With the highest proportion of inbound moves in Idaho, South Carolina, Oregon, South Dakota, and Arizona, operating a moving company in these states can be highly profitable. However, investing in insurance can help you protect valuable cargo during transport. This is because loading and unloading goods for your clients carry significant risks.
The amount of money companies typically spend on trucking insurance can vary significantly across industries and states. On average, cargo insurance usually ranges in cost between $800 and $2,000 on a monthly basis. Based on various factors such as the type of cargo and the number of moving vans you own, this figure can change.
Before transporting household goods across state lines, businesses need to register with the United States Department of Transportation for a DOT number. They should also obtain several forms of insurance, such as cargo insurance. Cargo insurance minimums are at $5,000 per vehicle or $10,000 per occurrence.
Typically, companies are also required to pay a minimum of 60 cents per pound of each household possession wad damaged. For instance, if a table weighing 180 lb was damaged during transit, you owe the owners a minimum of ($0.60 x 180 lbs) = $108. However, some states may require you to pay more than this amount.
Because of this, it is best to invest in enough cargo insurance for your movers and consult insurance laws in the states you plan to operate in.
If you want to learn how to lower your trucking insurance costs, check out the rest of Assured Standard!
Arthur started Assured Standard after seeing his sister struggle with finding insurance policies for her business. Thanks to his background in business administration, he knows exactly what small and big businesses need to keep operations running.