The complete guide
to moving company
insurance.
Most moving companies are underinsured, misinsured, or carrying policies with gaps they do not know about. One uncovered incident can end a business that took years to build.
This guide covers everything — the four coverage types every mover needs, state and federal requirements, common gaps, costs, and how to find a broker who actually understands the moving industry.
Get a moving company insurance quote
4
Core coverage types every mover needs
$750K
FMCSA minimum liability for interstate carriers
60¢/lb
Released value protection — the minimum you owe customers
15–25%
Of payroll goes to workers comp for moving crews
$8–18K
Typical annual insurance cost for a single-truck operation
50 states
Moving insurance requirements vary — know your state
Work with a broker who
knows moving insurance.
General business insurance brokers frequently miss coverage gaps specific to moving companies. We refer moving company owners to specialized transportation insurance brokers who work with movers every day — the right coverage at competitive rates.
No cost to connect. The broker earns a commission from the insurer — you pay your premium, not a referral fee.
We connect you with a transportation insurance specialist. No obligation.
What every moving company
needs to be properly covered.
Each coverage type addresses a different category of risk. Missing any one of them leaves a gap that can be financially catastrophic. Here is what each covers, what it does not cover, and what it costs.
General liability
Min coverage: $1,000,000 per occurrence
Typical cost: $1,440 – $3,840 / year
What it covers
Covers bodily injury and property damage that occurs during your operations but is not directly related to cargo in your care. If a crew member drops equipment that injures a customer, if your truck clips a building while backing in, if a customer trips over your equipment — general liability covers these incidents.
What it does NOT cover
Does not cover damage to items you are transporting (that is cargo insurance), employee injuries (workers comp), or your own vehicles (commercial auto).
State & regulatory notes
Most state licensing authorities require minimum $300,000 to $1,000,000 general liability. Many commercial customers, apartment complexes, and corporate relocation accounts require $1,000,000 minimum before they will work with you.
Commercial auto
Min coverage: Varies by state and vehicle type
Typical cost: $2,880 – $6,720 / year per truck
What it covers
Covers your moving vehicles — trucks, vans, and any vehicle used in business operations — for collision, comprehensive, and liability. Required any time a vehicle is used commercially, regardless of size or frequency.
What it does NOT cover
Personal auto insurance explicitly excludes commercial use. A single accident in a personally-insured vehicle used for moving will result in a denied claim. No exceptions.
State & regulatory notes
Interstate carriers must file evidence of commercial auto coverage with FMCSA. Premium depends on: vehicle age and value, driver history, radius of operation, and annual mileage. Clean MVR (motor vehicle record) for all drivers significantly lowers premiums.
Cargo / inland marine
Min coverage: Match your maximum job value
Typical cost: $960 – $2,880 / year
What it covers
Covers customer belongings in your care, custody, and control during a move. When a customer's item is damaged and you owe compensation under released value (60¢/lb) or full value protection, cargo insurance is what pays — rather than coming out of your operating funds.
What it does NOT cover
Cargo insurance covers your legal liability to customers. It does not replace a customer's belongings for full market value unless you have specifically agreed to full value protection AND have corresponding cargo coverage limits.
State & regulatory notes
Coverage limits must match or exceed the maximum value of loads you regularly transport. Moving high-value items (art, antiques, pianos, fine electronics) may require a rider or higher limit. Review your policy for per-article sub-limits that may apply.
Umbrella / excess liability
Min coverage: $1,000,000+ above underlying limits
Typical cost: $800 – $2,400 / year
What it covers
An umbrella policy sits on top of your general liability and commercial auto policies, extending their limits when a claim exceeds the underlying coverage. If a serious accident results in a $2,000,000 judgment and your GL limit is $1,000,000, umbrella covers the difference. Increasingly required by corporate relocation accounts and apartment complexes.
What it does NOT cover
Umbrella does not replace underlying policies — it extends them. You must maintain the required underlying limits for umbrella coverage to activate. It also does not cover professional liability, intentional acts, or workers comp.
State & regulatory notes
Corporate relocation contracts, property management companies, and military housing offices commonly require $2,000,000-$5,000,000 in total liability coverage. An umbrella is the most cost-effective way to reach those thresholds without inflating primary policy premiums.
