What Does It Mean to be Fully Licensed, Bonded, and Insured?

You’ve hired a moving company and feel confident your items are safe because they told you they are fully licensed, bonded and insured. Sounds impressive, right? But, what does this really mean, to be fully licensed, bonded, and insured?

Rest assured that the United States laws require all legitimate moving companies to be licensed, bonded and insured. However, it is important to understand what each term really means.


When a moving company says they are licensed, this refers to their business license. A business license is granted by the federal or state government. This license is a document that states the company is approved to legally conduct business, in the form of being hired for the purpose of moving services, within their state or country or across state borders.


Many people feel protected when they discover that a moving company is bonded, but they often confuse the word with insurance. Being bonded means that the company guarantees that they will perform the work you hired them to do. This guarantee is a financial guarantee that they will fulfill and uphold their contract.


When a moving company says they are insured, this means that should your items be broken during the course of the move, you will be compensated. The level of insurance, however, is not always clearly understood by the customer. Some moving companies have base-level insurance policies in place that compensate you for breakage or loss of items on a per-pound basis. This per-pound cost is often less than a dollar a pound, and would not even begin to cover the cost of a lucrative item. Be sure you understand fully what the insurance will cover before you sign a contract accepting it and request additional insurance if necessary. Most companies have higher levels of insurance for an extra fee.

When you are preparing your moving checklist make sure you include all these vital things. It is very important to do that in order to relocate safe and hassle free.

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