Moving Company Insurance: Cargo, Auto and Liability Coverage
How insurance works for small moving companies: cargo coverage, valuation options for customers' goods, commercial auto, workers' comp and federal rules for interstate moves.
Moving companies carry their customers' most personal possessions in large trucks, with crews lifting heavy items all day. That creates three big areas of risk: the goods, the vehicles and the people. Small movers need a plan for each.
Customers' belongings: cargo coverage and valuation
Motor truck cargo coverage is designed to protect goods in your care while being transported, subject to its terms and exclusions. Check limits per truck, exclusions for high-value items, and whether goods in storage are covered.
Separately, movers agree with customers on valuation, which sets the mover's liability for loss or damage. For interstate household goods moves, federal rules require movers to offer options including full value protection and a lower-cost released value option with much more limited liability, and to explain these to customers. Moves within a single state follow that state's rules.
Commercial auto
Box trucks and vans need commercial auto insurance. Larger trucks and interstate operations can also bring federal and state registration and minimum insurance requirements. If you rent trucks, check how liability and physical damage are handled.
Workers' compensation
Moving is among the more physically demanding jobs: back injuries, strains, crushed fingers and falls on stairs are common. Workers' comp is often a significant expense, and classifying crews correctly matters.
General liability
General liability covers damage to the property you're working in, such as walls, door frames and floors, and injuries to third parties. It usually doesn't cover the goods you're moving, which is cargo coverage's job.
Coverage summary
| Risk | Coverage |
|---|---|
| Damaged or lost customer goods | Cargo coverage plus contractual valuation |
| Truck accidents | Commercial auto |
| Damaged walls or floors at the home | General liability |
| Crew injuries | Workers' comp |
| Severe accidents | Umbrella |
Reducing claims
- Use inventory sheets noting existing damage, signed by the customer.
- Protect floors, banisters and door frames.
- Train crews on lifting technique and use dollies and straps.
- Explain valuation options clearly in writing.
Frequently asked questions
What is the difference between valuation and insurance for a move?
Valuation is the mover's level of liability for a customer's goods, as agreed in the moving contract. Separate insurance policies may also exist. For interstate household moves, movers must offer specific valuation options under federal rules.
Does commercial auto insurance cover customers' belongings in my truck?
Usually not. Auto insurance covers the vehicle and liability from driving, while goods being transported are generally covered by cargo coverage.
Do local movers follow the same rules as interstate movers?
Not necessarily. Interstate household goods moves are regulated federally, while moves within a single state are regulated by that state, and requirements vary.