A dropped dresser. A gouged hallway in a brand new condo. A helper who hurts their back on the third flight of stairs. A truck that clips a parked car on the way to a job. Every moving company has days like these. Insurance decides whether a bad day stays a bad day or becomes the end of the business.
This guide covers the policies most movers carry, the federal minimums for interstate household goods movers, how state rules differ, how valuation fits in and how to shop. It is written for owners running 1 to 20 trucks and for people about to start.
General information only
This is general information, not insurance, legal or financial advice. Federal figures come from FMCSA and the Code of Federal Regulations as checked in October 2026, and state figures come from our state guides. Confirm everything with a licensed agent or broker and your regulator before you buy.
What insurance does a moving company need?
Most movers carry a stack of policies, not one. Each covers a different kind of loss, and the gaps between them are where small companies get hurt.
1. General liability
General liability covers injuries to people who are not your employees and damage to property that is not being moved. Think of a scraped wall, a cracked door frame or a customer who trips over a dolly. It usually also pays your legal defense. It does not cover your trucks on the road, injuries to your crew or the customer’s belongings. Those need their own policies.
2. Commercial auto liability and physical damage
Commercial auto liability pays for injuries and damage your trucks cause to others. It is the coverage regulators care about most, and often the biggest part of the bill. Physical damage coverage (collision and comprehensive) is separate and pays to repair or replace your own trucks.
Ask about hired and non-owned auto coverage too. It covers trucks you rent and personal cars employees drive for work. A personal auto policy usually excludes paid moving work, so it is not a substitute.
3. Motor truck cargo
Cargo insurance covers customers’ belongings while they are in your care: loading, driving and unloading. When a customer files a damage claim, this is usually the policy that pays. Read the exclusions, especially for boxes the customer packed, electronics, high-value items and goods left on the truck overnight.
4. Workers’ compensation
Moving is hard physical work. Workers’ compensation pays medical bills and lost wages when an employee is hurt on the job. It is run by the states, so the rules on who must be covered differ. New York and California, for example, want proof on file before they license a mover.
5. Umbrella or excess liability
An umbrella policy adds limits on top of your auto and general liability. A serious truck accident can produce claims far above a basic limit, and umbrella coverage is how many movers meet the higher limits that commercial clients and buildings ask for.
6. Inland marine and equipment
Inland marine is an insurance category for property that moves around. For movers it often covers your own equipment, such as dollies, pads, straps and piano boards, wherever it is. Cargo coverage is often written as inland marine too, so expect the term on quotes.
7. Warehouse legal liability for storage
If you store customers’ goods, ask whether your cargo policy covers them in your building, and for how long. Often it is limited. Warehouse legal liability covers your responsibility for customers’ goods in storage, and commercial property coverage protects what you own, such as racks and vaults.
What insurance do federal rules require for interstate movers?
If you move household goods across state lines for pay, the Federal Motor Carrier Safety Administration (FMCSA) sets minimum insurance levels in 49 CFR Part 387. FMCSA will not grant operating authority until the coverage is on file, and your insurance company makes the filing, not you.
$750,000
Federal liability minimum for for-hire household goods trucks rated 10,001 pounds or more
$300,000
Federal liability minimum when every vehicle in the fleet is rated under 10,001 pounds
$5,000
Federal cargo minimum for household goods on any one vehicle
$10,000
Federal cargo minimum for losses at any one time and place
The weight that matters is the gross vehicle weight rating (GVWR), on a label usually in the driver’s door frame. Many moving box trucks are rated 10,001 pounds or more, so most movers plan for $750,000. The $300,000 level applies only when the whole fleet is under 10,001 pounds, such as cargo vans only.
Here is how the filings work:
- Liability filing: your insurer files Form BMC-91 or BMC-91X with FMCSA. A surety bond on Form BMC-82 is the other option.
- Cargo filing: household goods movers also need cargo coverage on file, on Form BMC-34, or a surety bond on Form BMC-83.
- Timing: FMCSA says that if filings are not in within 20 days of your application appearing in the FMCSA Register, it will notify you that the application will be dismissed unless you comply within 60 days.
- Proof at your office: keep proof of coverage, usually the MCS-90 endorsement, at your main place of business. It is public, and you must show it on reasonable request.
