The importance of insurance and licensing when hiring movers

In the business of relocations, there are so many moving companies. Some of them will give you an offer too good to be true. Also, moving companies might come and go, but you want to be sure you will hire a legitimate moving company. That means you ought to find a moving company with proper insurance and licensing. To simplify, you have to know the true meaning of licensed, bonded and insured. Especially before you start looking for a reliable moving company to take care of your possessions on the road. In this article, you’ll read everything you need to know about the importance of insurance and licensing when hiring movers.

Let’s begin with explaining the meaning of insurance and licensing when hiring movers


Every moving company should have a license so it could legally conduct business. Moreover, moving companies need to show off their license number on their website, business cards, or trucks. If you don’t see it anywhere, be careful, because it might mean the business doesn’t have a license. Also, if you want to manage insurance and licensing when hiring movers, you’ll need to know the license number. That way, you’ll be able to look up the moving company and get an idea of any complaints against it. Don’t underestimate the importance of licensing when hiring movers. That could save you a lot of trouble and money to find storage in Hong Kong, as well. So, do your homework, find out the moving company’s license number and check it out.

moving contracts
Two of the most important legal aspects while relocating are insurance and licensing when hiring movers.

Besides the insurance and licensing when hiring movers, you should know the meaning of the term bond

In terms of moving, a bonded business has paid a bonding company to set aside money for potential claims. This money is there in case a customer files a claim. This type of money isn’t in control of anyone within the business. For instance, if an employee steals belongings from the customer, the customer would get the money return with the bond money. You surely understand the importance of being bonded. Especially if you are moving to the UK from Hong Kong. On the other hand, if a moving company isn’t bonded, that isn’t necessarily a deal-breaker. Because most moving companies nowadays use their insurance to cover what `bonded` used to cover.

The meaning and importance of insurance while relocating

You surely already know how insurance works, but maybe not specifically for moving companies. Before you hire a particular mover, you should know what kind of insurance you can expect.

  • First, there is general liability which covers damage to your property. In our opinion, you should find a moving company that has this type of insurance. Also, ask about the general liability coverage, as it varies from company to company.
  • Also, there is a carrier’s liability. This policy will protect your belongings if they get damaged during the move. To clarify, moving companies need to pay a certain amount of money per item damaged. So, if some of your items get damaged during the move, don’t worry. Carrier’s liability will pay for at least a part of the repairs needed.

Why should you pay attention to the importance of insurance and licensing when hiring movers?

Even though it would be easier to sign the deal with the first moving company, that’s not the case. There is much information you should ask around and know, so you don’t get scammed along the way.

A nice website and colorful logos on the vehicles don’t necessarily qualify a moving company as a reliable one. As many of us don’t often move, we are not aware that there are many `fly-by-night` moving companies out there. These fraudulent moving companies are just waiting to take advantage of innocent customers. So, do your research in time and avoid potential moving scams.

Check the history of a moving company you plan to hire

As the internet allows us to do thorough research, use it by all means. For example, the US Department of Transportation’s Federal Motor Carrier Safety Administration could help you with your research. It will allow you access to a searchable database to check a moving company’s history and credentials. Finally, this database will help you find an established, legitimate, and reliable moving company.

Do your research before you pick a company without the insurance and license.
Check the credentials of a moving company and make sure they have both insurance and license.

What are the risks if you underestimate the importance of insurance and licensing when hiring movers?

There are governing agencies that monitor licensed are registered movers. On the other hand, nobody monitors an unlicensed mover. In such a case, there is nothing you can do if a mover takes your stuff and never shows up. Because there is nothing a regulating transportation agency can do to help you. So, don’t risk it and hire only the moving companies that are transparent and reliable.

Theft and extortion are the greatest risks of hiring an unlicensed mover

Hiring a mover without a license doesn’t necessarily mean bad things will happen to you. But, it’s a fact you open yourself up to a huge risk. For example, some of these companies will hold your belongings hostage claiming they were lost or stolen during the move. Afterward, they’ll try to extort you for more money by saying they can recover your belongings for a fee. Also, some movers tried to embezzle personal property. Meaning, after they pack up your belongings, they never turn up, but sell them.

red attention sign
Finally, beware of many scams in the moving industry. One of them is to hire movers without insurance and license.

To sum up

You surely realized the importance of insurance and licensing when hiring movers. Don’t try to save money on these aspects, but be smart and responsible. We wish you a successful relocation.

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I was hoping to avoid the struggles of having to relocate altogether, but with ReloSmart Movers by my side, I’m glad I didn’t. The team did an incredible job – they arrived on time and handled everything perfectly!

David R.