Key Takeaways
- Cargo insurance protects customer belongings (required for interstate moves)
- General liability covers property damage and injuries
- Workers' comp is required in most states with employees
- Budget $5,000-$15,000 annually for comprehensive coverage
Insurance isn't optional in the moving business—it's essential. You're handling customers' most valuable possessions and operating heavy vehicles. The right insurance protects your business, your employees, and your customers. Here's what you need to know.
Types of Moving Company Insurance
1. General Liability Insurance
This is your foundation. General liability covers:
- Property damage to customer's home (scratched floors, damaged walls)
- Bodily injury (if someone trips over equipment)
- Legal defense costs if you're sued
Recommended coverage: $1 million per occurrence, $2 million aggregate
Typical cost: $500-$2,000/year
2. Cargo Insurance
Cargo insurance covers customer belongings while in your possession. This is critical because general liability doesn't cover items you're hired to transport.
- Covers damaged, lost, or stolen items during the move
- Required for interstate movers (FMCSA regulation)
- Coverage per shipment and aggregate limits apply
Recommended coverage: $50,000-$100,000 per shipment
Typical cost: $1,000-$5,000/year
3. Commercial Auto Insurance
Your personal auto insurance doesn't cover vehicles used for business. Commercial auto covers:
- Vehicle damage from accidents
- Liability for accidents your drivers cause
- Medical payments for injured parties
- Uninsured/underinsured motorist coverage
Recommended coverage: $1 million liability per truck
Typical cost: $3,000-$8,000/year per truck
4. Workers' Compensation
Moving is physically demanding work. Workers' comp is required in most states if you have employees, covering:
- Medical expenses for work-related injuries
- Lost wages during recovery
- Disability benefits for permanent injuries
- Death benefits for fatal workplace accidents
Cost basis: Based on payroll and job classification
Typical cost: $0.50-$2.00 per $100 of payroll
5. Umbrella/Excess Liability
Umbrella policies provide additional coverage above your primary policies. Recommended for larger operations or high-value moves.
Typical coverage: $1-5 million above primary limits
Typical cost: $500-$2,000/year
FMCSA Requirements for Interstate Movers
If you do interstate moves (across state lines), you must comply with FMCSA regulations:
- • USDOT Number: Required for all interstate carriers
- • MC Number: Motor Carrier operating authority
- • BMC-91 Filing: Proof of cargo insurance ($10,000 minimum)
- • BMC-84 Filing: Proof of liability insurance
- • BMC-85 Filing: $75,000 surety bond
Cost Breakdown
| Insurance Type | Annual Cost Range |
|---|---|
| General Liability | $500 - $2,000 |
| Cargo Insurance | $1,000 - $5,000 |
| Commercial Auto (per truck) | $3,000 - $8,000 |
| Workers' Comp | Varies by payroll |
| Umbrella Policy | $500 - $2,000 |
| Total (Small Company) | $5,000 - $15,000+ |
How to Reduce Insurance Costs
- Maintain a clean claims history: Fewer claims = lower premiums
- Train your crew: Documented training programs can reduce rates
- Install GPS tracking: Some insurers offer discounts
- Higher deductibles: Accept more risk for lower premiums
- Shop multiple insurers: Get quotes from moving industry specialists
- Bundle policies: Same carrier for all coverage often means discounts
Pro Tip: Work with Moving Industry Specialists
Generic insurance agents often don't understand moving company risks. Work with brokers who specialize in transportation or moving industry coverage. They know the right policies and can often find better rates.
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