- Cancellation: either you or the insurer must give 35 days’ written notice to cancel.
- Staying active: after authority is granted, missing insurance or process agent filings can lead to revocation.
Minimums are a floor, not a target
A $5,000 cargo minimum will not cover one family’s furniture, and under full value protection you can owe the replacement value of everything on the truck, up to the declared value. Ask your agent what limits fit the moves you actually do.
The rest of federal registration, from your USDOT number to your arbitration program, is in our guide to moving company licenses and insurance.
How much insurance do states require for local moves?
Moves that start and end in one state follow that state’s rules, and the amounts vary a lot. Some states set their own minimums and want filings from your insurer. Others have no mover license at all. Three examples from our state guides:
- Texas: TxDMV requires liability coverage of $300,000 for household goods trucks under 26,000 pounds and $500,000 for heavier trucks, plus cargo coverage of $5,000 per vehicle and $10,000 aggregate. Your insurer files the forms with TxDMV, and if a filing lapses, your TxDMV number goes inactive. See the Texas guide.
- New York: NYSDOT requires $100,000 per person and $300,000 per accident for injuries, $50,000 for property damage, and cargo coverage of $5,000 per vehicle and $10,000 per occurrence. Workers’ compensation and disability benefits coverage must be on file, filings must come from an insurer authorized in New York, and NYSDOT does not accept ACORD certificates as proof. See the New York guide.
- California: BHGS requires $250,000 per person, $500,000 per accident and $100,000 for property damage, or a $600,000 combined single limit. It also requires $20,000 in cargo insurance, workers’ compensation on file and a $2,000 C.O.D. surety bond before you handle collect on delivery shipments. See the California guide.
If you work in more than one state, you meet each state’s rules, plus the federal rules for any interstate job. Our state guides list the regulator, insurance rules and official sources for every state.
How is valuation different from moving insurance?
Customers say “insurance” when they mean valuation, and many movers do too. Mixing them up leads to angry claims.
- Valuation is the level of liability you, the mover, accept for the customer’s goods. On interstate moves, federal rules make full value protection the default: you are liable for the replacement value of lost or damaged goods, up to the declared value of the shipment. Depending on your tariff, you can repair, replace or pay. If the customer does not list items worth more than $100 per pound in writing, your liability for those items can be limited.
- Released value is the lower option. The customer waives full value protection in writing, and your liability is limited to the per-pound amount in the Surface Transportation Board’s released rates order, which can be adjusted each year. It costs nothing extra, but pays very little.
- Your cargo insurance pays you back when you owe a customer under the valuation they chose. It protects your business, not the customer directly.
- Separate moving insurance is a policy a customer can buy from an independent insurer. If you sell it, the bill of lading must show the coverage and premium, and failing to give the customer a copy of the policy can add to your liability.
The real risk is a gap. If a customer declares a high value and your cargo limit is lower, you may owe the difference yourself. Match cargo limits to the declared values you usually see, and explain the options plainly on every estimate. Never promise that “everything is insured.” New York bars movers from advertising that all loads are insured.
Local moves follow state liability rules. Texas, for example, requires you and the customer to agree on your liability in writing before the move. Unfamiliar terms are explained in the moving glossary.
What is a moving company bond, and what is a certificate of insurance?
Two words confuse new movers more than most: bond and certificate. Neither one is an insurance policy.
8. Moving company bonds
A surety bond is a guarantee. A bonding company promises a regulator or customer that you will meet an obligation, and if it pays a claim, you must pay it back. A covered insurance claim is not paid back. The bonds movers meet most often:
- State bonds: some states require one. California, for example, requires a $2,000 C.O.D. surety bond before a mover handles collect on delivery shipments.
- Broker bonds: if you book interstate moves and hand them to other carriers, you are acting as a broker. That needs separate broker authority and, under federal rules, a $75,000 surety bond or trust fund, filed on Form BMC-84 or BMC-85.
- Local bonds: some cities and counties ask for a license or permit bond.
- “Bonded” crews: customers who ask if you are bonded usually mean protection against employee theft, handled by a crime policy or employee dishonesty bond.
