Moving business insurance requirements can seem overwhelming at first. Your coverage decisions depend on two main factors: legal requirements in your area and what clients demand in their contracts. Having proper insurance coverage opens doors to profitable commercial moving jobs while keeping your business compliant and protected from major risks.
Moving Business Insurance Requirements
Moving business insurance requirements include workers' comp and commercial auto coverage, but you also need general liability for commercial contracts.
Discover cost-effective moving business insurance below.
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Updated: October 17, 2025
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Key Takeaways
Moving companies with employees must carry workers' compensation insurance in most states, while commercial auto insurance is required for any business vehicle operations.
Moving companies need general liability insurance, cargo coverage and commercial property protection to safeguard against common business risks.
Secure better coverage rates by accurately documenting equipment values, reviewing client contract requirements and partnering with insurers specializing in moving companies.
What Business Insurance Is Required for Moving Businesses?
Legal Requirement: Typically required once you have employees | Medical care, lost wages, disability, rehabilitation | If a mover injures themselves while loading/unloading, this pays their medical costs and lost wages, and keeps you from facing a personal injury lawsuit. | |
Legal Requirement: For vehicles used in providing the moving service | Vehicle damage, third‑party liability, bodily injury | Trucks, vans, and trailers used in moving can cause or suffer damage. This coverage ensures those losses are handled. | |
Contract/Client Expectation: Many clients or contracts require basic liability protection | Third‑party injury, property damage, legal defense | If a mover accidentally damages a client’s furniture or a customer trips during the move, this covers the claim and legal costs. | |
Client Expectation: For claims involving service mistakes or failure to meet promised performance | Errors, omissions, faulty services, failure to deliver | If the client claims you lost or damaged items or didn’t perform as promised, this helps you defend and settle. | |
Contract Requirement: For high-value moves or demanding clients | Excess liability above primary policy limits | If a damage claim or injury runs beyond your liability limits (for example, a pricey antique broken), umbrella coverage steps in. | |
Cargo/Goods in Transit Insurance | Operational Requirement/Client Expectation | Damage or loss of client goods while in transit | Clients expect that their belongings are covered during the move. If items are lost, stolen, or damaged en route, this insurance reimburses them. |
Bailee’s/Warehouse Legal Liability | Client/Contract Requirement: When storing client goods temporarily | Liability for damage during storage or handling | If you temporarily store client items (in a warehouse or truck), this ensures you cover damages occurring while in your care. |
Commercial Property/Equipment Insurance | Asset Protection Expectation | Damage or loss of storage facilities, tools, office property | Your storage facility, trucks, packing tools, and equipment all need protection from fire, theft or vandalism. |
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Workers’ Comp Insurance Requirements for Moving Businesses
Moving companies must carry workers' comp insurance in most states once they hire their first employee. New York mandates coverage with just one part-time worker, while Florida allows moving businesses to hire up to four employees before requiring coverage.
Skipping workers' comp coverage puts your moving business at serious risk of hefty fines and forced closure. The upside is that many insurers provide affordable workers' compensation policies specifically designed for moving companies, protecting both your employees and your business investment.
Commercial Auto Insurance Requirements for Moving Businesses
Moving businesses must carry commercial auto insurance when they own vehicles in every state except New Hampshire. Personal auto policies won't cover accidents while hauling furniture, moving equipment, or packing supplies to job sites. This leaves you paying repair costs and potential lawsuits from your own pocket. You'll also need hired and non-owned auto coverage when employees drive their personal cars between moving jobs.
General Liability Insurance Requirements for Moving Businesses
Moving companies aren't legally required to carry general liability insurance, but most commercial clients won't work with you without it. Property managers and landlords typically demand proof of coverage before approving contracts or lease agreements. This insurance opens doors to profitable commercial moves at office buildings and medical facilities, rather than limiting your business to basic residential jobs.
Professional Liability (E&O) Insurance Requirements for Moving Businesses
Moving companies aren't legally required to carry professional liability insurance, but it protects against costly service error claims. The client might sue for replacement costs and business interruption if your crew damages expensive office equipment during a corporate move. Many clients, like hospitals and office buildings, require proof of this coverage before signing moving contracts, making it essential for business growth.
