INSURANCE

The Mover's Liability for Loss and Damage

All moving companies are required to assume liability for the value of the goods that they transport. However, there are different levels of liability, and consumers should be aware of the amount of protection provided and the charges for each option.
Basically, most movers offer four different levels of liability under the terms of their tariffs and pursuant to the Surface Transportation Board's Released Rates Orders, which govern the moving industry.

Option 1: Released Value

This is the most economical protection option available. This no additional-cost option provides minimal protection. Under this option, the mover assumes liability for no more than 60 cents per pound ($1.32 per kilogram), per article. Loss or damage claims are settled based on the pound weight of the article multiplied by 60 cents (or the kilogram weight multiplied by $1.32). For example, if a 10-pound (4.54 kilogram) stereo component, valued at $1,000 were lost or destroyed, the mover would be liable for no more than $6.00. Obviously, the shipper should think carefully before agreeing to such an arrangement. There is no extra charge for this minimal protection, but you must sign a specific statement on the bill of lading agreeing to it.

Option 2: Declared Value

Under this option, the valuation of your shipment is based on the total weight of the shipment times $1.25 per pound ($2.75 per kilogram). For example, a 4,000-pound shipment (1814.4 kilogram) would have a maximum liability value of $5,000.00. Any loss or damage claim under this option is settled based on the depreciated value of the lost or damaged item(s) up to the maximum liability value based on the weight of the entire shipment. Under this option, if you shipped a 10-pound (4.54 kilogram) stereo component that originally cost $1,000, the mover would be liable for up to $1,000, based on the depreciated value of the item.
Unless you specifically agree to other arrangements, the mover is required to assume liability for the entire shipment based on this option. Also, the mover is entitled to charge you $50.00 for each $1,000 (or fraction thereof) of liability assumed for shipments transported under this option. In the example above, the valuation charge for a shipment valued at $5,000 would be $250.00. Under this option, your shipment is protected based on its depreciated value, and the mover is entitled to charge you a fee for this extra protection.

Option 3: Lump Sum Value

Under this option, which is similar to Option 2, if the value of your shipment exceeds $1.25 per pound ($2.75 per kilogram) times the weight of the shipment, you may obtain additional liability protection from the mover. You do this by declaring a specific dollar value for your shipment. The amount you declare must exceed $1.25 per pound ($2.75 per kilogram) times the weight of the shipment. The amount of value that you declare is subject to the same valuation charge ($50.00 per $1,000) as described in OPTION 2. For example, if you declare that your 4,000-pound (1814.4 kilogram) shipment is worth $10,000 (instead of the $5,000 under OPTION 2), the mover will charge you $50.00 for each $1,000 of declared value, or $500.00, for this increased level of liability. If you ship articles that are unusually expensive, you may wish to declare this extra value. You must make this declaration in writing on the bill of lading.