Insurance and Licensing Basics for Moving Companies

Moving is one of the more heavily regulated trades covered on this blog, largely because you're taking legal custody of people's entire households. Here's what you actually need to have in place.

Federal registration for interstate moves

If you move household goods across state lines, you need:

• USDOT number — required for any interstate commercial motor carrier
• Motor carrier (MC) authority — specifically required for household goods movers operating interstate, registered through the FMCSA
• Proof of insurance filed with the FMCSA — you can't just carry a policy privately; interstate movers must have it on file with the federal government before operating

Federal rules also require interstate movers to provide customers with the "Ready to Move" brochure and the "Your Rights and Responsibilities When You Move" booklet — this isn't optional paperwork, it's a legal requirement tied to your authority to operate.

State-level licensing for intrastate moves

Moves that stay within one state are regulated at the state level, and requirements vary significantly:

• Some states (California, with its Cal-T number through the CPUC, is a well-known example) have their own registration and insurance filing requirements for intrastate household goods movers
• Other states have lighter requirements or fold moving companies into general business licensing
• Check your specific state's public utilities commission or department of transportation before assuming interstate rules are the only ones that apply — operating intrastate without required state registration carries its own penalties

Cargo insurance — the coverage customers actually care about

Cargo insurance covers customers' belongings while in your care, custody, and control. This is often legally required for household goods movers and is always something customers expect, whether or not they ask about it by name. Make sure your coverage limits are realistic for the value of goods you're likely to be transporting, not just a minimum checkbox amount.

Valuation coverage — distinct from insurance

Separately from your own cargo insurance, federal rules require you to offer customers valuation coverage options: released value (60 cents per pound per item, minimal, no extra charge) and full value protection (real replacement value coverage, at additional cost). This is a legal disclosure requirement for interstate moves, and getting the paperwork and explanation right protects you from disputes.

General liability, commercial auto, and workers' comp

• General liability covers property damage at pickup and delivery locations — a gouged doorframe, damaged flooring, a broken banister
• Commercial auto is required for your trucks; personal auto insurance excludes business use
• Workers' compensation is required in nearly every state with employees, and moving carries genuine injury risk — back and shoulder strains are the most common claims in this trade by a wide margin

Keep your authority and documentation current and accessible

DOT numbers, MC authority, and insurance filings need to stay active and current — lapses can suspend your ability to legally operate. Beyond the legal requirement, customers and corporate relocation partners increasingly ask to see proof of authority and insurance before booking, especially for larger or higher-value moves. Keeping this documentation organized and ready to share quickly, rather than hunting for it when someone asks, is a small operational habit that speeds up deals. ServiQ keeps your business documents alongside your job and customer records, so when a corporate client or a cautious customer asks for proof, you're not digging through a filing cabinet to find it.