers a customer valuation on the bill of lading, and the customer has a claim, FVP Insurance covers the claim according to the terms of the policy. It’s a win-win. Shippers get better protection for their goods, and moving companies avoid claim hassles. It’s a new concept because FVP insurance is the first product of its kind in the industry and the new FVP regulations have only been in place for a little over a year. Here’s what moving companies need to know about the advantages of FVP insurance:
- With this insurance, moving companies can safely offer Full Value Protection coverage to shippers as per the bill of lading. This innovative policy is designed to insure the mover when a shipper purchases valuation or chooses the basic liability coverage. It saves movers time and shields their other business policies from FVP claims.
- This insurance allows them to make additional revenue by taking a retail mark-up on the price of Full Value Protection coverage.
- If a customer files a claim, movers can avoid wasting time and energy on claims management – we take care of gathering all claims information and adjusting the claim. We then send the results (and any claim payment) directly to the moving company (the insured party) and the moving company pays the shipper directly.
Q: Have there been any important changes since the program was first introduced?
A: Yes. Based on feedback from our moving company affiliates, we now offer more deductible options, starting as low as $250. The deposit has also been reduced to $250. Both of these changes have been quite popular.
Q: Does the program work for both intrastate and interstate movers?
A: Yes. As an intrastate mover, your state may require that you offer more coverage to the shipper than your legal liability. This FVP program will meet that need.
On the other hand, as an interstate mover, many of your customers request additional coverage beyond the standard legal liability of $.60 per pound per article.
This is a full value protection program in which the insurance company will insure you, the moving company, per a specific set of terms and conditions, and you will still be in compliance with the FMCSA/DOT rules as stated on the bill of lading.
Q: How should moving companies explain Full Value Protection to their customers?
A: Customers simply need to know that full value protection coverage provides more protection than the standard $.60 per pound per article. It’s the “middle of the road” option for coverage. If they want to really maximize protection, they should get third party moving insurance.
When customers choose FVP coverage, moving companies should instruct their customers to complete the bill of lading selecting the full value coverage option. The customers will select the desired amount of coverage and the deductible level.
Q: Tell me more about how moving companies can make additional revenue.
A: Moving companies can set their own retail fees to charge the customer for coverage, and list their retail fees on the bill of lading. However, moving companies only pay the wholesale cost of coverage, according to a fee schedule that is based on factors such as the deductible level, the amount of coverage requested and your loss history. By charging retail insurance premiums and paying wholesale insurance premiums, moving companies can create a profit stream.
Q: What happens if there is a claim?
A: If a claim is filed, Moving Insurance, LLC (dba Relocation Insurance Group, LLC) will collect all relevant claims documentation, and adjust the claim per the contract and bill of lading. We then turn the claim over to the moving company, who is the actual insured party. The moving company then contacts its shipper with the final resolution. All claim payments will be made directly to moving companies so they can deliver payments to customers.
Q: How can I get started?
A: Moving companies can download our Get Started Kit and complete the application on page 4. Once they submit the application along with your deductible and the required paperwork, and receive approval, they are ready to start generating a revenue stream through their full value protection offering.
