So you're starting a moving company. You've got the truck, the muscle, and probably a few friends who've promised to help on weekends. But here's what catches most new moving business owners off guard: you need insurance before you book your first customer. Not eventually. Not once you're established. Right now.
The good news? Getting the right insurance from day one isn't as complicated as it sounds. The bad news? Skip it, and a single accident could bankrupt your business before it even gets off the ground. Let's walk through exactly what coverage you need, when you need it, and what it'll actually cost.
Day One Coverage: What You Need Before Your First Job
Here's the thing most new moving company owners don't realize: your personal auto insurance and homeowners policy won't cover business activities. Zero coverage. If you're hauling someone's furniture in your truck and get into an accident, your personal auto insurer can deny the claim entirely because you were using the vehicle commercially. Same goes if you drop a dresser on a customer's hardwood floor—your homeowners policy isn't picking up that tab.
Before you book that first move, you absolutely need two types of coverage: commercial auto insurance and general liability insurance. Commercial auto covers your moving truck if you're in an accident—whether you hit someone or they hit you. It also covers injuries to other drivers and damage to their vehicles. For moving companies, this runs about $876 per month on average, or roughly $10,512 annually. Yes, that's significantly more than personal auto insurance, but it's also protecting a commercial vehicle that's being driven daily, often loaded with thousands of pounds of cargo.
General liability insurance is your protection against the everyday risks of moving: customer injuries, property damage, and lawsuits. If a client trips over your dolly and breaks their ankle, general liability covers their medical bills and legal costs if they sue. If you accidentally gouge a wall while maneuvering a couch, it covers the repair. Most moving companies pay around $120 per month for this coverage—about $1,440 per year. And here's the kicker: most commercial clients won't even consider hiring you without proof of general liability. Property managers and landlords typically require you to show a certificate of insurance before they'll approve you for building access.
The Moment You Hire Help: Workers' Compensation
Let's say business is picking up and you hire your first employee—even part-time. In almost every state, you're now legally required to carry workers' compensation insurance. Texas and South Dakota are the only exceptions. New York is particularly strict, mandating coverage the moment you hire even one part-time worker. Florida gives you slightly more runway, letting you hire up to four employees before requiring coverage.
Workers' comp covers medical bills and lost wages if an employee gets hurt on the job. And in the moving business, injuries happen. Someone throws out their back lifting a refrigerator, slips carrying boxes down stairs, or gets their finger crushed in a truck door. Workers' comp pays for their emergency room visit, surgery if needed, physical therapy, and disability benefits while they're unable to work. For moving companies, expect to pay around $755 per month, or about $9,058 annually. That might sound steep, but consider the alternative: without coverage, you're personally liable for every dollar of medical bills and lost wages. A single serious injury could easily cost you $50,000 or more.
Protecting Your Customers' Belongings: Cargo Insurance
Here's where things get interesting. Cargo insurance—also called inland marine insurance—covers your customers' belongings while they're in your care. If the truck gets into an accident and destroys someone's furniture, or if items are damaged during the move, cargo insurance reimburses the customer for their losses.
Now, cargo insurance isn't legally required for local moves. But it's essential for building trust and protecting your reputation. Customers expect their belongings to be insured. When you can confidently tell them their items are covered up to their full value, you'll book more jobs and command higher rates. Plus, if you ever want to do interstate moves, federal regulations require you to offer customers valuation coverage—essentially cargo insurance.
Related to cargo insurance is bailee insurance, which specifically covers other people's property that's been entrusted to you. If you offer storage services—even short-term storage between moves—bailee insurance protects items while they're sitting in your warehouse. This is separate from cargo insurance, which only covers items in transit.
Growth Triggers: When to Add More Coverage
Your insurance needs evolve as your business grows. Here are the key milestones that should trigger a conversation with your insurance agent:
When you lease or buy office space or a warehouse, you'll need commercial property insurance. This covers the building itself (if you own it) and all your business property inside—office equipment, tools, packing supplies, and furniture. If you're bundling coverage to save money, ask about a Business Owner's Policy (BOP), which packages general liability and commercial property insurance together. For moving companies, a BOP typically costs around $183 per month.
When you start offering packing services or moving consultation, consider professional liability insurance (also called errors and omissions insurance). This covers you if a customer claims your advice or services caused them financial harm. Say you advised a client on the best way to pack their antiques, they followed your advice, and the items were damaged anyway—professional liability covers the legal costs if they sue. This typically runs about $82 per month for moving companies.
When you expand to interstate moves, you'll need to register with the FMCSA (Federal Motor Carrier Safety Administration) and meet federal insurance requirements. Note that new broker and freight forwarder financial responsibility rules took effect January 16, 2026, so make sure your provider is compliant with current federal regulations.
Common Mistakes That Cost New Moving Companies Dearly
The biggest mistake? Choosing insurance based solely on price. Yes, the Hartford offers rates starting at $73 monthly and NEXT provides workers' comp for $245 monthly—those are real numbers from 2026 data. But the cheapest policy isn't always the best fit. Policies vary wildly in what they actually cover, their exclusions, and their limits. A cheap policy with major coverage gaps will cost you far more when you actually need to file a claim.
Another critical error: not reviewing your coverage regularly. Many business owners set up insurance at launch and never think about it again. But your business today isn't the same as it was a year ago. Maybe you've added three employees, bought a second truck, or started offering storage services. Your original policy probably doesn't cover these changes, leaving you dangerously exposed. Make it a habit to review your coverage at least annually, and immediately after any major business change.
Many new owners also delay getting insurance until they feel more established or until a contract requires it. But losses don't wait for convenient timing. A lawsuit from your third job could be just as financially devastating as one from your hundredth. Get proper coverage from day one—it's far easier to maintain insurance than to try getting it after you've already had an incident.
What It Really Costs: Budget Planning for New Moving Companies
Let's talk real numbers. For a solo operator just starting out with one truck and no employees, expect to budget around $1,000 per month for commercial auto and general liability insurance combined. Once you hire your first employee and add workers' comp, you're looking at closer to $1,750 per month total. Add cargo insurance and other endorsements, and a small moving company with 2-3 employees typically spends $2,000-2,500 monthly on insurance.
Several factors affect your actual costs: the value of your trucks, your business location, your claims history, how many employees you have, and which specific coverages you choose. States with higher injury rates or more litigation typically have higher workers' comp premiums. If you've had previous business insurance claims, expect to pay more.
Getting Started: Your Insurance Checklist
Before you launch your moving company, get quotes from at least three insurers who specialize in commercial transportation. Look for providers familiar with moving companies specifically—they'll understand your unique risks and coverage needs. Have information ready about your vehicles (make, model, year, value), your anticipated revenue for the first year, how many employees you plan to hire, and what services you'll offer.
Don't just accept the first quote. Ask each insurer to explain exactly what's covered and—more importantly—what's excluded. Request certificates of insurance for each policy so you can provide them to clients who require proof of coverage. And build insurance costs into your pricing from day one. If you don't account for insurance in your rates, you'll squeeze your margins and potentially price yourself out of profitability.
Starting a moving company is exciting, but it comes with serious financial risks. The right insurance protects not just your business assets, but your personal assets too. Get proper coverage from day one, review it regularly as you grow, and don't cut corners to save a few dollars on premiums. Your future self—and your business—will thank you.