Surety bonds
Min coverage: Varies by state — typically $10,000-$50,000
Typical cost: $200 – $800 / year
What it covers
A surety bond is a three-party agreement between you (the principal), a bonding company (the surety), and the state or customer (the obligee). It guarantees that you will fulfill your contractual obligations or the bond pays. Some states require household goods carriers to maintain a surety bond as a condition of licensing — in addition to or instead of certain insurance requirements.
What it does NOT cover
A surety bond is not insurance for your business — it protects the customer or state against your non-performance. Unlike insurance, if the bonding company pays a claim, they will seek reimbursement from you. Bonds do not replace liability or cargo insurance.
State & regulatory notes
FMCSA allows interstate carriers to file a $10,000 cargo bond (Form BMC-34) as an alternative to cargo insurance for household goods. Several states have independent bond requirements for intrastate movers. Check your state licensing requirements at the state guide hub.
Warehouse legal liability
Min coverage: Match the value of goods in storage
Typical cost: $600 – $2,400 / year
What it covers
If you store customer belongings in any facility — your warehouse, a storage unit, a trailer on your lot — standard cargo policies typically cover items in transit, not items in storage. Warehouse legal liability covers your legal liability for loss or damage to customer goods while they are in your care and custody in a storage facility.
What it does NOT cover
Warehouse legal liability covers your legal liability to customers — it does not replace the full market value of stored goods unless you have specifically contracted for that. It also does not cover damage from causes excluded in the policy (flood, earthquake) without separate riders.
State & regulatory notes
Many movers who offer storage do not realize their cargo policy excludes items in storage. This is one of the most common coverage gaps in the industry. If you offer any storage service — even short-term portable storage — confirm your coverage with your broker before accepting a single item.
Workers compensation
Min coverage: Statutory limits vary by state
Typical cost: 15 – 25% of payroll
What it covers
Covers crew members injured during work — medical expenses, lost wages, and rehabilitation. Moving is physically demanding with meaningful injury rates. A crew member injured on the job without workers comp creates significant personal and financial exposure for the company owner.
What it does NOT cover
Workers comp does not cover injuries that occur outside of work, intentional self-injury, or injuries to genuinely independent contractors (subject to classification rules — see FAQ).
State & regulatory notes
Premium is calculated as a percentage of payroll based on job classification code for moving work — classified as physically demanding and priced accordingly. Shop workers comp through a broker who works with transportation companies; general business brokers often misclassify moving work.
6 coverage gaps that
catch movers off guard.
These are the most common insurance mistakes we see moving company owners make — gaps that only become apparent when a claim is filed.
Wrong vehicle classification
High riskCommercial vehicles must be specifically scheduled on your commercial auto policy. Adding a new truck without updating the policy creates a coverage gap on that vehicle. Many movers learn this the hard way after an accident.
The fix
Notify your broker immediately when adding any vehicle. Update the policy before the truck does its first job.
Employee vs. contractor misclassification
High riskUsing 1099 labor creates workers comp complications. If a worker classified as an independent contractor is injured and is actually functioning as an employee under IRS and state labor law standards, your workers comp may not cover them — and your exposure can be significant.
The fix
Have a transportation attorney review your crew classification. If there is any ambiguity, a ghost policy (workers comp policy with no employees) can cover misclassification risk affordably.
Inadequate cargo limits
Medium riskIf your cargo coverage limit is lower than the value of items you regularly transport, you are underinsured. High-value clients with expensive art, antiques, or electronics may require you to carry higher limits.
The fix
Review your per-occurrence and per-article cargo limits annually. For high-value moves, ask your broker about agreed value coverage or scheduled article riders.
Lapse during off-season
High riskSome movers cancel or reduce coverage during slow months to save money. A single job done without coverage — even for a friend, even for free — creates uninsured liability exposure that can be financially catastrophic.
The fix
Maintain continuous coverage year-round. Ask your broker about seasonal payment plans if cash flow is tight in winter months.
No hired and non-owned auto
Medium riskIf your crew uses personal vehicles for any business purpose — driving to a job site, making supply runs — those vehicles are not covered by your commercial auto policy unless you have hired and non-owned auto (HNOA) coverage.
The fix
Add HNOA to your general liability or commercial auto policy. Relatively low cost and covers a common exposure most movers overlook.
Storage facility gap
Medium riskIf you store customer belongings in a warehouse or storage unit, your standard cargo policy may not cover items in storage — only items in transit. Warehouse legal liability coverage is a separate product.
