Underwriter’s Corner: Named Insureds Inconsistency

With 30 years of insuring Moving & Storage risks, we do see various trends that may appear minor, but actually have large implications down the road. One recent trend that we’d like to share with our insured clients and affiliated brokers is the matching of the ‘named insureds’ listed on the policy, compared to the ‘named insureds’ listed on the Bills of Lading (BOL) and Warehouse/Storage receipts. This also includes DBA names. While a seemingly minor error made when completing an application, it can cause a major issue when a claim arises, including coverage denials for insureds. 

With Moving & Storage, along with general Trucking operations, it’s necessary that the names listed on the BOL’s and Warehouse/Storage receipts match the full name listed on the policies. Consistency with ‘named insureds’ is critical, and ensures that adjusters are able to conduct a proper and timely claims review and settlement.  

Here are a few examples:

Dissolved Entity 

An insured had two separate entities and, at one point, presumably two separate BOLs. One of the entities was dissolved several years prior, but they continued to use the dissolved entity’s BOL. The dissolved entity was never listed on our policy as a ‘named insured’.

Merger 

One entity acquired another entity and eventually merged the two under one name. The policy was endorsed to show only the one remaining entity. However, both BOLs were used long past the merger date.

DBA-BOL 

An insured’s company operates under a DBA, such as XYZ Moving & Storage DBA XYZ Moving. The DBA is not listed on the policy, nor does the BOL show the legal entity’s name. So again, this is not a match. Either the BOL needs to be updated, or the ‘named insured’, including any DBA’s, need to be added to the policy.   

‘Named Insured’ Missing

Sometimes a ‘named insured’, over time, was left off the applications or policy after a string of renewals.  

What Can Brokers Do to Help with This?

While we only ask for one example of the BOL and Warehouse/Storage Receipt to reduce the amount of paperwork for you and our clients, we strongly encourage that brokers ask for copies of every BOL and Warehouse/Storage Receipt used, to ensure accuracy on the policy for when a claim is being adjusted. 

Additionally, I suspect that if a BOL is used on an entity and a DOT number is also dissolved, that could create problems with their filings and at inspection stations.  

Now for the disclaimer: This article is written in a very broad fashion and will not be used in any claims settlement. The actual policy and circumstances surrounding a claim take precedence. There may be some exclusions and limitations not addressed in this brief article. 

Terri Moran

Insurance industry veteran Terri Moran leads the underwriting and operational strategies for the MOVER’S CHOICE program. Throughout her career, Terri has held roles in leadership, underwriting and marketing with national insurers. A staunch industry advocate, she has served as a member of the WSIA Internship Committee, working to attract young professionals to career opportunities.

In her spare time, in addition to enjoying her family, she is a Member and past Chair of the Board of Directors for the Surplus Lines Association of California.