January 19, 2021
This time of year, driven by holiday spirit or just finding a great deal, people often give or receive large household items like TVs, dishwashers, washers, dryers, refrigerators and so on.
When preparing for the increase in delivery of these higher value items and related installations following the holidays, especially when mixed with the already high demand COVID-19 has placed on the industry, it’s important to first take a close look at your current insurance coverage to protect against any possible risk.
Installation Services Gone Wrong
With more and more delivery companies becoming the one-stop shop for both delivery and installation services, it’s important to understand that not all insurance policies are created equal. Zeroing in on installation services is a necessity as these claims tend to lie in wait well after the initial service job has been performed. Claims involving leaky washing machines or dishwashers can be significant in nature, especially if they’ve gone unnoticed for an extended period. It’s imperative to discuss these exposures with your insurance agent as some policies can contain exclusions for water-related damages or even for damages incurred as a result of improper installation all together.
Having a good water damage restoration company on the ready is also important. Talk to your agent about allowing the restoration company to service the damage immediately prior to the adjustor getting on-site. Some carriers more familiar with this risk have relationships with these companies already and can be accepting of them getting on the job quickly before the claim has even been filed.
Loading and Unloading Dangers
Just as the consequences of a faulty installation can present problems, so too can the act of getting the goods within the customers’ home in the first place. Any damage to their flooring and/or drywall can add up quickly. Some will even want their entire floor replaced for what may seem to be the smallest bit of damage. Utilizing an insurance carrier that specifically excludes claims derived from loading and unloading will certainly be a problem in this regard. Make sure you choose to do business with an insurance carrier that truly understands the nature of the work you will be performing.
Dishonest Delivery Drivers
Most delivery companies understand the need for cargo insurance to protect the shippers’ goods in their care, custody and control. However, most don’t consider the act of dishonest drivers, and the differing types of insurance coverages that are needed to insure against such a peril. While cargo insurance will protect the goods that are being delivered and installed, it doesn’t account for anything else located in the customers’ home in which they’re doing the installation.
For example, if a team is mounting a television and after leaving, the consumer reports missing jewelry, it’s not a covered loss under a cargo policy. Rather, the need for crime insurance and/or a dishonesty bond comes into play.
Crime/dishonesty coverage is rarely covered in traditional polices. Having an agent that understands the needs of your business is imperative with this coverage line to ensure that acts of your hired and contracted employees are covered, while also covering the goods that may be stolen from both you the employer as well as your customers.
Also, understand that when dealing with crime insurance, there are exclusions when the act is committed by a person with a prior conviction or has committed prior “dishonest acts”. Going through the proper hiring procedure now could save you big later when your contracted or hired employees are entering a home. It’s important to not only have adequate coverage but to complete your due diligence when hiring through proper vetting and background checks.
As always, Risk Strategies Transportation knows this road and the journey ahead. Our team is here to help guide you in the right direction to protect your business. Get in touch.
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Email me directly at bpaulozzi@risk‐strategies.com.
