Can you use a rental truck for a moving business? What the rental terms actually say

Most start-a-moving-company advice says to rent a truck for your first jobs. Before you do, read the rental agreement. Here is what U-Haul's terms say, which rental desks are set up for moving businesses, and the insurance questions to ask before the first paid move.

"You don't need to buy a truck, just rent one" is the most common piece of advice for starting a moving company, and we have given it ourselves. A viewer pushed back on one of our videos: what about the rental agreement, and what about insurance if something breaks? He was right to ask. The answer depends on which counter you rent from and what you tell them.

What U-Haul's terms say

U-Haul's own reservation terms include this, under Use of Equipment:

Customer represents and warrants their rental of Equipment is for the sole purpose of Do-It-Yourself moving.

The same section says renting with the intent to use the equipment for any other purpose may be treated as fraudulent, is a material breach, and may void any coverage provided or purchased. Copies of U-Haul's corporate account terms that circulate online also say corporate accounts are not available to moving companies or junk removal companies.

In plain terms: a U-Haul is rented for people moving their own things. Using one to run paid moves for customers is not what the contract is for, and the damage protection you bought at the counter may not hold if something goes wrong. Read the contract you actually sign, because terms change, but do not assume the waiver protects a paid job.

Where the customer's own rental fits

This is why labor-only work is the cleanest way to start. The customer rents the truck for their own move, which is exactly what consumer rentals are for, and hires you to load or unload it. Their rental, their contract, your hands. You need general liability for their home and your own crew, not a vehicle.

Rental desks that are set up for moving businesses

When you are ready to run a job in a truck you rented yourself, rent from a commercial desk and tell them what it is for.

• Penske Truck Rental has a commercial page for moving and storage professionals that lists local movers among the businesses it rents to, by the day, week or month.
• Enterprise Truck Rental lets you reserve a truck for business use and open a business account through a local branch.
• A local truck leasing or rental company in your area may rent box trucks to small contractors. Ask.

At the counter, ask three questions and get the answers in writing: Can this truck be used to move a paying customer's household goods? What liability and physical damage coverage comes with the rental? Do you need a copy of my insurance certificate?

The insurance to have before the first paid move in a rented truck

Your moving company insurance has to cover the job, not just the truck:

• General liability for the customer's home and anyone who gets hurt.
• Cargo coverage for the customer's belongings while they are in your care.
• Hired auto liability, which is coverage for vehicles you rent or borrow for the business. Ask your agent whether your policy includes it and what it covers on a rented box truck.

Your personal car insurance will not help here. Most personal policies exclude vehicles over 10,000 pounds gross weight, which covers most box trucks.

The order still works

Book the job first, take a deposit, then reserve the truck. That part of the advice holds. What changes is where the truck comes from: a commercial desk that knows it is going to a moving company, with your own liability and cargo coverage behind it. It costs a little more than the consumer rate. It is still far cheaper than buying a truck before your phone has rung, and it is the version of the advice we would stand behind.