Why is insurance a must for moving companies?
It's all too easy to dent a piece of furniture while moving it, or have items shift during shipping. Household movers insurance covers damage to customer property, along with auto accidents and employee lifting injuries. You'll likely need insurance to comply with laws and contracts.
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5 insurance policies every moving company should consider
These insurance policies protect against the most common risks in the moving industry.
Commercial auto insurance
If your moving truck backs into a fence at a customer’s new home, this policy can help pay for legal costs and repairs. Almost every state requires this coverage for business-owned vehicles.
- Bodily injuries caused by your truck
- Property damage caused by your truck
- Vehicle theft and vandalism
General liability insurance
A commercial general liability policy protects against the most common types of lawsuits, including accidental damage to customer property. Moving companies might need it to get a commercial lease.
- Damage to customer property
- Customer slip-and-fall injuries
- Defamation and copyright lawsuits
Workers' comp insurance
Most states require moving companies with employees to carry workers' compensation. Personal health insurance won’t cover work-related injuries, which makes this policy crucial for sole proprietors, too.
- Work-related medical bills
- Disability benefits
- Lawsuits from employee injuries
Business owner's policy
Small moving businesses can buy general liability coverage and commercial property insurance together at a discount in a BOP. It protects against common lawsuits and business property damage.
- Accidents that damage customer property
- Damaged or stolen business property
- Business interruption coverage
Cyber insurance
This type of coverage helps moving companies recover financially after a data breach or cyberattack. It's sometimes called cyber liability insurance or cybersecurity insurance.
- Data breach investigations
- Customer notification costs
- Cyberextortion demands
Moving insurance costs
From our customer data, here's a quick look at average household movers insurance premiums:
Commercial auto: $876 per month
General liability: $120 per month
Workers' compensation: $755 per month
Factors that can affect your business insurance costs include:
- Moving services you offer, such as transportation of high-value items
- The value of your trucks
- Business revenue
- Number of employees
- Types of insurance purchased
- Coverage options and exclusions
- History of insurance claims
Hear from business owners like you who purchased insurance coverage.
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Common questions about insurance for moving companies
What other types of insurance coverage do moving companies need?
To fully protect your moving company, you should consider carrying the following policies:
- Cargo insurance covers household goods and other items transported by your business. A type of inland marine insurance, it'll provide reimbursement for stolen, lost, and damaged items.
- Professional liability insurance pays for your legal defense costs if a customer accuses your business of professional negligence. For example, a customer might sue your business if you deliver their belongings to the wrong address or fail to show up on a scheduled moving day.
- Commercial umbrella insurance provides additional coverage once the limit is reached on an underlying policy, such as general liability, commercial auto, or employer's liability insurance. You might need it to comply with higher limits requested in a contract.
Some policies, such as cargo insurance, may be required by your clients or by the Federal Motor Carrier Safety Administration (FMCSA), especially for long-distance movers. Our licensed agents can help you compare moving insurance quotes from trusted providers and find the right insurance solutions for your needs. Fill out our easy online application to get started.
Do movers need to be licensed and bonded?
This primarily depends on the laws in your state, among other factors. You might need a license, bond, or insurance to comply with local laws or work with some clients. Even when it's not required, this can help establish trust and give you an edge over competitors.
Here are a few examples of state requirements for movers:
- In Florida, interstate movers of household goods must register with the Florida Department of Agriculture and Consumer Services (FDACS). They must carry bodily injury and property damage liability insurance in amounts dependent on vehicle weight. They must also carry $10,000 per shipment in liability insurance for the loss or damage of household goods. Or, if they operate less than two trucks, they can file a $50,000 performance bond or certificate of deposit instead of the latter.
- In Texas, moving companies must register with the Department of Motor Vehicles (TxDMV) and display their name, TxDMV certificate number, and USDOT number on both sides of their trucks.
- In Illinois, movers need to get a household goods license from the Illinois Commerce Commission (ICC). They must have at least $750,000 in public liability and property damage insurance and a minimum of $10,000 in cargo insurance.
What insurance requirements do moving companies have that operate in multiple states?
All interstate movers must comply with FMCSA regulations and get a USDOT number, which is required by many states as well. If you transport hazardous materials or operate heavier vehicles, you may need additional insurance.
There are a couple other requirements specific to interstate moves:
- You must provide your customers with a copy of the booklet "Your Rights and Responsibilities When You Move."
- You must offer two insurance options to your customers. Full value protection means your business is responsible for the replacement value of lost or damaged goods. Released value protection includes minimal coverage of 60 cents per pound per article, and must be offered at no additional charge.
It's important to stay on top of any relevant state and federal laws, as you could face penalties for violations.
How can you save money on household good movers insurance?
There are a few ways to save money on business insurance, while still getting the coverage you need:
- Compare rates from different insurance companies. You could contact each company separately, but it's easier with the help of an agent. TechInsurance helps you find affordable moving company insurance with our easy online application that retrieves quotes from top-rated providers.
- Bundle insurance products. When you buy policies from the same company, you can often combine different types of insurance for a discount. The most popular bundle is a business owner's policy.
- Customize your policy. Choosing lower limits or a higher deductible is an easy way to reduce your premium. However, make sure to choose limits that will cover a potential claim, and a deductible you can easily afford.
- Avoid expensive add-ons. For instance, a moving company might decide to carry basic auto liability insurance instead of optional coverages, such as physical damage coverage.
An insurance agent can help you find cost-saving bundles, choose the right policy limits, and make sure your coverage matches the needs of your moving company.