If you run a moving company, you already know that insurance isn't optional. Between expensive equipment, customer belongings worth thousands of dollars, and the constant risk of accidents, you need solid coverage. But here's what catches most moving company owners off guard: you might be overpaying by purchasing separate policies when a Business Owners Policy could bundle everything you need at a lower cost.
A BOP isn't right for every moving company, and it won't cover everything you need. But for small to mid-sized operations with warehouses, storage facilities, or office spaces, it's often the smartest way to protect your business without breaking the bank. Let's break down when a BOP makes sense, what you'll get, and what crucial gaps you'll still need to fill.
What Exactly Is a Business Owners Policy?
Think of a Business Owners Policy as a bundle deal from your insurance company. Instead of buying general liability insurance and commercial property insurance separately, you get both wrapped into one policy. The real win? You typically save 10-15% compared to purchasing those coverages individually. For a moving company paying $183 per month on average for BOP coverage, that's real money back in your pocket.
The BOP includes three core coverages. First, general liability insurance protects you when someone gets hurt or their property gets damaged. If a customer trips over your dolly and breaks their ankle, or if your crew accidentally damages a client's hardwood floors during a move, general liability kicks in. Standard coverage is typically $1 million per occurrence with a $2 million aggregate limit.
Second, commercial property insurance covers your physical assets. This includes your warehouse, office equipment, furniture pads, dollies, hand trucks, and all the gear that keeps your operation running. If a fire destroys your storage facility or someone breaks in and steals your equipment, commercial property coverage handles the replacement costs. Most policies start with at least $5,000 in business property coverage, though you can increase this based on your actual assets.
Third, business interruption coverage is the hidden gem that most business owners don't appreciate until they need it. Let's say a storm damages your warehouse so badly you can't operate for two months. Business interruption coverage replaces the income you would have earned during that downtime. It covers your ongoing expenses like rent, employee salaries, and loan payments, even when you can't take on new moving jobs.
When Does a BOP Make Sense for Your Moving Company?
Insurance companies designed BOPs for small to mid-sized businesses with relatively straightforward operations. For moving companies, that means you'll typically need to meet certain criteria. Most insurers require fewer than 100 employees and annual revenue under $5 million. Some carriers set the revenue limit lower, around $1 million, so it varies by company.
Here's the critical part: a BOP makes the most sense if you have a physical business location. Do you own or rent a warehouse where you store equipment and stage moves? Do you have an office where customers come to get quotes and your staff handles scheduling? Do you maintain a storage facility for customers' belongings? If you answered yes to any of these, a BOP is worth considering because the commercial property coverage becomes immediately valuable.
However, if your moving business is primarily mobile, working out of trucks without a fixed location, the commercial property component of a BOP might not justify the cost. In that case, standalone general liability insurance might be more cost-effective since you don't have significant property to protect.
Location matters too. Moving company BOP costs vary dramatically by state. In North Carolina, you might pay around $157 per month, while in New York, that same coverage could cost $214 monthly. The difference reflects varying labor costs, litigation environments, and risk factors in different markets.
What a BOP Won't Cover (And Why That Matters)
This is where moving company owners get tripped up. A BOP provides essential foundation coverage, but it's nowhere near everything you need to legally operate a moving business. You'll need to purchase several additional policies separately, and these aren't optional nice-to-haves, they're legal requirements in most cases.
Commercial auto insurance is mandatory if you own moving trucks or vans. Most states require it for any vehicle owned by a business. Your BOP won't help if one of your drivers causes an accident while hauling someone's furniture across town. You need separate commercial auto coverage for your fleet.
Workers' compensation insurance is legally required in almost every state once you have employees. Moving is physically demanding work with a high injury rate. If a crew member hurts their back lifting a couch or falls off a loading ramp, workers' comp covers their medical bills and lost wages. For moving companies, workers' comp runs anywhere from $225 per month in lower-cost states like North Carolina to $302 monthly in expensive states like New York.
Cargo insurance is crucial because it covers your customers' belongings while they're in your possession. Your BOP's general liability might cover accidental damage you cause to a customer's property, but cargo insurance specifically protects the items you're transporting. If a truck accident destroys a customer's entire household worth of furniture, cargo insurance handles the reimbursement.
For interstate moving companies, there's an extra layer of complexity. You must obtain a USDOT number and comply with Federal Motor Carrier Safety Administration (FMCSA) insurance regulations for household goods movers. These federal requirements go beyond what a standard BOP provides, so make sure your insurance package meets FMCSA standards if you cross state lines.
How to Get Started with BOP Coverage
Before you shop for a BOP, take inventory of what you actually need to protect. Calculate the replacement value of all your equipment, furniture pads, dollies, hand trucks, computers, and office furniture. Walk through your warehouse or storage facility and make a realistic assessment. The standard $5,000 minimum property coverage won't cut it if you have $50,000 worth of equipment.
Next, gather your business details. Insurance companies will ask about your annual revenue, number of employees, types of moves you handle (residential vs. commercial), your claims history, and your business location. Be honest about everything. Understating your revenue or number of employees to qualify for a BOP can come back to haunt you when you file a claim.
Shop around with multiple carriers. Companies like The Hartford offer competitive rates for moving businesses, with good marks for balancing affordability and reliability. Some insurers specialize in transportation and logistics businesses and understand your industry's unique risks better than general commercial insurers. Get at least three quotes and compare not just the price, but the coverage limits, deductibles, and exclusions.
Finally, bundle your additional coverages. Many insurers will give you better rates if you purchase your BOP, commercial auto, workers' comp, and cargo insurance through them. The administrative convenience alone is worth it. You'll have one renewal date, one agent to contact, and potentially one combined premium payment instead of juggling multiple policies from different companies.
A Business Owners Policy isn't a complete insurance solution for your moving company, but it's a smart, cost-effective foundation. When combined with commercial auto, workers' comp, and cargo coverage, you'll have the protection you need to operate legally and sleep better at night. Take the time to assess your business size, your physical assets, and your budget. Then find an insurer who understands the moving industry and can put together a package that actually fits your operation. Your business is worth protecting properly.