Commercial Umbrella Insurance Requirements for Moving Businesses
Large corporate clients often require moving companies to carry liability coverage beyond the standard $2 million limit. Commercial umbrella insurance activates when claims exceed your primary policy limits, such as accidentally damaging expensive equipment across multiple office floors during a corporate relocation. This additional coverage helps moving businesses secure profitable contracts with high-end commercial clients who demand extra protection.
Bonding Requirements for Moving Businesses
Moving companies aren't legally required to carry bonds, but commercial clients often demand them before signing contracts. Performance bonds guarantee you'll complete the job as agreed, while fidelity bonds protect clients from employee theft or damage. Banks, medical facilities and law firms require both bond types before allowing movers access to their properties.
What Type of Insurance Is Best for Moving Businesses?
Moving businesses require three essential insurance types to operate safely: general liability coverage, commercial auto insurance for your vehicles and workers' compensation (when you have employees). These baseline protections are non-negotiable. Additional coverage depends on your specific moving services and your business's unique risks.
Local/Intra‑City Moving | Cargo insurance, bailee’s liability | Even short moves carry risk: furniture or electronics can be damaged during transit or handling, and clients expect coverage. |
Long‑Distance/Interstate Moving | FMCSA-required liability, full‑value protection, released value | |
Specialty/High‑Value Moves | Valuation endorsement, fine arts coverage | When clients move high‑value items like pianos or artwork, basic cargo coverage is often inadequate; you’ll need tailored coverage for high‑value goods. |
Storage & Warehousing Services (by the mover) | Bailee’s liability, property insurance for warehouse | If you store client belongings, you must cover damages in storage or handling, and protect your warehouse assets too. |
Packing/Crating Services | Professional liability, inland marine, tools & equipment coverage | Mistakes in packing can damage goods. Tools and crating materials also need coverage when transported or stored. |
Disclaimer
Every type of moving business has unique risks, so discuss your coverage needs with licensed insurance professionals who can help you find the right combination.
Other Coverage Type Considerations
Basic insurance requirements keep your moving business legally compliant but leave you exposed to everyday operational risks. Clients expect comprehensive protection from professional moving companies. Several types of business insurance can fill these critical gaps:
Cargo Insurance
Protects customers' belongings while in your care during transport and storage. Standard commercial auto coverage only protects your vehicle, not the items you're moving. This coverage handles claims when furniture or personal items are damaged, lost or stolen during the move.
Inland Marine Insurance
Covers your moving equipment, dollies, straps and tools when used off your business premises. Since most moving work happens at client locations, this protection ensures theft or damage to your gear doesn't halt operations or force expensive replacements.
Tools and Equipment Insurance
Standard business policies often exclude tools once they leave your premises. This policy protects against equipment damage, theft or loss while in use or in transit between job sites.
Storage Facility Coverage
If you offer temporary storage services, this protects customer belongings in your warehouse or storage units. It covers damage from fire, theft, water damage or other covered perils while items are in your facility awaiting final delivery.
Business Interruption Coverage
Moving businesses face seasonal slowdowns and equipment-dependent operations. This coverage replaces lost income when operations pause due to truck breakdowns, facility damage or other covered events that prevent you from completing scheduled moves.
Professional Liability Insurance
Covers claims when customers allege your moving services caused financial harm beyond physical damage. For example, if a delayed move causes a client to lose their new home purchase, this policy helps cover legal costs and potential settlements.
Cyber Liability Coverage
Moving companies collect customer addresses, contact information and often payment data. If this information is stolen or exposed, cyber coverage helps with legal defense, notification costs and potential fines from data breaches.
How to Get Business Insurance for Moving Companies
Getting business insurance for moving companies involves distinct obstacles that other businesses don't encounter:
- 1
Assess Your Risk Levels
Moving companies face varied risks depending on the services offered. Local residential moves carry different liability than long-distance commercial relocations or specialty item transport. Heavy furniture, fragile items and valuable cargo increase your exposure. Insurance companies price policies based on these risk categories, so understanding your service mix helps determine coverage needs and costs.
- 2
Match Coverage to Operations
Your business activities determine required insurance types. Moving trucks require commercial auto coverage, while employees need workers' compensation protection. Handling client property demands general liability insurance and storing items may require warehouse coverage. Create a checklist of all services to ensure you meet legal requirements and avoid coverage gaps.
