Moving Company Insurance
Getting business insurance for your moving company is essential.
This is because moving companies need to be protected against claims involving things that could foreseeably occur and cause them significant financial damage, such as property damage disputes, personal injuries, and traffic accidents.
For example, an employee may accidentally damage a customer’s property while loading it into a company vehicle or cause a traffic accident as a result of driving recklessly.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Moving Company
General liability insurance is — generally speaking — one of the most important insurance policies for moving companies.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Moving companies have unique risks beyond what might be covered by general liability insurance. Some examples of different types of policies that will often be needed for moving companies include:
- Worker’s compensation to cover employee injuries.
- Commercial auto policies would cover accidents involving company vehicles
- Commercial property insurance to cover claims that exceed general liability limits.
You can get started with traditional brick-and-mortar coverage providers (e.g., The Hartford, Hiscox, etc.) or with an online provider.
Many small business owners have started working with online business insurance providers instead of traditional brick-and-mortar insurers. Online insurers rely on AI to offer personalized coverage at a faster, more accurate, and more affordable rate.
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We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.
Cost of General Liability Insurance
The average moving company in America spends between $450-$1,000 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a moving company to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Finding the most affordable premium starts with getting accurate quotes from highly rated providers.
Common Situations That General Liability Insurance May Cover for a Moving Company
Example 1: As employees are loading items onto a truck, a passerby trips over a box and sustains multiple injuries in the fall. General liability insurance would likely cover any legal costs and injuries associated with the incident.
Example 2: Employees drop an expensive couch down a flight of stairs. The couch and stairwell wall are both damaged, as is an original painting that was staged at the bottom of the stairs. General liability insurance would likely cover damage to customers’ property like this.
Example 3: While visiting your company’s office, a customer slips on a wet floor and falls. They sustain a sprained wrist and concussion in the fall. General liability insurance would probably cover the cost of necessary medical care.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Moving Companies Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all moving companies should obtain:
Commercial Auto Insurance
Commercial vehicles, according to state law, must be insured with a commercial auto insurance policy. Your moving company will need each truck that the business owns insured. When selecting commercial auto coverage, make sure the insurance will cover the full value of your business’ moving trucks. Box trucks and semis often cost more to replace than sedans or other smaller cars do.
Commercial auto insurance can be purchased by itself or through a package policy.
Commercial Property Insurance
If your moving company owns an office, garage and/or expensive equipment, commercial property insurance is in order. This coverage helps protect buildings and items that are stored in them, such as equipment and inventory.
Commercial property insurance is generally purchased through a business owner’s policy (BOP).
Workers’ Compensation Insurance
Workers’ compensation insurance is needed if your moving company employs workers. Workers’ compensation covers on-the-job injuries, which employees are at risk for when they’re loading and unloading heavy items. Each state requires businesses that employ workers to carry this insurance.
Make sure this coverage is in place for all of your company’s employees—including those who are hired only part-time and/or for a short duration. Not insuring packers, loaders, and unloaders who are paid a wage could leave your company exposed to risk and potential legal penalties.
Commercial Umbrella Insurance
Commercial umbrella insurance offers supplemental liability protection for large claims. If a liability lawsuit exceeds the limits of an underlying primary policy, this insurance can offer additional protection for legal costs, settlements, and judgments.
Should one of your company’s drivers cause a pile-up on the highway, the resulting damages and injuries could be significant. This risk alone justifies carrying commercial umbrella coverage, and there are many other risks where the additional protection may be helpful to have.
Commercial umbrella insurance is generally purchased by itself or through a package policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your moving company:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Moving Company Insurance FAQ
Can I buy business insurance online for my moving company?
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a moving company?
Generally speaking, yes.
You may be required to purchase some forms of business insurance in order to operate legitimately (e.g., workers’ compensation, commercial auto, etc.).
Regardless, getting the right moving company business insurance should be done before operations begin due to the nature of the business (e.g., potential damaged property claims, employee injuries while moving heavy furniture, etc.).
Will insurance protect my moving company from everything?
Not necessarily. Certain exceptions may be written directly into your moving company insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.