Moving Company Insurance Tip of the Week:
Improve Claim Outcomes with Quality Paperwork Practices
Moving company insurance claim outcomes often hinge on the quality of the paperwork provided. Paperwork is directly linked to customer satisfaction. If the paperwork is illegible, incomplete or incorrect, it leads to a negative experience for both the client and moving company throughout the claims process. Keep reading to discover just how essential accurate paperwork is to your company.
When a moving insurance claim is received at the insurance company, there are four basic documents that a claims adjuster reviews.
1. Bill of Lading: This is the actual contract between the moving company and the customer, providing all the details and agreements of the move, complete with signatures from both parties.
2. Inventory forms: These forms are created at origin by the driver or crew leader, and establish not only what items are in the shipment, but also designates if boxes or containers are packed by the mover (CP) or packed by owner (PBO). Additionally, this creates a record of the condition of the furniture and other unpacked items at the time of loading. The customer and driver both sign the inventory at origin to confirm this is an accurate record of the items being moved and the condition at time of loading. These same inventory forms are checked off, and any damages noted, then signed by the customer at delivery to ensure that the all the belongings have been transported safely. Any loss or damage should be noted on the paperwork at this time. This is the only way to substantiate that a loss or damage occurred while the goods were in the possession of the carrier.
3. Weight tickets establish the weight the customer was charged for the move. Another popular method is for the moving company to charge the customer for the transportation based on the cubic feet of goods being moved.
4. Packing lists or Packing Manifest: If this information is not specifically listed on the bill of lading, this records the exact number and size of boxes, cartons or containers and other packing materials and crates the moving company provides, and details the items and services they have charged the customer for, including if they actually packed and/or unpacked any of these boxes, cartons or containers.
There are special circumstances when the insurance company will ask for extra paperwork such as the original quote given to the customer to determine what specific items were being packed by the mover as part of the overall quote for the move.
Often poor quality paperwork can lead to frustration for the customer and the moving company. For example, let’s say a customer discovers damaged goods after the move and decides to file a claim. Take a look at a few possible resulting scenarios:
- Scenario #1: Paperwork is complete and sent to the insurance company within a few days of requesting it. Based on the accurate paperwork, the insurer accepts the claim and quickly sends a check to the client. The customer is satisfied and tells his friends and family about his positive experience.
- Scenario #2: Paperwork is complete and sent to the insurance company within a few days of receiving the customer claim. Based on the information included in the paperwork, the insurer decides to deny the claim, showing proof to the customer. The customer is not pleased, but satisfied because the claim was handled promptly and fairly.
- Scenario #3: Paperwork is incomplete. The insurance company follows up and requests additional information. The moving company takes weeks to respond or in some cases, doesn’t respond at all. After a certain timeframe, the insurer reviews available information. If the claim is denied, the customer is extremely dissatisfied. If the claim is accepted, the customer is content but dissatisfied by the length of time involved. The purpose of moving insurance is to increase customer satisfaction. In this scenario, the claim impacts the moving company’s loss ratio without improving customer loyalty or word-of-mouth advertising. Insurance has not been leveraged to create a competitive advantage.
As you can see, accurate, and complete paperwork directly impacts the moving company’s profitability and customer satisfaction. Use these tips to improve your paperwork:
*Hold quarterly refresher courses for drivers to go over all the essentials of accurate paperwork.
*Make sure employees understand how crucial accurate documentation can be to the company, and how poor paperwork practices affect your bottom line either through bad customer reviews or poor loss ratios.
*Send paperwork in to the insurance company in a timely manner. The longer it takes, the longer the customer waits for an answer – an unpleasant situation.
There’s no arguing that moving company insurance paperwork can be a pain. However, it’s a small inconvenience that can make a big difference to your bottom line. Take steps to improve the quality of your paperwork and advance your moving company today!
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