Q & A with Brandon Laam
VP of MOVER’S CHOICE Insurance Program For Moving and Storage Operations
Are you seeing any trends in the types of operations you’re insuring?
Absolutely. Over the past few years, we’ve seen many movers diversify their operations to include services, such as junk hauling, temporary storage pods, high valued art, specialized packing and unpacking services, and even globalization. Have movers used these methods in the past? Sure, but these services are now becoming more prevalent throughout the industry.
Are these diverse risks difficult to insure?
Not difficult, but tricky from an underwriting perspective. Historical loss data is essential in assessing any exposure and we’ve accrued only a limited amount of loss data associated with these types of exposures. We’re continually exploring creative methods aimed at tailoring coverages to meet each exposure’s unique risk factor. For example, with junk hauling services, aside from obvious public liability concerns, there are potential environmental liabilities related to waste disposal including damage to clients’ property during removal, liabilities surrounding improper waste disposal and handling hazardous materials. Diversification creates a dynamic landscape that requires insurers to stay agile and innovative, ensuring they can meet the changing needs of the industry while providing protection and risk management.
What’s behind this diversification trend?
The pandemic undeniably signaled the need for movers to diversify. It added a lot of pressure on movers to offer innovative services to meet customer demands. Amidst the pandemic, a bright spot emerged with the addition of contactless services — video surveys, virtual meetings, touchless payment options, and improved online self-booking. When the post-pandemic moving boom ended and home sales stalled, movers continued to innovate and differentiate themselves from their competition by expanding their services to attract new customers. When done properly, this effectively reduces their reliance on traditional residential moves tied to home sales.
What other avenues are your customers exploring to enhance their operations?
We have an increasing number of customers integrating telematics and AI. As a result, we’re seeing significant reductions in their loss profiles. Technology in vehicles is such a smart investment. Among many other benefits, it reduces the chances for accidents, business interruption and creates a culture of safety by improving driver behavior in real time. These benefits make the risk more appealing from an underwriting perspective and are likely to influence insurance premiums to be more cost-effective over time. It’s exciting to see movers embracing advanced technology to improve their resiliency with market fluctuations, their operational efficiency and profitability. It’s a win-win for the entire industry.
Written By: Brandon Laam
Brandon has been a transportation insurance specialist for over 10 years, and is constantly striving to create enhanced services for brokers and insureds.
Brandon spearheads the MOVER’S CHOICE philanthropy efforts with Move for Hunger, a national organization working with the moving industry to reduce food waste and fight hunger. Outside of the office, Brandon likes to fish, hike, kayak, garden and read.