- 3
Meet Client Insurance Demands
Commercial clients require certificates of insurance showing $1 million to $2 million in liability coverage. Many contracts demand additional insured status, naming the client on your policy. Residential customers usually have fewer requirements, but adequate coverage protects your business. Review contract language carefully to understand specific insurance obligations before bidding.
- 4
Choose Industry-Experienced Insurers
Work with insurance providers who understand moving company risks like cargo damage, employee injuries and property access issues. These insurers offer specialized coverage packages and know which endorsements are essential. They can also provide competitive pricing because they understand your risk profile rather than making conservative assumptions.
- 5
Secure Documentation Early
Request certificates of insurance from your provider before submitting bids or proposals. Having proof of coverage ready speeds up contract approvals and demonstrates professionalism to potential clients. Some jobs require additional insured endorsements, which can take time to process. Preparation helps you compete for higher-value contracts that require insurance verification.
- 6
Review Policies Annually
Your insurance needs change as your moving business grows. Adding employees triggers new workers' compensation requirements, while expanding service areas affects commercial auto coverage. New equipment or storage facilities require additional protection. Annual policy reviews help you stay compliant, avoid audit surprises, and ensure adequate coverage without overpaying for unnecessary protection.
Insurance Requirements for Moving Business: Bottom Line
Moving business insurance comes down to three factors: legal requirements, client demands and your specific risks. Workers' comp and commercial auto coverage are required in most states when you have employees or business vehicles. General liability and bonding help you land better contracts and compete with established companies. Successful moving business owners get affordable coverage by classifying their equipment properly, comparing multiple insurers and partnering with providers who understand the moving industry's unique challenges.
Moving Company Insurance Requirements: FAQ
Moving company insurance requirements confuse many business owners. These frequently asked questions address the most common coverage concerns:
How much does moving business insurance cost?
Moving business insurance costs vary based on your location, services and coverage needs. Your premium depends on factors like employee count, equipment value and claims history. Workers' compensation requirements differ by state, according to MoneyGeek's study. General liability coverage helps secure commercial contracts and protects against customer property damage claims.
Do I need insurance if I'm a solo moving business owner?
Solo moving business owners aren't legally required to carry workers' compensation insurance since they have no employees. General liability insurance remains essential for securing commercial contracts. Most businesses and property managers require proof of liability coverage before hiring moving services, making this insurance crucial for your business growth and profitability.
What's the difference between bonding and insurance for moving businesses?
Insurance protects moving companies from accidents, property damage and liability claims during relocations. Bonds guarantee contract fulfillment and protect clients from employee theft or dishonesty. Most commercial moving contracts require both coverages, as "bonded and insured" status demonstrates financial responsibility and trustworthiness to potential clients.
Which states don't require workers' compensation for moving businesses?
Only Texas and South Dakota don't require workers' compensation for moving companies. Every other state mandates coverage once you hire employees, though requirements differ. California requires it immediately with your first employee, while Tennessee allows up to five employees before coverage becomes mandatory for moving businesses.
Can I use personal auto insurance for my moving business?
Personal auto insurance doesn't cover business activities, leaving moving companies unprotected during work-related driving. Moving businesses regularly transport equipment, drive between job sites and haul supplies. These activities require commercial auto coverage to ensure claims get approved when accidents happen during business operations.
What insurance do moving clients typically require in contracts?
Moving companies need general liability insurance with $1 million to $2 million coverage limits in most commercial contracts. Clients regularly request certificates of insurance and additional insured endorsements. Many contracts also require cargo insurance to protect client belongings and commercial auto coverage for moving vehicles.
What happens if I operate my moving business without the required insurance?
Operating without required insurance puts your moving business at serious risk. You'll face hefty fines and potential shutdowns without workers' compensation coverage. Commercial auto insurance protects you from paying accident costs out of pocket when business vehicles are involved. Missing general liability coverage blocks access to profitable commercial contracts since most businesses require proof of coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Florida Division of Workers' Compensation, Bureau of Compliance. "Coverage Requirements." Accessed October 17, 2025.
- New Hampshire Insurance Department. "New Hampshire 2022 Automobile Insurance Guide." Accessed October 17, 2025.
- New York State Workers' Compensation Board. "Workers' Compensation Coverage Requirements.." Accessed October 17, 2025.
- South Dakota Department of Labor and Regulation. "Workers' Compensation." Accessed October 17, 2025.
- Texas Department of Insurance. "Workers' Compensation Insurance Guide." Accessed October 17, 2025.