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5 Reasons Why Your Moving Company Needs Business Insurance


Moving companies serve the important role of helping businesses and individuals relocate to a new space with minimal hassle or effort required on their part. Your own moving company may stay busy on a regular basis, but it is important to understand the dangers and risks that your team faces when completing any moving project.

For example, if one of your customers sues your business for damages to their property, your business could be negatively affected in many ways. You may have to face a lengthy, expensive lawsuit, grievances with your employees and poor word-of-mouth advertising.

Because you need to prepare your business for any type of potentially damaging situation that may develop, you need to learn more about the different ways that a commercial insurance policy could protect your business.

1. Damaged Customer Property

Even when you hire the most skilled and conscientious workers, the reality is that accidents and mishaps can and will happen. For example, a box containing very valuable items may be dropped. Your team may scrape furniture against a wall or even puncture a hole in a wall.

Liability insurance can pay for any damages that you and your team cause. More than that, general liability insurance is a selling point to your customers. It gives the impression that your business is credible, and it shows your customers that you have an effective and legitimate way to pay for any damages that your team causes while moving their belongings.

Because of how critical this selling point is, many moving companies advertise that they are licensed, bonded and insured on their work vehicles and marketing materials.

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2. Injured Employees

You may do your best to hire well-trained, experienced and strong moving professionals, but any employee can become injured while on the job. You need to buy worker’s compensation insurance to pay for any accident-related medical bills that your company may otherwise be responsible for. This type of insurance can also pay for the lost wages of an employee who is recovering from injuries.

Remember that this coverage type may be required for businesses in some states, and your business could face both civil and criminal penalties if you fail to carry the required minimum amount of coverage. More than that, the coverage could pay for any related legal expenses that your company may otherwise be responsible for. As you can see, the cost of insurance may be much more affordable than having to pay for these various expenses out of your own funds.

3. Natural Disaster

Your moving business also could be exposed to financial loss if a natural disaster strikes. These disasters may include severe storms, flooding, lightning-related fires, and more. Property and casualty insurance, which is also known as P&C coverage, may pay for any losses related to damaged or destroyed business property and equipment.

However, your moving business may need to be closed for a period of time if these types of events cause catastrophic damage. You can receive compensation for your lost revenue during this period of time through a business owner’s policy.

4. Breach of Contract

Many moving company owners do not think about losses related to breach of contract claims, but this type of claim may be more common than you may think. A breach of contract claim occurs when a client alleges that you did not follow through on the terms of your contract.

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Coverage for a breach of contract lawsuit may pay for related legal expenses as well as any damages that the court requires you to pay. Remember that the penalties and fees could be damaging or even severely detrimental to your business if you do not have a reasonable way to pay for these expenses.

5. Damaged Commercial Vehicles

Your commercial vehicles are necessary for the daily operations of your business. However, these vehicles may get damaged or stolen. More than that, they could be involved in an accident that exposes your business to a liability issue. Liability auto insurance is usually required by all states, but you may also need to add collision or comprehensive insurance to your policy for added benefit.

It is impossible for a moving company owner to understand what challenges may occur in the future, so it is important to be prepared for all possible situations. From natural disasters to on-the-job mishaps and more, insurance coverage is available to help you prepare for what the future holds.

Remember that no business is immune from these events, and they could happen at any time. With this in mind, now is a wonderful time to review your coverage and to determine if you need to enhance your insurance portfolio for added protection.

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