Business insurance is incredibly important for any type of business. In fact, the federal government requires that any business which has employees must have at “least workers’ compensation, unemployment, and disability insurance”. This varies by state but some states will require other forms of insurance on top of these types. Business insurance can protect your business from the unexpected and ensure that your business stays afloat even in the worst case scenario. This is particularly important for moving companies as there are many risks involved with moving other people’s belongings. These risks can all be mitigated significantly by the correct types of insurance.
General Liability Insurance
This is the most common and also the most comprehensive type of insurance available for businesses. General liability insurance will protect your business from the following risks: damage to property, personal injury, medical bills, advertising and personal injury and legal bills. This is not an exhaustive list but it gives a good indication of the type of liabilities for which your business will be insured. There is no legal requirement to carry general liability insurance but operating your business without it is very risky. A lawsuit could cost your moving business hundreds of thousands of dollars and potentially send your business into bankruptcy. General liability insurance will protect your business in a case like this and allow your business to continue operating as it had before.
An example of a situation where general liability insurance will come in handy for a moving company is accidental damage to property. Your movers are carrying a heavy statue out of a house when it falls and breaks not only itself but the tiling on the floor. General liability insurance would likely cover an incident such as this for both the property damage to the item itself and to the home of your customer.
The average moving company in America spends between $450 to $1000 per year for $1 million worth of general liability insurance. Factors which will determine how much your policy will be include: the location of your business, the number of employees of your business and your business’s deductible.
Commercial Auto Insurance
Commercial auto insurance is required by some states by law for any commercial vehicle. This means that each vehicle your business owns will need to be insured with a commercial auto insurance policy. It is imperative to select adequate cover for your moving vehicles as moving trucks and vans cost more than sedans and hatchbacks. Your vehicle may not be covered for its full value if you are diligent about insuring them for their replacement value. This type of insurance may also be purchased through a package deal which includes other types of insurance as well. It is recommended to speak to your broker to ensure you get the best deal on your insurance policy.
Workers Compensation Insurance
As mentioned in the introduction, this type of insurance is required by law for any company which has employees. Workers compensation insurance will cover injuries which occur during work. This may include injuries which occur while moving heavy items or carrying items up or down flights of stairs. Every one of your employees must be covered by this type of insurance even if they only work part-time. Not doing this can leave your business exposed to unnecessary risk as well as potential legal penalties.
Commercial Property Insurance
This may not be necessary for every moving business but if your business owns any property or any expensive equipment commercial property insurance will cover it. This type of insurance protects buildings and the things which are stored within them. For more information on insurance for moving companies consult The Really Useful Information (TRUiC)’s website as they have many helpful resources available for free.
If you own a moving company certain types of insurance will be absolutely indispensable to your operation. These aforementioned types of insurance will protect your company from risk and will allow your business to be more robust in times of trouble. Lawsuits, personal injuries and property damage will no longer be things which could potentially put your company out of business with the right insurance policies.