Starting or running a moving company means juggling a lot—trucks, crews, schedules, and customers who trust you with their most valuable possessions. But here's what keeps many moving business owners up at night: insurance. Not having the right coverage can sink your business faster than a bad Yelp review. One accident, one injured worker, or one damaged heirloom could cost you everything you've built.
The good news? Getting your insurance right isn't as complicated as it seems. This checklist breaks down exactly what coverage you need, what's optional but smart to have, and when to review everything to make sure you're protected as your business grows.
Essential Coverage: What You Absolutely Must Have
Let's start with the non-negotiables. These are the policies required by law or that you simply can't operate without. Skip any of these, and you're either breaking the law or taking a massive financial risk.
Workers' compensation insurance is mandatory in almost every state if you have employees. This covers medical bills and lost wages when your crew members get hurt on the job—and let's be honest, moving heavy furniture up narrow staircases means injuries happen. For moving companies, workers' comp averages about $755 per month or $9,058 annually. That might seem steep, but it's nothing compared to paying an injured employee's medical bills out of pocket.
Commercial auto insurance is your next must-have. Your personal car insurance won't cover business vehicles, and the FMCSA requires cargo liability between $750,000 and $5 million depending on what you're hauling. Interstate household goods movers need to file Form BMC-34 or BMC-83 with the federal government. The average cost? Around $876 per month or $10,512 annually. Yes, it's your biggest insurance expense, but one at-fault accident without coverage could bankrupt your business.
General liability insurance protects you when someone who isn't your employee gets hurt or their property gets damaged. A customer trips over your dolly and breaks their ankle? Your movers accidentally gouge a doorframe? General liability has you covered. Moving companies typically pay around $120 per month or $1,440 annually for this coverage. It's relatively affordable and absolutely essential.
Cargo insurance covers your customer's belongings while they're in your care. While it's not always federally mandated, most shippers and brokers won't work with you without it, and many states require specific minimum amounts. For example, North Carolina requires at least $50,000 in cargo coverage. This is separate from the basic liability coverage movers must offer customers—Released Value (60 cents per pound per item) and Full Value Protection. Cargo insurance protects your business when things go wrong during the move.
Optional But Smart: Coverage That Protects Your Bottom Line
Now for the coverage that isn't required by law but can save you from financial disaster. Think of these as your safety net for the scenarios that essential coverage doesn't address.
Bailee coverage is technically an add-on to general liability, but it's so important for movers that it deserves its own mention. Standard general liability policies have a care, custody, and control exclusion—meaning they won't cover items entrusted to your business. If you're storing someone's furniture in your warehouse for a week and it gets damaged, bailee coverage pays for it. Without this, you're personally liable.
Commercial property insurance protects your physical assets—your warehouse, office equipment, tools, and moving supplies. If a fire destroys your storage facility or a storm damages your office, this coverage helps you rebuild and replace what you've lost. It's optional but becomes increasingly important as you accumulate valuable equipment and establish a fixed business location.
Business interruption insurance pays for lost income if you have to temporarily shut down due to a covered event. Your warehouse floods and you can't operate for three weeks? This coverage helps pay your bills and employee wages while you're getting back on your feet. Consider this once your business generates consistent revenue that you depend on.
Cyber liability insurance is increasingly relevant for moving companies that store customer data digitally. If your customer database gets hacked and credit card information is stolen, cyber liability helps cover notification costs, credit monitoring for affected customers, and legal fees. As more business moves online, this coverage becomes less optional and more essential.
When to Add Coverage: Timing Your Insurance Growth
Your insurance needs grow with your business. Here's when to add specific coverage types as your moving company expands.
Add bailee coverage immediately once you start offering any storage services, even short-term. The moment customer belongings sit in your facility overnight, you need this protection. Don't wait until you have a dedicated warehouse—even temporary storage in your garage counts.
Consider commercial property insurance once you sign a lease for warehouse or office space and start accumulating equipment worth more than $10,000. When you're operating out of your home with minimal equipment, it's probably not necessary. But once you've invested in dollies, straps, blankets, tools, and furniture pads—not to mention computers and office equipment—the replacement cost adds up fast.
Business interruption insurance makes sense once you have regular monthly expenses that continue even when revenue stops—employees on salary, long-term leases, equipment loans, or other fixed costs. If you're a solo operator with low overhead, you can probably skip this. But once you have a team depending on you for paychecks, it becomes critical.
Add cyber liability when you start storing customer payment information digitally or collecting sensitive personal data beyond basic contact information. If you're just using cash and paper records, it's not urgent. But once you're processing credit cards online or maintaining a customer database, you need protection against data breaches.
Annual Review Items: Your Yearly Insurance Checkup
Set a calendar reminder to review your insurance every single year at renewal time. Your business changes, and your coverage needs to keep up. Here's your annual checklist.
First, verify your employee count and total payroll for workers' comp. These policies are priced based on your payroll, and if you've grown, you might be underinsured. Conversely, if you've scaled back, you could be overpaying. Update your numbers to ensure accurate premiums and proper coverage.
Review your commercial auto policy for any changes in your fleet. Added a new truck? Sold an old one? Make sure every vehicle is properly covered and you're not paying for vehicles you no longer own. Also check that your cargo liability limits still match federal requirements and the value of goods you're typically moving.
Reassess your general liability limits based on your current revenue and the types of moves you're handling. If you've started serving commercial clients or handling high-value residential moves, you might need higher limits. Most moving companies carry $1 million per occurrence, but larger operations often increase this to $2 million or more.
Shop around and compare at least three quotes from different insurers. Insurance companies offer substantially better rates when you bundle multiple policies together—combining general liability, commercial auto, and property insurance with one carrier typically costs 10-20% less than splitting them between different insurers. Also, paying annually instead of monthly eliminates processing fees and often qualifies you for additional discounts.
Check whether you've expanded into new service areas or states. Insurance requirements vary by state, and operating across state lines triggers different regulations. If you've gone from local to interstate moving, you'll need to update your FMCSA filings and ensure your coverage meets federal standards.
Getting Started: Your Action Plan
If you're starting a moving company or realize you're missing key coverage, here's how to move forward. First, identify which state and federal requirements apply to your operation. Interstate movers face different rules than local moving companies, and each state has its own workers' comp and insurance mandates.
Next, work with an insurance agent who specializes in transportation and moving companies. General business insurance agents might not understand the specific requirements for cargo liability, FMCSA filings, or bailee coverage. A specialized agent can bundle your policies, ensure you meet all regulations, and often find you better rates.
Budget realistically. The average moving company spends around $20,000 annually on insurance when you factor in workers' comp, commercial auto, general liability, and cargo coverage. That might sound like a lot, but it's a cost of doing business—and it's infinitely cheaper than facing a lawsuit or regulatory violation without coverage.
Insurance isn't the exciting part of running a moving company, but it's the foundation that protects everything you're building. Get the essentials in place from day one, add optional coverage as you grow, and review everything annually. Your future self will thank you when you're protected instead of scrambling after an accident or claim. Take an hour this week to review this checklist against your current policies—it's one of the smartest investments you'll make in your business.
