Starting a moving company in Texas? You're entering a field where your truck isn't the only thing that needs to be road-ready. Before you load your first customer's couch, you need to understand Texas's insurance and licensing requirements—because one uninsured accident can cost you everything you've built.
Here's what catches most new moving company owners off guard: Texas actually has pretty specific insurance rules for movers. Unlike some states where you can operate with minimal coverage, Texas requires household goods movers to register with the Texas Department of Motor Vehicles (TxDMV) and prove they carry adequate insurance before they get a license. Let's break down exactly what you need.
The TxDMV License Requirement: Your Operating Permit
Before we get into insurance specifics, you need to understand that operating a moving company in Texas without a TxDMV license is illegal. Period. This isn't just a formality—the state takes it seriously. Your license proves you've registered your business, met vehicle and driver requirements, and most importantly, provided proof of insurance.
When you get your active TxDMV certificate number, it signals to customers that you've proven you're adequately insured with both liability and cargo coverage. Customers can verify your status anytime using the TxDMV's public Truck Stop database. No license? No customers who do their homework. And if you're caught operating without one, you're facing fines and potential legal action.
Commercial Auto Liability: Your First Line of Defense
Your moving trucks are on the road every day, which means auto liability insurance isn't optional—it's mandatory. Texas sets specific minimums based on your vehicle weight. If your truck weighs less than 26,000 lbs, you need at least $300,000 in commercial auto liability coverage. For heavier trucks over 26,000 lbs, that minimum jumps to $500,000.
Why the difference? Heavier vehicles cause more damage in accidents. A fully loaded 30,000-lb moving truck hitting another car creates catastrophically different results than a 10,000-lb cargo van. The insurance minimums reflect this reality. Many moving companies carry $1 million or more in auto liability, especially if they're working with commercial clients who require higher limits in their contracts.
One critical note: your insurance company must file your coverage electronically with TxDMV using Form E and H & I after you receive your Unique Identifier Number. This isn't something you can file yourself—your insurance carrier handles it. Your policy must remain active in the state's Motor Carrier Credentialing System at all times while you're operating.
Cargo Insurance: Protecting What You're Hauling
Cargo insurance covers everything inside your trucks—all those household goods your customers entrusted to you. Texas requires a minimum of $5,000 in cargo coverage per vehicle and $10,000 per occurrence when you're hauling multiple shipments.
Here's where it gets real: $5,000 doesn't go far when you're moving someone's entire home. A single bedroom set, TV, and electronics can exceed that amount. This is why most professional movers carry significantly higher cargo limits—often $50,000 to $100,000 or more. It costs more upfront, but one claim for a customer's destroyed furniture collection will make you wish you'd invested in better coverage.
Think about it this way: if you're moving a family from a 3,000-square-foot home and your truck gets into an accident or there's a fire, you're potentially liable for tens of thousands in belongings. The minimum coverage is just that—the absolute bare minimum to operate legally, not necessarily what you need to protect your business.
General Liability: Covering Accidents on the Job
General liability insurance covers property damage and bodily injury that happens during your moving operations—and Texas requires at least $300,000 in coverage. This is separate from your auto and cargo insurance, and it's essential for scenarios that happen all the time in the moving business.
Imagine your crew is carrying a heavy dresser up a narrow staircase and accidentally damages the wall, or someone drops a box on a customer's foot. Maybe your dolly scratches expensive hardwood floors. General liability covers these incidents. Without it, you're paying out of pocket—and depending on the damage, that could bankrupt a small operation.
Many commercial clients and property management companies won't work with movers who can't provide a Certificate of Insurance showing general liability coverage. If you want to handle office moves, apartment complex preferred vendor contracts, or corporate relocations, you'll need to show proof of this coverage before you get the job.
Workers' Compensation: The Texas Exception
Here's where Texas gets interesting: it's the only state that doesn't require most private employers to carry workers' compensation insurance. As a moving company owner, you can technically choose not to carry it—but that decision comes with serious risks.
If you have workers' comp, you're protected from most employee lawsuits if someone gets hurt on the job. Texas law says you can't be sued unless an employee died because of your negligence. Without coverage, your business is wide open to personal injury lawsuits. An employee throws out their back lifting a sofa? They can sue you directly for medical bills, lost wages, and pain and suffering.
There are situations where workers' comp becomes mandatory. If you take on government contracts—moving state offices, military families, or working with municipalities—you must provide workers' compensation coverage for employees working on those projects. Some transportation companies also need it to comply with federal requirements.
If you choose to operate as a "non-subscriber" without workers' comp, you have ongoing obligations. You must file DWC Form-005 every year between February 1 and April 30, display no-coverage notices, give written statements to new hires, and report work-related injuries that cause more than one day of lost time. Most insurance professionals recommend getting coverage anyway—the lawsuit protection alone is worth it.
Getting Licensed and Staying Compliant
Once you've secured your insurance coverage, the licensing process flows through the TxDMV. You'll register your business, provide proof of insurance through your carrier's electronic filing, and meet vehicle and driver requirements. After approval, you get your TxDMV certificate number—your ticket to legally operate.
Staying compliant means renewing your license annually, keeping your insurance active and filed with the state, and addressing customer complaints promptly. Let your insurance lapse? Your TxDMV license becomes invalid, and you're operating illegally until it's fixed. This is why most moving companies set up automatic renewals and payment reminders.
Your insurance must remain active in the Motor Carrier Credentialing System the entire time you're operating. If there's a lapse—even for a day—you're technically uninsured and unlicensed. That's a risk no legitimate business should take.
What This All Costs (And Why It's Worth It)
Insurance costs vary wildly based on your fleet size, coverage limits, driving records, and claims history. A small operation with one truck and minimal coverage might pay $5,000 to $8,000 annually. Larger companies with multiple vehicles, higher limits, and workers' comp can easily hit $20,000 to $50,000 or more per year.
Yes, it's a significant expense. But consider the alternative: one serious accident without insurance could mean hundreds of thousands in personal liability. A lawsuit from an injured employee could cost you your business, your home, and your personal assets. Proper insurance isn't overhead—it's the foundation of a sustainable moving company.
Plus, being properly licensed and insured opens doors. You can bid on commercial contracts, work with property management companies, and advertise with confidence. Customers increasingly check TxDMV license status before hiring movers. Being fully compliant isn't just about avoiding fines—it's about building trust and accessing better opportunities.
Next Steps: Getting Your Coverage Right
If you're starting a moving company in Texas, start with insurance. Contact commercial insurance agents who specialize in transportation and moving companies—they understand the TxDMV requirements and can help you get coverage that actually protects your business, not just meets the bare minimums.
Get quotes from multiple carriers, compare not just price but coverage limits and exclusions, and make sure they can file electronically with TxDMV. Once your insurance is in place, you can complete your TxDMV registration and get your license. Within a few weeks, you'll be ready to legally operate your moving business in Texas—protected, compliant, and ready to build something that lasts.
