Released-value insurance

Definition

Insurance an interstate mover may sell only on goods released at 60 cents a pound, and must issue as a policy.

Why It Matters

Valuation coverage is the mover's own liability, and this is a policy sold on top of it on the shipper's behalf. The federal rule lets a mover, an employee or an agent sell it only when the shipper has released the goods at no more than 60 cents a pound per article. The shipper must get a policy or other evidence at the time of sale, in plain English, stating what it covers. A mover that sells the coverage and never issues the paper is subject to full liability for any claim attributed to it, and its tariff has to price that case. So a premium line on the seller's books is a list of shipments that may be carrying full liability. Match premiums collected against policies issued, job by job, before trusting the claims ratio.