Why a Moving Company Needs an Arbitration Program?

What Is An Arbitration Program?

In simple words, an arbitration program is a form of dispute resolution in which an independent third party provides a private judicial determination for the dispute case. An arbitration proceeding may include a single arbitrator or a tribunal. When it comes to a tribunal, there can be any number of arbitrators in it. However, the legal system endorses that the arbitrator must be in odd numbers, so a tie can be avoided. The conflicted parties take their dispute to the arbitrators and give them the power to decide the dispute for them. With arbitration, one can avoid court action, but its results are binding and final.

Arbitration Program for Movers

If you are planning to start a moving company or already own one, then you must keep in mind that the Abitration Program is compulsory for movers. According to USDOT, a moving company must get an arbitration and must hang the certificate openly in their offices, so their clients and other stakeholders will know that they have arbitration. The fee you will have to pay for the arbitration is quite affordable, and you can get it from an official provider.

What is The Process for Arbitration for Movers?

The process of arbitration is not confusing or complicated as it has become a part of the requirements set by USDOT. The moving company has to add in the contract of how the goods and furniture will be transported and what damage it may sustain during the moving process. The moving company sets the standards, and if the client thinks that the service they received was not up to the mark, then they can file a dispute via an arbitration program. This mostly happens when the client’s belongings have been damaged during the moving out process.

The case will be presented in front of the arbitrator or the tribunal, and they will decide on the matter after listening to both sides of the story. Whatever is decided by the arbitrators will be final and cannot be challenged again. Also, the challenge must be filed as early as possible because the processing can take weeks sometimes.

What Are the Risks of Not Getting An Arbitration?

As a mover, if you do not have an arbitration program, then you are always at risk. First of all, you need arbitration because you are legally required to have one. If you are running your moving company without an arbitration program then and get caught, then you will have to pay a hefty fine or worse. Apart from that, arbitration makes sure that you do not have to get into a conflict with the customer. If the customer has claimed that the services were not up to the mark, then the case will simply go towards the arbitrator for resolution. Also, this means you would not have to go to court, and the matter will be resolved without making things more complicated or expensive.

Provide Quality Services to Your Customers

Having an arbitration program doesn’t just mean that you are protecting your company, but it also means that you are protecting your customer as well. The point of arbitration is not to just to keep the moving company out of the court but to offer justice as well. If the complaint your customer has raised is a valid one, then you do not want to turn them down because of a lack of evidence or misunderstanding. Having an arbitration program will allow you to provide them a fair compensation so they will be satisfied with your service in the end. Also, telling your new customers that you have an arbitration for such scenarios will only strengthen their trust in your company.

Importance of Compliance

If a mover refuses to get an arbitration just to save a tiny fee, then they are making a huge mistake. Moving season is upon us, and it is the time when the business will be at the peak. Entrepreneurs interested in investing in this market should be aware of the laws and must comply accordingly. If you are doing everything by the book, then you will feel like you are driving on a smooth road. However, if you are ignoring the laws, then it is going to be a bumpy ride, and you will be showered with more complications.

Reputation

It doesn’t matter what kind of business you are running. If you do not have a good reputation, then you would not be able to take it to the heights you have always imagined. A good moving company does everything by the book and makes sure that their customer gets the best service possible. Just adding the arbitration clause in your contract will give your customers a great sense of relief, and they will praise your services once the project is completed.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes