Moving Company Insurance Requirements | FMCSA & State Rules

Quick Answer: What Insurance Does a Moving Company Need?

Moving companies are required to carry specific liability coverage under federal law if they operate across state lines — and most states impose their own requirements for intrastate movers. Here's the baseline:

Note: This guide covers auto and liability insurance requirements for moving companies. If you are looking for information about moving service areas or transit times, visit your moving company's website directly.

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Federal vs. State Requirements

Moving company insurance requirements split into two tracks depending on whether you move goods across state lines.

Interstate Movers (Crossing State Lines)

Interstate movers are regulated by the Federal Motor Carrier Safety Administration (FMCSA). Requirements are non-negotiable:

FMCSA registration: All interstate movers must obtain a USDOT number and, if operating for hire, an MC (Motor Carrier) number.

Auto Liability minimums:

Liability to the customer: by default, an interstate mover is liable for the replacement value of household goods lost or damaged (49 CFR 375.201). A customer can waive that in writing and accept a much lower released rate per pound, set by the Surface Transportation Board.

Cargo security: FMCSA requires interstate household goods carriers to file cargo insurance (Form BMC-34) or a bond of at least $5,000 per vehicle and $10,000 per occurrence (49 CFR 387.303(c)). The $75,000 surety bond (BMC-84) or trust fund (BMC-85) applies to household goods brokers, not to the moving company that hauls the goods.

Intrastate Movers (Within One State)

For moves within a single state, requirements are set by each state's PUC (Public Utilities Commission), DMV, or state DOT. These vary significantly:

Most states require registration with the relevant agency before accepting intrastate moves — and proof of insurance is required at registration.

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Types of Insurance Moving Companies Need

1. Commercial Auto / Truck Liability

The largest exposure for any moving company. Moving trucks — especially large box trucks and semi-trucks — can cause catastrophic accidents.

Minimum limits by truck type:

Average cost: $5,000–$12,000 per truck per year depending on vehicle size, driving record, and routes.

2. Cargo Insurance

Protects the customer's belongings while in transit. Distinct from auto liability:

Coverage types:

• Per-occurrence: Covers all items damaged in one incident
• Per-item: Covers individual items up to a stated value
• Full replacement value: Covers repair or replacement cost (not depreciated value)

Minimum cargo limits: FMCSA requires cargo security of at least $5,000 per vehicle and $10,000 per occurrence for interstate household goods carriers. Commercial cargo policies are usually written well above that.

Average cost: $1,500–$4,000 per year for a small fleet.

3. General Liability Insurance

Covers non-cargo, non-auto incidents:

• Customer injury at pickup or delivery location
• Property damage to a home during a move (scratched floors, broken doorframes)
• Third-party bodily injury at the job site

This is separate from cargo insurance. If your crew drops a heavy piece of furniture and cracks a hardwood floor, that's a GL claim — not cargo.

Typical limits: $500,000–$1,000,000 per occurrence.

Average cost: $1,200–$3,000 per year.

4. Workers' Compensation

Moving is physically demanding and injury-prone. Workers' comp is required in virtually every state once you have employees.

Common moving industry injuries:

• Back and spinal injuries from lifting
• Slips and falls (stairs, wet surfaces, uneven ground)
• Crush injuries from heavy furniture
• Hand and wrist injuries from straps and equipment
• Heat exhaustion during summer moves

Classification codes for moving workers carry high injury risk ratings, making workers' comp premiums among the higher in transportation:

Average cost: $5,000–$15,000 per employee annually depending on state.

5. Surety Bond

FMCSA requirement: the federal bond or trust requirement ($75,000, Form BMC-84 or BMC-85) applies to brokers and freight forwarders, not to movers that operate their own trucks. Movers file cargo security instead (see above).

State requirements: Many states require additional bonds for intrastate movers. Texas, for example, requires a bond for state registration.

Cost: depends on the bond amount your state sets and your credit.

