What the Recent California Supreme Court Ruling Means for Our Industry

While some cases within the United States judicial system make headlines across the country, others get less coverage. Although the recent ruling in the Supreme Court of California on A1 Vs. Heckart didn’t make the front page of the major papers, it will have positive implications for On The Move, our customers, and the end consumer.

The Incident 

In June of 2012, Samuel Heckart rented a storage unit at one of A-1 Self Storage Inc.’s facilities. As part of his rental, Heckart agreed to pay $55 per month in rent and signed a contract, which included a document called “A-1 Self Storage Rental Agreement.”

Additionally, the storage company offered Heckart the opportunity to purchase liability coverage for the property that he stored in the unit for $10 more each month. The signed agreement said that if the tenant chose not to opt in to this coverage, he would have to provide proof of insurance within 30 days, and that failing to do so would automatically enroll him in the liability program. When Heckart did not provide proof of insurance, the storage company enrolled him in the plan as per the agreement.

The Lawsuit

In April of 2013, Heckart sued the storage company. His claim stated that the program is technically insurance, which A-1 Self Storage is not licensed to sell. Without getting too much in to the legal jargon, the case rested on whether or not protection policies like the one A-1 offered are insurance like you buy on your car or a protection policy like those you might get on a new television.

Over the next five years, courts throughout the California system heard arguments from both sides. Eventually, the case found its way into the Supreme Court of California. At the end of April 2018, the court issued its decision.

The Decision The state’s Supreme Court upheld the lower court’s decision that the protection plan did not qualify as insurance under California law. The court made a point to say that the agreement was between the storage company itself and renters. Since the policy is a service given to customers and not an indemnity, it is a protection plan.

The Consequences 

This is excellent news for storage unit owners and their customers. Without having to become licensed insurance brokers, storage unit owners can continue to offer protection at affordable rates to each of their customers.

At On The Move, we are thrilled to continue to offer a great protection plan for our customers. This ruling ensures that we can provide robust liability coverage. In fact, our customers can receive up to $5 million in coverage, and includes comprehensive and collision.

As a one-stop shop for all your truck needs, we look forward to offering the same excellent service and protection that our customers have come to expect.

Read more at onthemovetrucks.com

Follow us on social media for the latest updates in B2B!



embracing change
Moving Forward with Fans First
June 20, 2024

In a compelling conversation on fostering innovation within corporate culture, Jesse Cole of the Savannah Bananas highlights the importance of embracing change as a tool for continuous improvement. Cole underscores that change should not be seen as change for its own sake but as an essential part of striving to better serve customers and…

Read More
work-life balance
Achieving Work-Life Balance and Emotional Sobriety with Matt Seefeld
June 20, 2024

This episode of the Growthwell podcast, hosted by Josh Byrd, focuses on achieving a meaningful work-life balance. The discussion examines trends and personal strategies for balancing professional growth and individual well-being. This episode is particularly relevant in post-COVID work dynamics and the increasing importance of mental health. This episode’s guest is Matt Seefeld, EVP…

Read More
Addressing the Complexities and Opportunities of the Inflation Reduction Act (IRA)
June 19, 2024

As the energy sector navigates the first year of the Inflation Reduction Act (IRA), stakeholders are grappling with evolving guidance and incentives. This pivotal legislation aims to accelerate the energy transition, but with its intricate provisions and requirements, many questions remain. Understanding the IRA’s impact is crucial for developers, investors, and policy-makers striving to…

Read More
Inflation Reduction Act Can Impact Company Investments
June 19, 2024

Recent months have shown that the Inflation Reduction Act (IRA) is a hot topic in the energy industry, sparking extensive discussions about its implications and opportunities. As businesses and organizations seek to join the renewable energy movement, understanding the nuances of the IRA is crucial.  A recent study highlighted that renewable energy investments are…

Read More