9. Certificates of insurance for buildings
A certificate of insurance (COI) is a one-page summary from your agent that proves your policies and limits. Apartment buildings, condos and offices often require one before your crew can use the elevator or loading dock. The building is listed as certificate holder, and many also ask to be an additional insured with set minimum limits.
A certificate only reports coverage. It does not add any. If a building wants additional insured status or a waiver of subrogation, your policy needs the matching endorsement, so check with your agent well before move day. Certificates are also not regulatory filings, which is why New York does not accept them as proof.
Ask for the building’s requirements at booking
When a customer books, ask for the building’s certificate requirements and send them to your agent the same day. A missing certificate can leave your crew waiting in the lobby.
What affects the price, and how do you shop for moving insurance?
We do not quote prices, because premiums depend on too many local factors. Here is what insurers look at:
- Drivers: age, experience and driving records.
- Claims history: past claims, shown on reports called loss runs.
- Trucks: number, size, value, age and where they park at night.
- Where you drive: one metro area or many states.
- Payroll and job type: the main drivers of workers’ compensation cost, under state rules.
- Storage: whether you hold customers’ goods, and how the building is protected.
- Safety record: inspections and crashes tracked under your USDOT number.
- Limits and deductibles: higher limits cost more, and a higher deductible usually lowers the premium.
Insurance is a real part of each crew hour. The crew cost calculator shows how it flows into your hourly cost, and the pricing guide shows how to build a price that covers it.
When you are ready to buy, work through these steps in order:
- Write down how you work. Local or interstate, which states, trucks and their GVWR, drivers and helpers, expected payroll and revenue, and any storage.
- Gather documents. USDOT and state numbers, truck VINs, driver license numbers and loss runs from any past insurer.
- Find an agent or broker who already insures movers. The U.S. Small Business Administration suggests a licensed agent and shopping around, because prices and benefits vary.
- Compare quotes line by line. Same limits, deductibles and coverages, then read the exclusions. The cheapest quote often leaves something out.
- Confirm the filings. Make sure the insurer can file your federal and state forms.
- Set up certificates. Agree how you request them and how fast they come back.
- Calendar your renewals. Review coverage yearly and whenever you add a truck, driver, state or storage.
Questions worth asking a broker before you sign:
- How many moving companies do you insure today?
- What does cargo exclude, and are goods in my warehouse covered?
- Does my auto policy cover rented trucks and employees’ own cars used for work?
- Are part-time and seasonal helpers covered by workers’ compensation?
- Can you add buildings as additional insureds, and how fast?
- How fast must I report a claim, even one under my deductible?
What are the most common moving company insurance mistakes?
Most insurance trouble at small movers comes from a few fixable habits.
10. Handling claims without telling the insurer
Paying a small claim yourself can seem simpler. But most policies require prompt notice of incidents that could become claims, and if a “small” claim grows, late notice can put coverage at risk. Ask your agent how to handle claims under your deductible, and log every claim and how you settled it.
11. Uninsured day labor
Paying extra helpers in cash on busy days is common, and risky. If a helper you call a contractor gets hurt carrying a sofa, you may have no workers’ compensation coverage for them. The IRS looks at the whole relationship, including who controls what work is done and how. Helpers who work your schedule, follow your crew lead and use your equipment often look like employees. See our guide to hiring for moving companies.
12. Rented trucks with the wrong coverage
Renting a truck for a busy weekend is normal. Driving it without the right coverage is not. Check that your auto policy covers hired vehicles, and read the rental contract, since some consumer rentals are not meant for paid moving work. Our guide to starting a moving company compares buying, leasing and renting.
13. Letting a filing lapse
If a policy cancels, your regulator finds out. FMCSA can start revoking interstate authority when filings are missing, and in Texas a lapsed filing makes your TxDMV number inactive. Pay on time, and ask your agent to flag any cancellation notice at once.
14. Limits that do not match your work
Minimums are the least a regulator accepts, not what a household is worth. Match cargo limits to the declared values you see, carry the limits buildings and clients ask for, and update coverage as you grow.
Keep a one-page insurance sheet
List every policy with its limits, deductible, renewal date and claims number. Give a copy to every crew lead with simple steps for damage or injury: take photos, write down what happened, have the customer sign it and call the office the same day.