What Type of Insurance Do Moving Companies Need?

The summer months tend to be busy for professional residential and commercial movers. Most Canadians looking to relocate their businesses to new properties or move to a new home do so between June and September. 

IBISWorld data states the market size of Canada’s moving industry was worth $1.4 billion in 2023, a 0.5% growth rate increase versus 2022. The Better Business Bureau of Canada also forecasts the moving industry will benefit from increased commercial real estate activity over the next five years. That ought to result in more demand for the services moving companies provide.

For residential and commercial movers who own trucks, it’s crucial to ensure you have a customized moving company insurance policy. This is not just about protecting your assets and reputation, but also about avoiding potential financial losses and legal issues that could arise from unforeseen circumstances. Let’s delve into the reasons why:

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What Liability Risks Do Residential and Commercial Movers Face?

Residential and commercial movers face several liability risks. These risks can lead to financial losses, legal issues, and damage to their reputations. Among the most common risks are:

• Third-Party Property Damage

Accidental damages to your clients’ property may occur during packing, loading, and transporting furniture and other items. Furthermore, client property could be lost or stolen during a move.

• Third-Party Bodily Injuries

Your crew’s work could injure A client or passerby during a move. For example, a client could trip over a moving truck ramp attached to your moving van and suffer an injury that requires medical attention.

• Auto Accidents

Driving any vehicle poses the threat of being involved in a collision or auto accident that can cause damage to vehicles and property and injuries to other motorists, passengers, or pedestrians.  

• Damage to Client Property While in Storage or Transit

Damage to a client’s property is possible while held at a temporary storage facility or while in transit between locations.

• Professional Negligence

Allegations of professional negligence or misconduct could arise and lead to a lawsuit if a client feels your crew acted negligently or if your moving company failed to deliver a service as promised.

What Does Moving Company Insurance Coverage Include?

A comprehensive moving company insurance policy may include the following coverages:

• General liability insurance covers third-party bodily injury and third-party property damage that occur on your commercial premises or during your regular business activities. 

• Cargo insurance covers damages, loss, or theft of your client’s property in your care, custody, and control while in transit or temporarily housed at a third-party storage facility. 

• Commercial auto insurance covers costs following an auto accident involving your moving van. It’s designed to cover third-party bodily injuries or property damage that happens to other drivers if you are at fault and can cover the cost of repairs for damages to your vehicle.

• Inland marine insurance is also called heavy equipment insurance. Moving companies may include it in their policy to complement cargo insurance coverage. Inland marine coverage protects your moving crew’s transportable tools and heavy-duty vehicles from damage caused by fire, water, a natural disaster, theft, and vandalism.

• Professional liability insurance addresses allegations or claims of professional negligence, misconduct, and failure to deliver a service as promised to a client.

• Commercial property insurance protects your moving company’s office, office contents (electronics, furniture, inventory), and storage facility if damaged by unforeseen risks, like a fire, theft, or vandalism.

• Cyber liability insurance helps you recover following a cyber-attack or data breach that compromises your company’s and clients’ confidential information if compromised or stolen. It includes coverage for your website, email, social accounts, cloud storage, and point-of-sale (POS) system if a hacker infiltrates them.

If you have questions about what your moving company’s policy should contain, including what the coverage limits should be and what exclusions are in your policy, don’t hesitate to speak to a licensed Zensurance broker. We’re here to help you navigate the complexities of insurance and ensure you have the right coverage for your business.

How to Get Low-Cost Moving Company Insurance

Over 300,000 Canadian small businesses and independent professionals trust and rely on Zensurance to provide them with the low-cost, customized insurance they need. We can help your moving company too, with a comprehensive moving insurance policy tailored to your specific needs, ensuring your financial security and helping you grow your bottom line.

Fill out our online application for a free quote. Let our experienced brokers shop the market on your behalf to get the coverage you need and answer any questions you have about protecting your assets.