What are the Legal Liabilities of Moving Companies?

When moving companies deliver the goods they were contracted to in bad condition or lost some items under their care, the company is obligated by law to answer its legal liabilities to the person who hired their services. However, the company's accountability depends on the type of liability options the customer chose on the contract.

Legal Liabilities
of Moving Companies

There are two basic types of liabilities a mover is answerable for when the items shipped are lost or damaged. Based on the valuation coverage that the customer agreed on the contract, the moving company will be subject to settle the following forms of liabilities:

  • Full value liability - The value of any item that is broken, scratched, or missing will be replaced. The carrier may repair the article, provide an item of equal value, or negotiate the loss or damage with cash, equivalent to the value of the item.
  • Released value liability - With this type of liability, movers are obligated to pay the damaged or lost goods using the federal government's tariff levels of liability which is 60 cents per pound for each affected item.

If the customer opted to purchase a liability insurance offered by the moving company, the damages or loss of items will be covered by the insuring company.

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