If you run a moving company, you already know that every job comes with risks. Your crew carries heavy furniture up narrow staircases, navigates tight doorways with bulky sofas, and wheels dollies across hardwood floors. One slip, one scratch, one moment of bad luck—and you could be facing a lawsuit that threatens everything you've built.
That's where general liability insurance comes in. It's not just another business expense—it's your financial safety net when things go wrong. More than that, it's often a requirement before you can even step foot in a building. Let's break down exactly what this coverage does, why you need it, and how to make sure you're adequately protected.
What General Liability Insurance Actually Covers
General liability insurance protects your moving company from third-party claims—meaning claims from people who aren't your employees. The policy covers three main areas: bodily injury, property damage, and personal and advertising injury.
Bodily injury coverage kicks in when someone gets hurt because of your business operations. Picture this: a customer trips over your furniture dolly in their driveway and breaks their wrist. Or a neighbor in the hallway slips on packing materials your crew left out and injures their back. Your general liability policy covers their medical bills, rehabilitation costs, and legal fees if they decide to sue. These claims can easily run into the tens of thousands of dollars—or more if the injury is severe.
Property damage coverage handles situations where you accidentally damage someone else's property during a move. Scratched hardwood floors, dented walls, broken banisters, damaged elevators—these are everyday risks in the moving business. If your crew scrapes the lobby wall while maneuvering a couch or cracks a marble floor with a heavy appliance, this coverage pays for repairs and any legal costs if the property owner sues.
Personal and advertising injury coverage is the piece most moving company owners don't think about until they need it. This covers claims of libel, slander, copyright infringement, or false advertising. If a competitor claims you stole their marketing materials or a former customer says you defamed them in a response to an online review, this coverage handles your defense costs.
Here's the critical thing to understand: standard general liability policies do not cover the customer's belongings while they're in your care. That's called the "care, custody, and control" exclusion, and it's industry-standard. If you drop a client's antique dresser and destroy it, your general liability policy won't pay for it. You'll need to add bailee coverage as a rider to your policy to fill this gap. This is absolutely essential for moving companies—without it, you're exposed to massive financial risk every time you load a truck.
Understanding Coverage Limits: Per Occurrence vs. Aggregate
General liability policies have two key limits you need to understand: per occurrence and aggregate. The standard coverage in the moving industry is $1 million per occurrence and $2 million aggregate, and about 91% of small businesses choose this structure.
The per-occurrence limit is the maximum your insurance company will pay for a single incident. If someone sues you for $800,000 after a serious injury on a job site, your $1 million per-occurrence limit covers it. But if that same claim reaches $1.5 million, you're personally responsible for the $500,000 difference. This is why adequate limits matter.
The aggregate limit is the total amount your insurer will pay for all covered claims during your policy period, which is typically one year. Think of it as your policy's annual budget. Once you hit that $2 million aggregate limit—whether from one massive claim or several smaller ones—your coverage is exhausted until the policy renews. You'll be paying out of pocket for any additional claims.
Most policies set the aggregate limit at double the occurrence limit, which is why you see the standard $1M/$2M structure. If your moving company does high-volume work or operates in upscale areas where property values are higher, you might want to increase your limits to $2 million per occurrence and $4 million aggregate. You can also purchase a commercial umbrella policy to add an extra layer of coverage—some moving companies carry umbrella policies of $5 million or more, especially when working with high-end clients or in major metropolitan areas.
Why You Actually Need a Certificate of Insurance
Here's something that catches new moving company owners off guard: you can't just have general liability insurance—you need to prove you have it. That proof comes in the form of a Certificate of Insurance, or COI.
A COI is an official document from your insurance company that shows what coverage you carry, your policy limits, and your policy period. Apartment buildings, condo associations, office buildings, and property management companies routinely require moving companies to provide a current COI before they'll allow your crew on the premises. They want to know that if your movers damage the building or injure someone, there's insurance money to cover it.
This isn't negotiable. Without a COI, you won't get past the front desk. Buildings in major cities like New York are particularly strict—some require not just general liability coverage but also umbrella policies with limits up to $5 million. Your COI typically needs to show both your general liability coverage and your commercial auto liability coverage, with many buildings requiring a minimum of $750,000 in auto coverage.
Getting a COI is straightforward—your insurance agent can generate one in minutes and email it to you or directly to the building manager. Make sure you request COIs well in advance of your move date, and keep digital copies readily accessible. Some building managers want to be listed as "additional insured" on your policy, which your agent can arrange. This gives them direct access to your insurance if something goes wrong.
What General Liability Insurance Costs
The average moving company pays between $108 and $145 per month for general liability insurance, with the national average around $120 per month or $1,440 annually. That's for the standard $1 million per occurrence and $2 million aggregate coverage.
Your actual premium depends on several factors. Your location matters—moving companies in states with higher litigation rates or cost of living pay more. Your annual revenue affects pricing because higher revenue typically means more jobs and more exposure to claims. Your claims history plays a major role; if you've had multiple claims in recent years, expect higher premiums. The size of your crew, the value of goods you typically move, and whether you do residential or commercial moves all factor into your rate.
Many moving companies pay the premium monthly, which makes budgeting easier, though some insurers offer a small discount for paying annually upfront. The typical deductible is around $625, meaning you'll pay the first $625 of any claim out of pocket before insurance kicks in.
Adding bailee coverage to protect customers' belongings increases your premium, but it's a necessary expense. Commercial auto liability insurance is separate and typically costs more than general liability. Workers' compensation is another essential policy that's priced separately based on your payroll.
How to Get the Right Coverage for Your Moving Company
Start by working with an insurance agent who specializes in moving companies or commercial trucking. They'll understand the specific risks you face and can structure a policy that actually protects you. Generic small business policies often miss critical coverages that movers need.
Make sure your policy includes bailee coverage—this cannot be overstated. Without it, you're personally liable for every item you transport. Ask about coverage limits for high-value items; some policies cap coverage per item, which could leave you exposed if you're moving expensive art, antiques, or electronics.
Review your coverage limits honestly based on your actual exposure. If you regularly work in luxury condos or handle high-end corporate moves, the standard $1M/$2M might not be enough. Consider an umbrella policy to boost your limits affordably. If you operate in major metropolitan areas or frequently deal with high-rise buildings, ask your agent what additional coverage or higher limits are commonly required.
Get quotes from multiple insurers. Rates vary significantly, and you might find the same coverage for hundreds of dollars less with a different company. But don't choose based solely on price—make sure the insurer has a solid reputation for paying claims promptly and fairly. A cheap policy that fights every claim isn't a bargain.
General liability insurance isn't optional for moving companies—it's the foundation of your risk management strategy. It protects your business from financial devastation when accidents happen, and it opens doors to clients and buildings that won't work with uninsured movers. Invest in adequate coverage, keep your COIs current, and make sure you understand exactly what your policy covers. Your business depends on it.