The fix
If you offer any storage service, confirm with your broker that your cargo policy covers items in storage, or add warehouse legal liability coverage.
Moving company insurance
questions answered.
The basics
What insurance does a moving company need?
Four core coverage types: general liability (bodily injury and property damage during operations), commercial auto (your trucks and vehicles), cargo/inland marine (customer belongings in your care), and workers compensation (required if you have employees in most states). Interstate movers additionally need FMCSA-mandated minimum liability of $750,000 filed with their MC authority.
How much does moving company insurance cost?
Rough annual ranges for a single-truck operation: general liability $1,440-3,840; commercial auto $2,880-6,720 per truck; cargo insurance $960-2,880; workers compensation 15-25% of payroll. Total for a single-truck operation: $6,400-14,400/year depending on state, operation type, and claims history. Multi-truck operations scale with fleet and payroll.
Can I use personal auto insurance for my moving truck?
No. Personal auto insurance explicitly excludes commercial use. If you use a personally-insured vehicle for moving operations and have an accident, your insurer will deny the claim — even if it's your own pickup truck used occasionally. Any vehicle used in a commercial moving operation requires commercial auto insurance.
When do I need insurance — before my first job or before I register my business?
Before your first job. You are financially exposed from the moment you accept payment for a move, regardless of your registration status. Most state licensing authorities also require proof of insurance before they will issue your carrier permit, so you need coverage in place to get licensed in the first place.
Should I use a general business insurance broker or a transportation specialist?
Always a transportation specialist. General business brokers frequently misclassify moving work, miss coverage gaps specific to carriers, and may not know about cargo insurance requirements, FMCSA filing requirements, or the nuances of hired and non-owned auto for moving operations. The difference in premium, coverage, and claims handling can be significant. Use a broker who works with moving companies every day.
Coverage details
What is the difference between cargo insurance and released value protection?
Released value protection (60 cents per pound per article) is the contractual liability you offer customers — a legal obligation you have as a carrier, not an insurance product. Cargo insurance (inland marine) is what covers you against that liability. When a customer's item is damaged and you owe compensation, cargo insurance pays the claim so it does not come out of your operating funds.
What does general liability NOT cover for moving companies?
General liability does not cover: damage to items you are transporting (cargo insurance), employee injuries (workers comp), damage to your own vehicles (commercial auto), intentional acts, professional errors and omissions, or employment practices liability. Each of these requires separate coverage.
What insurance do I need for interstate moves?
Federal FMCSA regulations require interstate household goods carriers to file proof of minimum $750,000 liability insurance with their MC authority application. Most brokers recommend $1,000,000 minimum regardless of the federal floor. Your commercial auto policy must specifically cover interstate operations, and your cargo policy must cover goods in transit across state lines.
Do I need separate insurance for a storage trailer or warehouse?
Yes — standard cargo policies cover items in transit, not items in storage. If you store customer goods in any facility (your warehouse, a storage unit, a trailer in your lot), you need warehouse legal liability coverage. This is a separate product and a common gap for movers who offer storage as a service.
What is hired and non-owned auto coverage and do I need it?
Hired and non-owned auto (HNOA) covers liability when your employees use their personal vehicles or rented vehicles for business purposes — driving to a job, making supply runs, etc. If a crew member gets in an accident driving their personal car on the way to a job site, your commercial auto policy does not cover it. HNOA does. It is inexpensive to add and covers a real exposure most movers overlook.
What is a certificate of insurance (COI) and when do I need one?
A certificate of insurance is a document from your insurer confirming your coverage types and limits. Apartment complexes, commercial clients, corporate relocation companies, and building managers often require a COI before allowing a move on their property. Some require being listed as an "additional insured." Your broker can generate COIs quickly — keep several on hand and be ready to provide them on short notice.
Cost & buying
How do I lower my moving company insurance premiums?
The most effective levers: clean MVR (motor vehicle record) for all drivers — accidents and violations raise premiums significantly; documented safety training program — some insurers discount for this; claims-free history — every claim raises future premiums more than the claim was worth in many cases; higher deductibles — trading premium for out-of-pocket exposure on small claims; bundling policies with one insurer — often yields 10-15% multi-policy discount.
Should I pay insurance monthly or annually?
