Starting a moving company? Here's what nobody tells you upfront: insurance will likely be your second-biggest operating expense after labor. But skip it or cheap out on coverage, and one accident could shut down your business permanently. The good news is that understanding what you actually need doesn't have to be complicated. Let's break down the essential coverages, what they cost, and how to avoid overpaying while still protecting your business.
The Three Non-Negotiable Coverages
Every moving company needs three foundational insurance policies to operate legally and land commercial contracts. Think of these as the price of admission to the industry.
General liability insurance runs about $120 monthly and covers third-party bodily injury and property damage. Here's a real-world scenario: your crew is moving a client's grand piano down a stairwell. The dolly slips, the piano crashes through the landing banister, and takes out the neighbor's car parked below. General liability handles both the property damage to the car and the banister, plus any injuries. While it's technically not required by law, try getting a commercial moving contract without it. Most businesses require proof of $1-2 million in coverage before they'll even consider your bid.
Workers' compensation insurance is mandatory in almost every state if you have employees. At around $755 per month, it's expensive, but getting caught without it means massive fines and potential criminal charges. Moving is physically demanding work with high injury rates—strained backs, slip-and-falls, vehicle accidents. Workers' comp covers medical bills and lost wages when your employees get hurt on the job. It also protects you from lawsuits, since employees generally can't sue you for workplace injuries if you're covered.
Commercial auto insurance averages $876 monthly and covers your trucks, vans, and any vehicles used for business. Personal auto policies won't cover commercial use, and if you're in an accident while moving someone's household goods with just a personal policy, your insurer will deny the claim. Commercial auto covers vehicle damage, liability for accidents you cause, and medical payments. In every state except New Hampshire, this coverage is legally required for business-owned vehicles.
Cargo Insurance: Protecting Your Clients' Belongings
This is where moving companies often make a critical mistake. Basic cargo coverage—what's called released value protection—only pays $0.60 per pound per item. That $3,000 dining room table that weighs 80 pounds? You'd owe the customer exactly $48 if your crew damages it. States like Illinois require a minimum of $10,000 in cargo insurance, but most professional moving operations carry $100,000 or more.
Full value protection costs around 1% of the total value of goods you're moving. For a $60,000 household goods shipment, that's $600 in coverage costs. It's significantly more expensive, but it builds client trust and protects you from devastating out-of-pocket claims. When clients understand you're carrying real coverage, they're more likely to hire you over cheaper competitors.
Should You Bundle with a BOP?
A Business Owner's Policy bundles general liability and commercial property insurance into one package for around $183 monthly. For smaller moving operations—say, one or two trucks and a small warehouse—a BOP can save you money compared to buying policies separately. It covers your business property like office equipment, your warehouse or storage unit contents, and includes business interruption coverage if you have to shut down temporarily after a covered loss.
However, BOPs don't cover commercial auto, workers' comp, or cargo—you'll still need separate policies for those. And as your business grows beyond a certain size or revenue threshold, insurers may require you to unbundle and buy standalone policies anyway. Still, for new moving companies, a BOP plus commercial auto and workers' comp is often the most cost-effective starting point.
Additional Coverages to Consider
Beyond the essentials, several specialized coverages can protect you from specific risks in the moving industry. Professional liability insurance (also called errors and omissions) starts around $73 monthly and covers claims of negligence, like if you lose a client's inventory list and can't locate their boxes. If you store clients' goods for any length of time, you'll need warehouse legal liability or bailee's coverage. This protects items while they're in your custody but not actively being transported.
Cyber liability insurance is becoming increasingly important as moving companies digitize their operations. If you store customer data—credit cards, addresses, inventory lists—and experience a data breach, cyber coverage handles notification costs, credit monitoring for affected customers, and legal defense. Many small business owners assume they're too small to be targets, but hackers often go after smaller companies precisely because they have weaker security.
What Moving Company Insurance Actually Costs
Let's talk real numbers. A small moving company with 2-3 employees and a couple of trucks should budget around $1,200-$1,500 monthly for comprehensive coverage. That breaks down roughly to $876 for commercial auto, $120 for general liability, and $245-$300 for workers' comp. As you scale up—more trucks, more employees, higher revenue—your premiums increase proportionally. Some companies with large fleets pay $2,500 or more monthly.
Geographic location matters significantly. Moving companies in New York pay around $214 monthly for a BOP, while North Carolina movers pay just $157 for the same coverage. High-traffic urban areas with more accident risk and higher litigation rates mean higher premiums. Your claims history also impacts rates—one major claim can increase your premiums by 20-40% at renewal.
How to Get Started
Start by getting quotes from insurers that specialize in moving companies—they understand your risks better than general business insurers. Companies like The Hartford, Nationwide, and NEXT Insurance offer competitive rates for movers. Expect to provide details about your fleet (year, make, model, and value of each vehicle), number of employees, annual revenue, types of moves you handle (local vs. long-distance, residential vs. commercial), and your claims history if you've been in business before.
Don't just go with the cheapest quote. Read the exclusions carefully. Some policies exclude certain types of items (antiques, fine art, electronics) or limit coverage for specific scenarios. Make sure your cargo limits align with the types of moves you're taking on. If you're moving high-value homes, $10,000 in cargo coverage won't cut it. Finally, ask about certificate of insurance turnaround time—you'll need to provide these to commercial clients quickly, and some insurers are faster than others.
Insurance isn't the fun part of running a moving company, but it's absolutely foundational. The right coverage protects your business, your employees, and your clients—and it's what separates legitimate professional movers from fly-by-night operations. Build your insurance costs into your pricing from day one, and you'll never be caught scrambling when something goes wrong.
