How much is moving company insurance?

Movers pay an average of $876 per month, or $10,512 per year, for commercial auto insurance.

If your moving truck is involved in an accident, commercial auto insurance would help cover legal costs, medical bills, and any damage you caused. For example, if your truck backs into a customer's fence on their moving day, it would pay for repairs and the cost of hiring an attorney if your business is sued.

Each state has its own licensing and insurance requirements for moving companies. Most states require commercial auto coverage for vehicles owned by a business. If you personally own, rent, or lease a moving truck, then you'd want to buy hired and non-owned auto insurance (HNOA) instead.

For complete protection, you'll need other types of insurance coverage as well. Cargo insurance provides reimbursement for damaged, destroyed, or lost property. You might also need on-hook towing insurance if you transport customer vehicles.

Interstate moving companies must get a USDOT number and comply with the Federal Motor Carrier Safety Administration's (FMCSA) insurance regulations for household goods movers.

You can also buy physical damage coverage, such as collision or comprehensive coverage, to pay for damage to your moving truck from collisions, vandalism, falling objects, and similar incidents.

The cost of commercial vehicle insurance depends on many factors, including your policy limits and deductible, the types of trucks you own, the value of the items you transport, and the insurance options you choose. It'll cost less to insure truck drivers with clean records over those who've been involved in an accident.

Moving companies pay an average of $120 per month, or $1,440 per year, for general liability insurance.

General liability insurance covers common third-party accidents, including bodily injuries and property damage. For example, if a mover drops a valuable item while carrying it into a customer's new home, a general liability policy would replace the damaged item or pay for legal costs if the customer sues.

This policy can also pay for lawsuits related to copyright infringement and defamation, including slander and libel. That makes it important for small businesses that have a website or promote their services on social media.

General liability policies often have exclusions for items in your business's care, custody, or control. You can buy bailee coverage as a rider to fill this gap.

Below is the average general liability insurance policy for moving companies that buy from TechInsurance:

Premium: $120 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $625

General liability coverage is sometimes required in order to get licensed as a mover in your state. You might also need it to sign a commercial lease, get a business loan, or work with some clients.

In addition, movers must offer liability protection to their customers, with an option to choose either full value protection or released value protection.

The cost of general liability insurance is based on numerous factors, including your business operations, the coverage options you choose, the size and location of your business, the number of employees you have, and any additional insured endorsements.

TechInsurance's agents recommend a business owner’s policy (BOP) for most small businesses. A BOP bundles general liability insurance with commercial property insurance at a discount. It often includes business interruption insurance, which covers costs if your business is forced to close temporarily.

Moving companies pay an average of $755 per month, or $9,058 annually, for workers' compensation insurance.

Workers' comp covers medical costs and disability benefits when you or an employee suffers a work-related injury or illness. Most policies include employer's liability insurance, which pays for legal fees related to employee injuries.

If an employee develops a back injury after years of heavy lifting, this policy would pay for their surgery, medications, and physical therapy. It would also provide them with part of the wages they'd otherwise miss out on while recovering.

To comply with state laws, moving businesses that have employees typically must purchase this policy. Workers' comp isn't usually required for sole proprietors or independent contractors, but it's still recommended since most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation insurance is based on several factors, primarily the number of employees you have and their occupational risks. Other factors, such as the cost of medical treatment in your state, can also affect your premium.