Owner Operators have been used in the moving and storage industry for many years.  However, it has been primarily for interstate work.  In an effort to control expenses, and in some instances avoid costs all together, companies are now using independent contractors for local and intrastate work.    At first it could look like a good move, but you could be facing unexpected liabilities.

One of the benefits of being the “employer” is that workers compensation is the sole remedy for injuries.  Employees can only collect through the workers compensation system and benefits are limited by statute.  When you use contractors, you are not the employer, and are not immune.   It is important that you make sure that the contractors have the proper coverage in place.   The main reason is that, in some states, you are statutorily responsible for injuries to the employees of your contractors if the contractor does not have workers compensation coverage in place. 

But that alone does not eliminate the problem.  You can still be sued for negligence.  Let me give you an example;  A contractor is unloading into your warehouse.  He or his helper is injured.  Perhaps they fell off the dock or tripped over the forklift.  Even though they have coverage for their injuries, they can now sue you.  The burden of proof is greater than under workers compensation because they must prove that you were negligent.  But the payout to them is not limited by statute and they can add pain and suffering.

If you are using independent contractors, take the following steps; 1) make sure they are truly independent.  Calling a employee a “contractor “ does not make it so.  You could be in violation of law and subject to additional costs if they don’t meet the definition of a contractor.   2) make sure they have the proper coverage in place.  You should never use uninsured contractors.   3) If you allow contractors to work at your physical location, you could be subjecting yourself to further, unnecessary liability.  4) Think it through and discuss it with your Risk Manager. 

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Florida’s No-Fault Law is changing. The legislature either needed to take action in 2012, or do away with the law entirely. PIP was originally put in place to limit personal injury suits in auto accidents by having the injured party’s own insurance policy cover the first $10,000.

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The Occupational Safety and Health Administration have increased inspections of companies around the south.   This division of the U.S. Department of Labor is charged with insuring worker safety.  In the past, people thought of OSHA as the organization that investigated worksites after an accident or death.  The reality is that they issue more fines inspecting companies that think they are in compliance.  Now that includes Moving and Storage companies.

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Although Florida currently has no ban on distracted driving, OSHA issued the following letter on October 4, 2010.  The most important line I take from this is “It is your responsibility and legal obligation to create and maintain a safe and healthful workplace, and that would include having a clear, unequivocal and enforced policy against the hazard of texting while driving.”  Employers should prepare by having a written and enforced policy on texting and use of cell phones while driving.   If you do not have such policy, let us know.  We can help.

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There are several things that a Moving & Storage company can do to lower workers compensation insurance costs.   Some of the items have an upfront cost to them, but could have large savings down the road.  A single claim will affect your experience modification for three years.

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Even though the Florida law regulating the moving and storage industry has been in place for several years, companies are still using contracts that are illegal.  The problem stems from an interpretation of the law by the Division of Consumer Services.  They determined that since the law states that movers cannot limit their liability to less than 60 cents per pound, the mover could not put exclusionary language in the contract.  They consider the following as examples of exclusionary; Company is not responsible for jewelry.  Company is not responsible for items packed by owners.

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With the cost of metals increasing and economic conditions deteriorating both personal and commercial air conditioners are at risk of being stolen.  This rang true when I got two calls on a Monday morning that six air conditioners had been stolen.   These losses are no longer rare.  I heard stories of businesses being hit three or four times.  Units being stolen of the roofs of building and contractors taking loses before homeowners could move into the homes.

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