Every moving company business needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best moving company business insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Moving Company Business
The most common and comprehensive type of moving company business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a moving company business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your moving company business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
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 business 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.
Common Situations That General Liability Insurance May Cover for a Moving Company Business
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 Company Businesses 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.
In addition to the policies outlined above, there are a few other types of coverage your moving company may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
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 business:
- 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 Business Insurance FAQ
Can I buy business insurance online for my moving company business?
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 business?
You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Will insurance protect my moving company business from everything?
Not necessarily. Certain exceptions may be written directly into your moving company business insurance policy, and some perils may be entirely uninsurable.
Is general liability the same as business owners?
A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.
How do I choose the best general liability insurance?
The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles.
However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.
Do I need business insurance if I already have an LLC?
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.