Moving Company Licenses and Bonds Before Closing

A moving company works under layers of paper: the customer's estimate and bill of lading, federal and state registrations with insurance or bond filings, building and van line contracts that ask for certificates, and local permits. In a sale, whether each registration and filing continues depends on the legal entity and the deal structure, so do not assume any of them moves to you. This guide is for buyers who want to know what to collect, what insurance each document asks for and what to reissue at closing.

The short answer

Interstate household goods movers register federally and file security for customers' goods and public liability. Moves that stay inside one state may fall to state rules instead, which differ, and whether a move counts as interstate can turn on where the goods started. Verify your own with your state and local authorities.
The customer contract and the federal rules together set the liability the mover takes on: a written estimate, disclosed liability limits, an arbitration program, and claim windows of at least 9 months to file and 2 years to sue for interstate moves.
A certificate of insurance is information only. Additional insured status comes from an endorsement on the policy, so an inherited certificate does not prove it.
Do not assume a registration, number or bond transfers to you, or that it does not. Florida's mover registration is not assignable, and a lapse in required insurance suspends it immediately.
A bond is not insurance for the mover: the surety expects to be repaid. Ask counsel what to reissue in your entity's name before closing.

What paperwork sits behind a moving company?

Each layer below carries an insurance or bond ask. Ask for every one in diligence, and note whose name is on it.

The layers of paperwork behind a moving company
Layer	What it is	What to ask for	What a sale can change
Federal registration	Registration of carriers moving household goods across state lines, conditioned on filed security	The number, authority and filings, and the Federal Motor Carrier Safety Administration (FMCSA) record	Depends on the entity and structure. Confirm with FMCSA and counsel
State registration or permit	Required by some states for in-state movers, with rules and amounts that vary	The state registration, renewal date and filings	Florida's is not assignable. Other states vary
Insurance and bond filings	Proof of liability, cargo security or a bond in the regulator's file	Which insurer or surety filed what, in whose name, with what cancellation notice	Filings in the seller's name need replacing or confirming
Vehicle and driver compliance	Commercial driver's license rules, federal safety rules, forklift training in warehouses	Driver files, vehicle inspection and training records	Records and obligations stay with the company
Local permits and business licenses	City licenses and curb or loading permits where they apply	A list from the seller, then a call to each city	Rules vary by city, so check each locality
Customer contracts	Estimate, bill of lading, tariff, building and corporate agreements	Templates and the largest accounts' agreements	Consent may be needed in an asset deal
Warehouse or yard lease	The lease and its insurance and waiver terms	The lease and the contents inventory	The landlord may need to consent or issue a new lease
Large accounts	Corporate relocation, government and referral accounts	The agreements and the share of revenue they represent	May need consent, and federal contracts do not move automatically. Ask counsel
Van line or carrier agreement	Agent agreement with a larger household goods carrier	The written agreement and claims history	The agreement may address sale or change of control

See licenses, permits and registrations when buying a business for the general deal view.

What does the customer's contract promise, and why does insurance care?

For an interstate household goods move for an individual shipper, the federal rules give the customer these protections:

A written estimate based on a physical survey of the goods, unless the shipper waives it in writing, either binding or non-binding.
On a non-binding estimate, no more than 110 percent of the estimate can be required at delivery.
Before the bill of lading is signed, a summary of the mover's arbitration program and its complaint handling procedures.
Disclosure of the mover's liability limits.
At least 9 months to file a loss or damage claim and at least 2 years to sue after a written denial.
Binding arbitration for claims up to $10,000 when the shipper asks for it.

These rules cover interstate moves for individual shippers. They do not describe a local move inside one state, and whether an office move counts as household goods is a question for counsel. The insurance point: the customer contract and the federal rules together set the liability the mover takes on, and the cargo policy is what may help pay for it. Compare the template to the policy limit, as coverage gaps for moving companies explains.

Federal law sets civil penalties of at least $10,000 per violation for a knowing and willful failure to deliver or unload a household goods shipment after the shipper tenders the required payment (the statute calls this holding a shipment hostage), and the registration of any carrier or broker under the same ownership or operational control can be suspended. That matters if you own more than one mover.

Which filings carry insurance or a bond?

The table shows what the federal rules, Florida and Texas say. It describes the rules as published, and several pages carry amendment or suspension notes, so confirm the current text with the regulator.

Examples of insurance and bond requirements in statute and rule text
Source	What the text says	What to confirm
Federal rules: customers' goods (interstate household goods carriers)	Security for individual shippers' goods in the carrier's possession, with $5,000 per vehicle and $10,000 at one time and place in the rules text	Which text of the cargo sections controls today and the current dollar schedule, because the pages carry suspension and amendment notes (2017 and 2019 for the regular cargo sections, with temporary sections that carry the same amounts)
Federal rules: public liability (interstate for-hire carriers of non-hazardous property, not only movers)	$750,000 for vehicles of 10,001 pounds or more (section 387.9 of the federal rules). A temporary section (387.303T) also lists $300,000 for fleets of smaller freight vehicles. Proof is usually a federal endorsement the insurer attaches to the auto policy, usually the MCS-90 (a federal Motor Carrier Safety (MCS) form)	Which version of the public liability sections controls, the current dollar schedule, and the 35 days' notice of cancellation the endorsement calls for
Florida Statutes chapter 507	Registration with the state; liability insurance of at least $10,000 per shipment for negligent loss or damage; motor vehicle liability that rises with vehicle weight; a lapse suspends the registration immediately; registration is not assignable	Whether other rules or forms add requirements
Texas Transportation Code 643.101	Chapter 643 of the Texas Transportation Code sets state insurance rules for registered carriers, including cargo insurance for household goods carriers	The amounts and the filing rule, with the Texas Department of Motor Vehicles

Truck size matters. Federal commercial driver's license rules start at a 26,001 pound weight rating. Federal safety rules have reached vehicles of 10,001 pounds in interstate commerce, but the page that publishes that definition carries a July 2026 amendment note. Confirm what is in force before assuming a smaller truck is outside the safety rules.

