Are you thinking of opening a moving business? While you are in the planning stages, be sure to
consider the type of insurance coverage you will need.
In the early planning stage of your business, you will need to contact an insurance agent who is knowledgeable about
your area of operation. Ask owners of similar businesses to recommend agents. Second, you will need to discuss the
details of your business, its exposures and the different types of insurance that are available to protect it. Your agent
should be able to tailor coverage that is specific to your company.
Insurance requirements for moving companies stem from both federal and state regulations. These regulations ensure
that a company has the amount of insurance needed to protect the owner in the event of a loss. Federal laws pertain to
moving companies that transport consumer goods between states.
In general, moving companies have exposure to two categories of risks: property damage of company-owned assets,
and bodily injury or property damage of customer assets. The Federal Motor Carrier Safety Administration, which
operates under the U.S. Department of Transportation, has primary regulatory authority for the interstate moving
industry. In addition, state and local governments enact their own statutes to supervise this activity.
As the owner of a moving company, you may offer your customers two choices of liability coverage.
1. Full protection allows your customers to fully protect their property and makes you liable for the replacement
value of damaged or lost property for 100 percent of the shipment. Your customers pay a considerable
amount for full protection coverage but can reduce the cost via their deductible.
2. Released value coverage means that when property is damaged or destroyed, your company can do one of
three things: repair the item, replace the item with a like good, or make a cash settlement for the product’s
cost or present market value.
INSURANCE COVERAGE FOR A MOVING COMPANY
BUSINESS
INSURANCE
MOVER’S CARGO INSURANCE
A mover’s cargo policy provides coverage for furniture
and household goods while in transit.
COMMERCIAL GENERAL LIABILITY INSURANCE
A commercial general liability (CGL) policy provides
coverage to a business for bodily injury, personal injury
and property damage caused by your business operations,
products, advertisements or completed operations. A
CGL policy shields your business from the expenses of
out-of-court settlements, litigation or rulings awarded by
the courts.
COMMERCIAL AUTO LIABILITY INSURANCE
Auto liability insurance provides coverage for bodily injury
and property damage. If your employee accidentally
backs into a customer’s garage door with the company
truck, for example, your business will be protected.
TIME ELEMENT INSURANCE
Time element insurance is an option for companies
that rely on equipment, trucks and machines. It offers
protection in the event of property damage that results in
reduced earnings or increased expenses.
BUSINESS INSURANCE
A business owner policy combines protection for all major
property and liability risks in one insurance package. This
type of policy is usually less expensive than purchasing
separate property and liability coverage.
KEY PERSON INSURANCE
Key person insurance offers protection for the business if
something happens to key partners, employees, owners or
founders of a business. Key person coverage is like a life
or disability insurance product; it will pay a proceed in the
event of the death or disability of a key person.
UMBRELLA LIABILITY INSURANCE
Umbrella liability insurance provides additional liability
protection. It covers claims made against you that might
exceed your insurance policy’s liability limits. Additionally,
it may provide coverage for claims made against you that
are not listed under your regular insurance policies, such
as slander and libel.
BOND
A bond issued by a licensed security company may be
needed when a license or permit is required by federal,
state or local municipalities to ensure that the services
promised by a business are completed according to
regulation. Common types include surety, construction,
commercial, notary and contractor bonds. To determine
whether a bond is needed, check with the licensing or
permitting authority.
The following are examples of insurance coverage that may be important for owners of moving businesses to consider.
You may not need all of these coverages, and some can be bundled as a commercial package policy or business owner’s
policy. A bundled insurance policy could save you money. Work with your agent to ensure you have proper coverage.
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MISSION
The mission of the Department of Insurance,
Securities, and Banking (DISB) is three-fold: (1)
cultivate a regulatory environment that protects
consumers and attracts and retains financial
services firms to the District; (2) empower and
educate residents on financial matters; and (3)
provide financing for District small businesses.
REMEMBER
Insurance gives you the peace of mind to operate
your business knowing it is protected from
accidents, theft, legal matters and natural disasters.
The right policy, or combination of policies, helps
your business overcome a situation that has the
potential to drain your resources and take your
focus away from your operation. Check with a
licensed insurance agent or a licensed insurer to
discuss your business insurance needs.
ONE MORE THING TO KNOW
You can perform an online search to locate an
agent or insurer. Access the insurance licensing
portal on the DISB website or contact our office
to verify whether the agent or insurer is licensed
or authorized to conduct business in the District of
Columbia.
If you have questions about insurance, please call
DISB at 202-727-8000 or visit disb.dc.gov.