Annually if possible — most insurers charge 10-15% more for monthly payment plans (effectively an interest charge). If cash flow requires monthly, pay monthly, but build toward annual payment as the business grows. Some brokers offer quarterly payment options as a middle ground.
How many insurance quotes should I get?
At least three, ideally from brokers who specifically serve the transportation industry. Premiums can vary 30-50% for identical coverage across different carriers. A specialist broker will quote multiple carriers on your behalf from a single application — you do not need to apply separately to each insurer.
What information do I need to get a moving company insurance quote?
Typical requirements: business entity information and address; USDOT number (if applicable); years in business and years of experience; list of vehicles with VIN, year, make, model, and GVWR; driver information including MVR for each driver; estimated annual revenue; estimated annual payroll (for workers comp); prior claims history for the past 3-5 years; current insurance declarations page (if switching). Having this ready speeds the quoting process significantly.
What happens if I have a claim?
Report it to your insurer immediately — do not wait to see if it "blows over." Late reporting is grounds for claim denial. Document everything: photos, inventory, customer statements, bill of lading. Your insurer assigns an adjuster who investigates and determines coverage. Claims can take weeks to months to resolve. A single significant claim can raise your premiums at renewal — sometimes substantially.
Workers & contractors
Do I need workers compensation if I use 1099 contractors?
Possibly — and this is one of the most misunderstood risks in the industry. If the IRS or your state labor board determines your 1099 workers are actually employees (based on control, behavioral integration, and financial factors), you can be liable for back workers comp premiums and significant penalties. States have been increasingly aggressive about this in the moving industry specifically. Consult a transportation attorney before assuming 1099 classification eliminates your workers comp obligation.
What is a ghost policy for workers compensation?
A ghost policy (also called an owner-only workers comp policy) is a workers comp policy with no employees — it covers only the owner. It is used by owner-operators to satisfy state licensing requirements that mandate workers comp coverage, without paying premiums on employee payroll. Cost is typically $400-960/year. If you use 1099 labor and face misclassification risk, a ghost policy combined with requiring contractors to carry their own workers comp is a common risk management approach.
Should I require subcontractors to carry their own insurance?
Yes — always. Any subcontractor or independent contractor working on your jobs should provide a certificate of insurance showing their own general liability and workers comp coverage. This transfers risk back to them and their insurer. Without this, if a subcontractor is injured or causes damage on your job, you may be liable under your own policy. Keep COIs on file for every contractor you use.
What if a crew member is injured and I do not have workers comp?
Significant exposure. The injured worker can sue you personally for medical expenses, lost wages, and pain and suffering — without the workers comp system's protections that cap your liability. In states where workers comp is mandatory and you have not carried it, you also face regulatory fines and the state can assess back premiums. The cost of a single serious injury without workers comp coverage can exceed the annual premium many times over.
State & federal requirements
What are FMCSA insurance requirements for interstate movers?
For household goods carriers operating in interstate commerce, FMCSA requires: minimum $750,000 public liability insurance filed on Form BMC-91 or BMC-91X; cargo insurance of $5,000 per vehicle and $10,000 per occurrence filed on Form BMC-34 (or a $10,000 cargo bond alternative). These are minimums — most industry professionals recommend significantly higher limits in practice.
Do insurance requirements differ by state for intrastate movers?
Significantly. Some states have minimal intrastate carrier requirements; others (California, Florida, New York, Texas) have specific minimum insurance levels that must be filed with the state regulatory authority as a condition of your carrier permit. Check the state licensing hub on this site for your specific state's requirements, and verify current requirements directly with the regulatory authority — they change.
What is a BMC-91 form?
Form BMC-91 (or BMC-91X for foreign carriers) is the FMCSA insurance filing form that proves your public liability coverage meets federal minimums. Your insurance company files this directly with FMCSA on your behalf when you obtain or renew coverage. If your insurance lapses, FMCSA is notified and your MC authority can be revoked. Always maintain continuous coverage to keep your authority active.
Does my insurance need to match the state where I am based or the states I operate in?
Your insurance must be valid in every state you operate in. Most commercial insurance policies cover all 50 states automatically — verify this with your broker. If your policy has geographic restrictions, you need an endorsement for each state you operate in. For FMCSA purposes, a single filing covers interstate operations nationally.
Get properly covered
before your next job.
We refer moving company owners to transportation insurance specialists — brokers who work with movers every day and know the gaps that general brokers miss.
Related resources