In the transportation industry there are many minute details when it comes to coverage options and if you have not worked closely with it, it can become a little daunting to fully understand. I’ve worked in the insurance sector of the transportation industry for many years and have had many conversations with different brokers, one question that continually gets asked is “What is the difference between an Advice of Coverage and an All Risk Certificate?”
The easiest and most simple response I can provide is that some policies (including policies from Mover’s Choice) already include coverage for the Advice of Coverage and for the insured, it’s intended to further define the valuation on either a Bill of Lading or Warehouse Receipt. The insured may issue this form and retain it for their own files for documentation purposes; however, we do not require a copy unless there is a claim and would ask for it to be submitted at that time.
All Risk Certifications are available to provide additional coverage including what many refer to as “Acts of God”. For this reason, there will be an additional premium charged therefore a certificate must be issued. Because there are a lot of nuances involved with this type of certificate, we can quote and charge up front, based on the annual estimated limits that will be needed. We can also process an endorsement on a case by case basis, as needed.
As many of you can attest to, we’ve had a pretty tumultuous year for more reasons than one. From my perspective as an Underwriter, this year has been somewhat reminiscent of 2012 when Hurricane Sandy made landfall on the eastern seaboard. As tragic as the hurricane itself was, unfortunately some of our insureds located on the east coast were not covered for damages caused by the hurricane (an “Act of God”). Although they had policies in place for warehouse legal liability, there were some that did not purchase an All Risk Certification for the customer’s goods in-storage.
While some may not immediately think that this type coverage may be necessary, it is certainly an additional coverage to think about if you’re located in an area that is prone to natural disasters. Many of us tend to think about our bottom dollar and while that is important, protecting our investments are also equally important.
Written By: Sue Ortiz
Sue has been underwriting for the Movers Choice program and Paul Hanson Partners for 20+ years, mostly handling a large renewal book for moving & storage. Most of her free time is spent with her grandson whose limitless energy keeps her very busy.