Does Your Toronto Moving Company Have Enough Liability Insurance?
Toronto moving companies need to protect themselves from lawsuits when they’re packing, moving and storing their clients’ furniture, goods, and valuables. Business liability insurance is the pillar your moving company insurance to protect it from legal claims.
Toronto movers can be liable for damages to their customers’ property during a move or while in storage. A customized moving company insurance policy that’s focused business liability insurance will help protect your moving company from an unexpected accident, mishap, or legal claim.
Western Financial Group, a 100% Canadian company, can help you navigate your business, car, home, and boat insurance during this period of economic uncertainty.
Wherever your small business is located in Toronto, the Greater Toronto Area (GTA), or elsewhere in Ontario, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects what you do.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best business coverage at the best rate for you.
We make the process easy by getting insurance quotes for you to choose from and giving you policy coverage options that suit your Toronto business’s specific needs at the right price for you.
Do you own a Toronto moving or storage company? Western Financial Group has partnered with the Canadian Association of Movers (CAM) to help their members save up to 10% on their Business Insurance and their Employee Benefits Plans.
What is Toronto movers’ insurance?
Moving company insurance protects the moving company from liabilities associated with moving its customers’ furniture, goods, and valuables during the moving process. It protects against the damage or loss of a customer’s goods, property damage, and bodily injury that could all result in lawsuits against a moving company.
Here’s how Toronto moving insurance protects you from lawsuits
Commercial general liability (CGL) insurance
Commercial general liability insurance protects your Toronto moving business against claims of third-party bodily injury or property damage occurring on your premises or as a result of your moving business’s operations. If a customer sues your moving company for damage to their furniture, CGL insurance would help cover the legal costs.
If you were sued, CGL insurance would help cover the legal costs to defend the claim against your Toronto moving company in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
Without CGL insurance, you will be responsible for paying all the costs related to third-party (customers) damage to their property or injuries.
What does commercial general liability insurance help cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Cyber liability insurance
Cyber liability insurance is an important business insurance coverage for Toronto moving companies and storage facility, given the popularity of credit, debit, and online payments. Cyber liability insurance will help protect your company financially in case of a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. That’s when cyber insurance can protect you financially.
Professional liability insurance
Professional liability insurance is also called errors and omissions (E&O) insurance. This type of insurance covers your Toronto moving company or storage company for claims or allegations of professional negligence, mistakes, misrepresentation, misconduct, and failing to deliver a service as promised. It is designed to cover your legal fees, settlements, and customer damages from such claims.
Ask your Western Financial Group business insurance expert if your moving and storage company has enough liability insurance to protect it financially against lawsuits.
How much does moving/storage company insurance cost?
There isn’t a set price for Toronto moving or storage company insurance because these companies are in different locations and provide different services.
These factors are usually considered:
- Location
- Number of moving vans or trucks; makes and models of each
- Number of employees and their driving records
- Services you provide
- Years of experience
- Annual revenue
- Tools and equipment you own or rent
- Any past claims
What other types of insurance do Toronto moving companies and storage facilities need?
Fleet insurance
If your Toronto moving or storage company has 5 or more vehicles, you will need fleet insurance. Fleet insurance is typically cheaper than having individual policies on each of your company’s vehicles.
Depending on the size of your fleet, you could see a substantial saving. If you have fewer than 5 vehicles, you will need commercial auto insurance for your moving company vehicles.
Warehouse insurance
Warehouse insurance covers physical loss or damage to customers’ property when caused by the moving company at specified locations, such as a storage warehouse.
Inland marine insurance
Inland marine insurance is also called heavy equipment insurance or tools and equipment insurance. This kind of insurance protects expensive equipment or items transported by land or temporarily stored in third-party storage facilities. It protects them from damage or loss due to theft, vandalism, or collisions. Inland marine insurance complements cargo insurance during a move.
Cargo insurance
Cargo insurance protects your customers’ goods in transit from damage, loss, or theft while in your moving company’s care or temporarily housed at a third-party storage facility.
Commercial property insurance
Commercial property insurance keeps your Toronto moving company protected from property losses, such as theft or vandalism. You can also add earthquake insurance, sewer backup or flood coverage extensions to protect your moving company headquarters because these coverages aren’t typically included in your business insurance.
Property your Toronto moving company may need to insure
- Buildings and other structures
- Furniture, equipment, supplies
- Computers
- Documents such as payroll, accounts receivable
Business interruption insurance
Business interruption insurance helps support your movers’ business when it can’t operate due to a covered loss. You’ll be responsible for bills such as repairs, rent, and payroll even if your business is forced to close temporarily.
Some examples of losses that can force your moving business to shut down:
- Your moving business is damaged by fire or vandalism
- A disruption in your supply chain
- Damage to a neighboring business prevents your business from operating
Business interruption insurance can help with expenses such as payroll, rent, utilities, property taxes and relocation of your moving business.
Note that business interruption insurance is typically purchased as an add-on, also called an endorsement, to a standard commercial property insurance policy, rather than a standalone policy.
What do I do if I have a claim against my Toronto business?
Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s a commercial insurance checklist
- Do you have the best Toronto business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Toronto moving or storage company. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.
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5 FAQs
What is the difference between liability insurance and cargo insurance?
Liability insurance covers third-party injuries and property damage (to customers and suppliers) by the company's operations. Cargo insurance specifically covers loss or damage to clients' belongings while in the mover’s care, custody, and control, whether in transit or temporary storage.
Are customers’ goods covered if they pack items themselves?
Typically, moving companies are not liable for any loss or damage to goods packed by the owner. Coverage usually applies only to items professionally packed by the company. Customers should clarify coverage for self-packed goods and consider additional insurance if needed to protect their goods.
What insurance covers damages or losses in storage units?
Storage unit insurance often covers theft, fire, vandalism, water damage, and building collapse. Damage from floods or earthquakes may not be included. Check your policy.
If movers break goods they pack whose insurance covers that?
If movers break goods that they themselves packed, the moving company's insurance typically covers the damage within limits and based on the type of liability coverage you selected.
Do I need extra insurance for moving or will my home insurance and the moving company's insurance cover my goods?
Many home insurance policies provide some coverage for your belongings during a move, often limiting coverage to certain types of loss, such as fire or theft) and sometimes only for a limited time or portion of the move. Note that home insurance often does not cover damages caused by professional negligence during packing or transport, and coverage may be limited for items in transit or in storage.
The moving company typically provides basic liability insurance, which covers damage or loss to your belongings while under their care, but usually with low valuation limits unless you purchase additional replacement value protection.
Take the time to know how your goods are protected during a move.