If you run a moving company, you already know the work is physical. Your team lifts couches up narrow staircases, navigates heavy appliances through tight doorways, and loads trucks in all kinds of weather. It's demanding work—and that means injuries happen. A strained back, a dropped item on a foot, a slip on icy steps. Workers' compensation insurance isn't just a legal requirement (though it almost certainly is in your state). It's also your financial safety net when an employee gets hurt on the job.
Here's what you need to know about workers' comp for your moving business: how much it costs, what affects your rates, and how to keep your team safe while keeping your premiums manageable.
Is Workers' Comp Required for Moving Companies?
In almost every state, if you have employees, you're required to carry workers' compensation insurance. The exact threshold varies—some states require it as soon as you hire your first employee, while others set minimums like three or five employees. Four states (North Dakota, Ohio, Washington, and Wyoming) operate monopolistic systems, meaning you must purchase coverage through a state-run program rather than a private insurer.
But even if your state doesn't legally require it until you hit a certain employee count, you might need it sooner than you think. Many building management companies and commercial property owners require proof of workers' comp before they'll let your crew on-site. This certificate of insurance (COI) shows you have the coverage to protect your employees—and it protects the property owner from liability if someone gets hurt. Without it, you could lose access to jobs in apartment buildings, office complexes, and gated communities.
The penalties for skipping workers' comp are serious. Most states impose hefty fines—sometimes thousands of dollars per employee—and you could be on the hook for all medical bills and lost wages if an uninsured employee gets injured. It's not worth the risk.
How Class Codes Determine Your Workers' Comp Rates
When you apply for workers' comp, your insurer assigns your business a classification code—usually a three or four-digit number maintained by the National Council on Compensation Insurance (NCCI) or your state's rating bureau. This code determines your base rate, which reflects the historical injury risk for your type of work.
Moving companies typically fall under codes related to furniture moving, household goods storage, or freight handling. Because the work involves heavy lifting, repetitive motion, and physical strain, these codes carry higher base rates than, say, office administration. The logic is simple: movers get hurt more often than desk workers, so the insurance costs more.
Your premium is calculated per $100 of payroll. So if your class code has a rate of $8.50 per $100 of payroll, and you have $200,000 in annual payroll, your base premium would be $17,000. The larger your crew and the higher your payroll, the more you'll pay—but that also means you have more coverage in place when someone gets hurt.
What Affects the Cost of Workers' Comp for Moving Companies?
Your base rate is just the starting point. Several factors can push your premium up or bring it down:
Experience Modification Rate (EMR): This is the big one. Your EMR compares your claims history to other moving companies in your state. If you have fewer or less severe claims than average, you earn a credit below 1.0—say, 0.85—which lowers your premium. If you have more claims, you get a debit above 1.0, which increases your cost. A company with a 1.15 EMR pays 15% more than the base rate. Over time, investing in safety pays off in lower premiums.
Claims History: Frequent or severe claims drive up costs. Insurers look at how many claims you've filed and how much they've paid out. A pattern of back injuries from improper lifting or vehicle accidents will raise red flags—and your rates.
State Location: Workers' comp rates vary widely by state. Some states have higher average costs due to medical expenses, benefit levels, or regulatory environments. If you operate in multiple states, you'll see different rates in each jurisdiction.
Safety Programs and Discounts: Many states offer premium discounts for drug-free workplace programs—13 states specifically provide this incentive. You can also earn merit credits for safety training, on-site medical services, or other proactive measures that reduce injury risk. These discounts can add up.
Common Injuries in the Moving Industry
Understanding what causes injuries can help you prevent them—and keep your workers' comp costs down. Data from the Bureau of Labor Statistics shows that transportation and materials moving jobs (which include movers) account for more than 500,000 occupational injuries annually, about 22% of all workplace injuries.
The most common injury? Overexertion. Lifting heavy furniture, carrying boxes up stairs, and maneuvering awkward items all day long takes a toll. Overexertion injuries account for nearly 30% of claims in transportation and materials moving. Back strains, shoulder injuries, and hernias are typical.
First-year employees are especially vulnerable. Workers in their first year on the job account for 37% of all missed workdays from injuries. New movers haven't developed the muscle memory, technique, or situational awareness that comes with experience. That's why thorough onboarding, safety training, and mentorship from experienced crew members are so important.
Other common injuries include slips, trips, and falls (especially on stairs or in bad weather), cuts and scrapes from sharp edges or broken items, and vehicle-related injuries from loading dock accidents or traffic incidents.
How to Lower Your Workers' Comp Costs
The best way to reduce your workers' comp premium is to reduce injuries. That means building a culture of safety from day one. Train your crew on proper lifting techniques—bend at the knees, keep the load close to your body, and ask for help with heavy or awkward items. Use equipment like dollies, hand trucks, and furniture sliders to reduce strain. Inspect properties ahead of time to identify hazards like steep stairs, narrow doorways, or icy walkways.
Document everything. Keep records of safety training, equipment inspections, and incident reports. If an injury does occur, having documentation shows you take safety seriously—and it can help you defend against inflated claims.
Consider implementing a drug-free workplace program if your state offers premium discounts. These programs typically include pre-employment drug testing, post-accident testing, and clear policies about substance use. Thirteen states offer discounts or premium reductions for these programs, and they can also reduce the likelihood of accidents on the job.
Finally, work with your insurance broker to shop around. Workers' comp rates can vary between carriers, even for the same class code and payroll. An experienced broker who specializes in moving companies can help you find the best coverage at the best price—and identify additional discounts or credits you might qualify for.
Getting the Right Coverage for Your Moving Company
Workers' compensation isn't optional for most moving companies—it's a legal requirement and a practical necessity. The right policy protects your employees when they get hurt and protects your business from devastating financial losses. With the physical demands of moving work and the high injury rates in this industry, having solid coverage is one of the smartest investments you can make.
Start by verifying your state's requirements—how many employees trigger the mandate, whether you can use a private insurer or must go through a state fund, and what penalties apply for non-compliance. Then connect with an insurance broker who understands the moving industry. They can help you get accurate class codes, find competitive rates, and identify ways to lower your premium through safety programs and claims management.
And remember: the goal isn't just to check a box. It's to build a safer workplace, protect your team, and keep your business running smoothly when the unexpected happens.