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Valuation Options for Customers (Interstate Moves)

Interstate movers offer two levels of liability, and full value is the default (49 CFR 375.201):

The difference matters enormously in claims: under a per-pound released rate, a light but valuable item such as a laptop is covered for a small fraction of its value. Moving companies that don't clearly explain this distinction face regulatory complaints and lawsuits.

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State Licensing and Insurance by State

States with Specific Moving Company Regulations

Key Points

• Operating without proper state registration can result in fines of $1,000–$10,000 per violation
• Some states require movers to post their license number in advertisements
• Operating as an interstate mover without FMCSA registration is a federal violation

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Who Requires Proof of Insurance?

Federal and state regulators: Required at registration and renewal.

Customers: Increasingly savvy customers request certificates of insurance before scheduling a move. Some ask to be named as additional insured for the move date.

Real estate and apartment management: Many property managers require proof of moving company insurance before allowing a move in or out of a building.

Military and corporate relocation programs: Government and corporate moving contracts typically require higher limits — often $2,000,000+ auto liability.

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Frequently Asked Questions

Is moving company insurance required by law?

For interstate movers, yes — FMCSA mandates auto liability ($750,000 for vehicles of 10,001 lbs or more; $300,000 if the fleet has only smaller vehicles), cargo security, and full-value liability to the customer unless waived. For intrastate movers, state-level regulations apply and most states require auto liability and cargo coverage to register.

What's the difference between cargo insurance and liability insurance for movers?

Auto liability covers damage you cause to other vehicles and people on the road. Cargo insurance covers your customer's belongings if damaged during the move. General liability covers property damage at pickup and delivery locations that isn't caused by the truck.

How much does moving company insurance cost per year?

A small local mover with one truck and two employees can expect: auto liability ($5,000–$8,000) + cargo ($1,500–$2,500) + GL ($1,200–$2,000) + workers' comp ($5,000–$10,000) + bond ($200–$300) = $12,900–$22,800/year in total insurance costs.

Do I need a USDOT number to get moving company insurance?

For interstate moves, yes — FMCSA registration (USDOT + MC number) comes first, and your insurer then files the BMC-91 (liability) and BMC-34 (cargo) certificates with FMCSA. For intrastate-only movers, requirements vary by state.

What is the MCS-90 endorsement?

The MCS-90 is a federal endorsement added to your auto policy. It guarantees the federally required public-liability protection and is kept at your principal place of business as proof of financial responsibility (49 CFR 387.7(d)). What your insurer files with FMCSA to activate your authority is the BMC-91 or BMC-91X certificate.

Can customers sue me if their belongings are damaged?

Yes. By default an interstate mover is liable for the replacement value of lost or damaged goods; if the customer waived that in writing for a released rate, the settlement can be far below actual value. Clear documentation before and after the move reduces dispute risk.

Does personal auto insurance cover moving trucks I rent?

No. Rented commercial moving trucks require commercial coverage. Some credit card rental coverage also excludes commercial vehicles. Verify with the rental company what liability coverage is included and whether you need a non-owned/hired auto endorsement.

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Key Takeaways

• Interstate movers must register with FMCSA and carry at least $750,000 auto liability ($300,000 for a fleet of only small vehicles)
• Cargo security of $5,000 per vehicle / $10,000 per occurrence is federally required for interstate household goods carriers; the $75,000 bond applies to brokers
• Cargo insurance protects customer belongings — separate from auto liability
• General liability covers property damage at pickup and delivery locations
• Workers' comp is legally required in nearly every state with employees
• Total annual costs for a small mover: $12,900–$22,800
• State PUC/DOT registration is required for intrastate movers in most states

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Important Disclaimer

This guide provides general information about insurance requirements for moving companies based on publicly available sources. This is not legal advice. Federal and state requirements change, and individual circumstances vary.

Always verify current requirements with the FMCSA, your state's transportation or public utilities commission, and consult with a licensed insurance professional experienced in commercial transportation coverage.

Last verified: April 2026

Sources: Federal Motor Carrier Safety Administration (FMCSA), California CPUC, Texas Department of Motor Vehicles (TxDMV), Florida FDACS, American Moving and Storage Association (AMSA)