Are Your Moving Companies Employees Contracted Labor? Why Due Diligence Matters.

Oct 6, 2023 | Moving & Storage Blog

In the bustling world of the moving industry, hiring a professional moving company to help with your relocation is a smart choice. However, have you ever considered whether the employees who’ll be handling your precious belongings are actually full-time employees or contracted labor? This distinction holds significant implications for the quality of service you can expect, as well as your own peace of mind during the moving process.

Let’s delve into why doing your due diligence when hiring a moving company is paramount, and why it’s better to opt for a company that carries workers’ compensation for its employees rather than relying on contracted labor.

The Risks of Contracted Labor

Contracted laborers, also known as independent contractors, are individuals who work for a company but aren’t officially considered employees. While hiring contracted labor can sometimes be cost-effective for businesses, it comes with a host of potential risks, especially in the moving industry.

  1. Limited Control: Companies have limited control over contracted labor, which can lead to inconsistencies in service quality and professionalism. With your valuable belongings at stake, it’s crucial to ensure that everyone involved in the move is on the same page.
  2. Lack of Accountability: Contracted laborers might not feel the same level of accountability toward the company or the customers as full-time employees. This can result in a lack of commitment to providing the best service.
  3. Insurance Gaps: One of the most significant concerns when dealing with contracted labor is the potential for insurance gaps. If a contracted worker gets injured during your move and the company doesn’t provide workers’ compensation, you could be held liable for their medical expenses.

Why Workers’ Compensation Matters

Opting for a moving company that hires full-time employees and provides workers’ compensation coverage offers several benefits:

  1. Safety: Workers’ compensation ensures that employees are protected if they get injured on the job. This not only safeguards their well-being but also minimizes the risk of legal complications for you as the customer.
  2. Professionalism: Full-time employees are generally more invested in their work and committed to delivering the best possible service. This translates to a smoother and more efficient moving experience.
  3. Peace of Mind: Knowing that a moving company carries workers’ compensation coverage for its employees can significantly reduce the stress and worry associated with your move. You won’t have to be concerned about potential legal or financial issues resulting from injuries on the job.

How to Verify a Moving Company’s Employee Status

Before hiring a moving company, it’s crucial to perform due diligence to ensure you’re choosing the right professionals for the job:

  1. Ask Directly: Inquire about the company’s hiring practices and whether they have full-time employees or rely on contracted labor. Don’t hesitate to ask about their workers’ compensation coverage.
  2. Check Reviews: Look for online reviews and testimonials from previous customers. Reviews can often shed light on the professionalism and reliability of a moving company.
  3. Contact Industry Associations: Reach out to local or national moving industry associations for recommendations or information about reputable companies.
  4. Request Documentation: Ask for proof of workers’ compensation coverage and any other relevant insurance policies before finalizing your decision.

In conclusion, when you’re planning a move, it’s crucial to remember that not all moving companies are created equal. Opting for a moving company with full-time employees and workers’ compensation coverage for its staff is a wise choice. It ensures a safer, more professional, and less stressful moving experience. By conducting due diligence and asking the right questions, you can select a moving company that prioritizes the well-being of its employees and the satisfaction of its customers.

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