What Kind of Insurance Do Moving Companies Hold—and Are They Liable for Damages?

Moving day can be both exciting and nerve-wracking. You’re packing up your life and trusting a team of movers with your most cherished belongings. But what happens if something gets damaged or goes missing along the way? Let’s unpack the world of moving company insurance and liability, so you know exactly where you stand before the first box is loaded onto the truck.

What Insurance Do Moving Companies Carry?

Most reputable movers in North America are required by law to provide basic insurance coverage, but there’s more to the story. Here’s a closer look at the main types:

• Basic Carrier Liability (Released Value Protection): This is the bare minimum required for interstate moves. It covers your items at about $0.60 per pound per item. For example, if your 100-pound sofa is damaged, you’d receive just $60—even if it’s worth much more.
• Full Value Protection: For an extra fee, you can upgrade to this more robust coverage. If an item is lost, destroyed, or damaged, the mover must either repair it, replace it with something similar, or offer a cash settlement for its current value. This option offers much greater peace of mind, especially if you’re moving valuable items.
• Third-Party Insurance: Some moving companies partner with outside insurers to offer additional coverage. This can be a smart move if you have high-value possessions or want extra security beyond what the mover provides.
• General Liability and Cargo Insurance: These policies protect the moving company itself—covering things like workplace injuries or damage to their vehicles. They don’t always extend to your personal belongings, so it’s important to clarify what’s included.

Are Movers Liable for Damages?

In short: yes, but with important caveats. Here’s what you should keep in mind:

• Coverage is limited unless you upgrade: The basic, legally required insurance is minimal. If you don’t purchase extra protection, any compensation for lost or damaged items will be based on weight, not value.
• Full Value Protection isn’t foolproof: Movers may exclude items you packed yourself, or items of “extraordinary value” (like jewelry or collectibles) unless you declare them ahead of time. Always read the fine print!
• Claims must be filed promptly: If something goes wrong, you’ll need to file a claim—usually within a set time frame after your move. The moving company will review your claim and determine what compensation, if any, you’re entitled to based on your chosen coverage.
• Local vs. long-distance moves: Rules and coverage options can differ depending on whether you’re moving within your state or across state lines. Don’t be afraid to ask your mover for specifics.

How to Protect Yourself When Moving

• Get it in writing: Always ask your moving company to explain all available coverage options—preferably in writing—so you know exactly what you’re getting.
• Consider extra insurance: If you have antiques, artwork, or other valuables, extra coverage is often worth the investment.
• Document everything: Take photos of your belongings before the move and keep a detailed inventory. This makes it easier to prove the condition of your items if you need to file a claim.
• Know your deadlines: If you need to make a claim, act quickly—waiting too long could mean missing out on compensation.

Moving is a big step, but understanding your mover’s insurance and liability policies can help you breathe easier. With the right questions—and the right coverage—you’ll be ready for a smoother, safer move.