If you're running a moving company in California, navigating the insurance maze can feel overwhelming. Between state licensing requirements, cargo coverage mandates, and workers' compensation rules, there's a lot to keep straight. But here's the thing: getting your insurance right isn't just about compliance—it's about protecting your business from the kind of claims that can shut you down overnight.
California takes household goods transportation seriously. The state requires specific permits, minimum insurance coverage, and electronic filing with the California Public Utilities Commission. Whether you're hauling furniture across town or moving entire households up and down the coast, you need to know exactly what coverage you must carry—and what additional protection can save you from financial disaster.
California Licensing and Mandatory Insurance
Before you can legally move household goods in California, you need a Household Mover Permit—commonly called a Cal-T number—from the Bureau of Household Goods and Services. This isn't a rubber-stamp process. The state requires fingerprint-based background checks for all owners and proof that you're carrying adequate insurance coverage.
The minimum liability insurance you must carry breaks down two ways. You can either maintain split limits of $250,000 for bodily injury or death of one person, $500,000 for injury or death of multiple people, and $100,000 for property damage, or you can opt for a combined single limit of at least $600,000. Most moving companies find the combined single limit easier to manage and often more cost-effective.
Additionally, you must carry cargo insurance with minimum coverage of $20,000 per shipment. This protects your customers' belongings during transit. Your basic rate to customers includes protection at 60 cents per pound per article, but savvy movers offer additional coverage options like Actual Cash Value or Full Value protection to upsell customers who want comprehensive coverage for high-value items.
Workers' Compensation Requirements
If you have even one employee, California law requires you to carry workers' compensation insurance. This covers medical expenses and lost wages if a worker gets injured on the job—and in the moving business, injuries happen. Heavy lifting, stairs, tight corners, and long hours create plenty of opportunities for back injuries, falls, and other workplace accidents.
Here's what many moving company owners don't realize: California is changing its workers' comp requirements for contractors. Under recent legislation, by January 1, 2028, all licensed contractors will need workers' compensation insurance regardless of whether they have employees. The 2026 deadline was pushed back to 2028, giving businesses more time to comply. The only exemption applies to contractors organized as a joint venture with no employees who file a certificate of exemption.
If your moving company employs drivers, you'll also need to enroll in the DMV Employer Pull-Notice Program. This monitoring system alerts you to any driver's license suspensions, traffic violations, or other issues that could affect your insurance rates or legal liability.
General Liability and Commercial Auto Insurance
While California doesn't technically require general liability insurance for moving companies, you'd be foolish to skip it. Why? Because the buildings, property managers, and commercial clients you work with almost certainly require it. The most common requirement is $1 million in general liability coverage, though luxury residential buildings and commercial properties often demand $2 million or more.
General liability covers damage you cause to property you don't own—think scuffed walls, broken elevators, or damaged flooring in a client's building. It also covers bodily injury claims if someone gets hurt because of your operations. Without this coverage, a single incident could wipe out your business savings and leave you personally liable for damages.
Commercial auto insurance is mandatory if you operate moving trucks. California requires all commercial vehicles to carry liability coverage, and the minimums vary based on vehicle size and weight. For most moving trucks, you'll need significantly more coverage than personal auto liability limits. Many insurers recommend at least $1 million in commercial auto liability to adequately protect your business.
CPUC Filing and Compliance Requirements
The California Public Utilities Commission oversees all intrastate moves—meaning moves that both start and end within California. You must file information about your vehicle liability, cargo, and workers' compensation insurance policies electronically with the CPUC's License Section. This isn't a one-time filing. You need to keep your insurance information current and notify the CPUC of any policy changes, cancellations, or lapses.
The CPUC can suspend or revoke your permit if your insurance lapses or if you fail to maintain the minimum required coverage. They're serious about enforcement because inadequate insurance leaves consumers vulnerable when claims arise. Make sure your insurance agent knows they need to file certificates of insurance directly with the CPUC whenever you renew or change policies.
How to Get the Right Coverage for Your Moving Company
Start by working with an insurance agent who specializes in commercial transportation or moving companies. They understand the nuances of California requirements and can help you structure coverage that meets both state mandates and contractual obligations. Don't just buy the minimum—one major claim can blow through minimal coverage limits and leave you exposed.
Consider bundling your policies with a Business Owner's Policy (BOP), which typically combines general liability, commercial property coverage, and business interruption insurance at a lower premium than buying each separately. Also evaluate whether you need hired and non-owned auto coverage if employees or contractors ever use personal vehicles for company business.
Finally, review your coverage annually. As your business grows, your fleet expands, or you take on higher-value moves, your insurance needs will change. Keep your Cal-T number active, maintain continuous coverage, and never let a policy lapse. In California's competitive moving industry, your insurance isn't just protection—it's your license to operate.