If you also register as a property broker to arrange moves for others, federal law calls for a bond or trust fund of at least $75,000 for unpaid freight claims, and Florida requires a moving broker to post a $50,000 performance bond or certificate of deposit.

A bond is not insurance for the mover. The surety stands behind the mover's performance to the obligee but expects the mover, and often its owners through an indemnity agreement, to repay any claim. A change of ownership usually means new underwriting and a new indemnity agreement. See surety bonds and do surety and license bonds transfer?

What do buildings, van lines and lenders ask for?

Commercial customers and buildings, such as property managers, condominium boards, schools and offices, may ask a mover for a certificate of insurance before the crew can use an elevator or dock, and some want the building owner and managing agent named as additional insureds. Requirements vary by building, so read each one's move-in rules. A certificate confers no rights, and additional insured, primary and noncontributory, and waiver of subrogation terms come from the policy, not the certificate. These are general liability endorsement concepts and may not apply the same way to a cargo form. See why a certificate is not coverage and additional insured, waiver and primary wording.

A hypothetical example. A property manager will not release the freight elevator on a Saturday morning, because the certificate on file expired last month and names only the management company. The family's lease ends Sunday, so the crew waits and the move is rebooked. Who tracks expirations after the sale, and can the broker quickly reissue a certificate with the endorsement the building wants? Certificate tracking in the first month shows a routine.

A mover that works as an agent of a larger household goods carrier has another layer. Federal law makes the carrier responsible for its agents' acts or omissions within their actual or apparent authority, or ratified by the carrier, and requires written agreements with prime agents, kept for at least 24 months after termination. An agent agreement may set insurance, indemnity and claim chargeback terms, so ask for it and the claims history, and ask counsel whether a sale needs the carrier's consent.

Lenders add more. For Small Business Administration (SBA) 7(a) loans over $50,000 the loan rules require hazard insurance on pledged collateral and a lender's loss payable clause on equipment, so financed trucks must name the lender, but they set no minimum general liability limit. If the warehouse or yard is leased, read the lease for insurance and waiver terms and ask whether the landlord must consent to the sale, since goods of many customers sit in that building. See lease insurance requirements.

What happens to registrations and filings when you buy?

The structure of the deal drives the answer. In a stock or membership interest purchase the legal entity stays the same, with its contracts, permits and policies, though a change of control can still trigger notices or approvals. In an asset purchase a new entity takes what the agreement transfers, subject to successor liability rules that vary by state and facts. See asset purchase versus stock purchase.

The federal registration statute (49 U.S.C. 13906) lets a carrier stay registered only as long as it satisfies the security requirements. Florida's text says the registration is not assignable, so a new entity in an asset deal would likely need to apply for its own. Whether a U.S. Department of Transportation (USDOT) number, operating authority or another state's registration transfers is something to confirm, not assume either way. Ask counsel and the regulators. Before closing:

List every registration, number and filing, and the legal entity named on each.
Ask each regulator, in writing, what a stock or asset sale requires.
Have the insurance and bond filings for your entity effective at the moment of closing, with no gap.
Ask the van line or largest customers whether they need to consent.
Replace the certificates that name the seller, and give buildings the new ones.
Collect the complaint log, arbitration filings and driver files in diligence.

A Morrow review can compare each filing and certificate with the policies behind it, but deal counsel owns the legal conclusions.

Keep reading

Frequently asked questions

Does my moving company's federal registration or operating authority transfer when I buy?

There is no single answer, and it differs by registration. What decides it is the legal entity that holds the registration, how the deal is structured and the regulator's own rules. Ask deal counsel and the regulator in writing before you sign, and line up your insurance filings for the closing date.

Do customers need a certificate of insurance from a mover?

Household customers generally deal with the bill of lading and estimate. Buildings and commercial customers may ask for a certificate, sometimes naming the building owner as additional insured. Requirements vary by building, so read each one's move-in rules.

Is a certificate of insurance proof that I am an additional insured?

No. A certificate is information only and confers no rights. Additional insured status comes from an endorsement on the policy, so ask your broker for the endorsement itself.

Is a surety bond insurance for my moving company?

No. A bond protects the party that requires it, and the surety expects to be repaid by the mover and often its owners if it pays a claim. A change of ownership usually means the bond is underwritten again.

Can a lapse in insurance stop my moving company from operating?

It can. Florida's statute suspends a mover's registration immediately on a lapse in required insurance or bond, and federal registration depends on continuing to satisfy the security requirements. Confirm what applies in your state.

References

Just bought a business? Get your insurance reviewed.

Send Morrow the declarations pages, loss runs and key contracts you inherited. Morrow can review them against the business you bought, flag gaps and request quotes where it makes sense. Any new terms depend on carrier underwriting.

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This article is general information, not legal, tax or financial advice, and not a coverage determination. Coverage depends on the actual policy wording, carrier underwriting, your purchase agreement and your contracts. Ask your attorney and accountant about deal and legal questions.

Moving Company Contracts, Licenses and Bonds: What to Check Before Closing