Insurance for Towing Companies: A Complete Guide

Tow truck companies offer valuable services to stranded motorists regardless of the hour. Yet, the operators are exposed to different risks that could render your towing business worthless when performing the task.

But how will you protect your operators, tow truck, and client properties when towing?

If you’re starting a towing business, buying tow truck insurance coverage is a must. It does not only protect you against lawsuits but gives you peace of mind knowing that your workers and assets are covered.

In this insurance for towing companies guide, you’ll learn the types of covers and how it can save your business:

Businesses that Need Tow Truck Insurance Coverage

Tow trucks offer more than moving immobile vehicles to the designated workshops. You’re likely to see these trucks in the following businesses:

  • Auto body shops
  • Dealership shops
  • Roadside assistance businesses
  • Auction companies
  • Repair shops

Considering that these businesses face higher risk when towing cars, they need the appropriate coverage.

Insurance Coverage Types for Tow Trucks

There are different types of coverages in the towing businesses that can be customized to fit your needs. Finding the correct and affordable protection may be a bit hard.

Although no business would want to miss essential coverage, no one wants to pay more for coverage.

You’ll get the proper coverage when working with an independent and trusted insurance firm like the Central Carolina Insurance Agency. If you’re not sure of which coverage suits your towing business, here are common coverage for tow trucks:

Liability Insurance

Accidents are bound to happen regardless of how carefully you operate your business.

Thus, you must get a liability policy to stay covered during transport or other towing activities. Common liability policies for tow trucks businesses include:

  • Medical payments Insurance: Caters for passenger and operator medical bills arising from injuries sustained during the accident
  • On hook or cargo insurance: It covers damages to the towed vehicle
  • Auto liability Cover: Caters for damages caused to other cars by your tow truck or the operator
  • Uninsured Motorists Policy: Caters for losses or damage from motorists that have nonexistent or insufficient coverage.

The benefits of acquiring the right liability insurance cannot be overstated. Besides protecting you against damages raised against you, the policy will defend your operators and business when sued.

Excess Liability

What happens when underlying insurance is exhausted and the damage is not fully covered? Excess liability insurance is an additional cover that protects you further when you exhaust your primary layer of protection.

If your damage cost is beyond the auto liability coverage, you don’t have to worry. The excess liability policy will pick up from where the auto liability left.

The policy requires a small premium each year but can offer peace of mind where significant damage is done. Besides, the towing company insurance cost is very small compared by how much it can save you after an accident.

Workers Compensation Insurance

Regardless of the number of employees in your towing company, you must get a worker’s compensation coverage. It’ll protect the employees whenever they get injured, sick, or die while working for your company.

Losing reliable workers is a blow to your business, but the families and dependents stand to lose more. When you cover these employees, their medical bills get settled, and their income can be replaced if they cannot work.

Don’t ignore getting this coverage because the state does make it mandatory. You may be surprised to realize how much a single incident can cost your business. Moreover, the policy can offer death benefits to the immediate family for an on-the-job accident.

Business Interruption Insurance

Many natural disasters can affect your business, forcing you to close down for days or weeks. Recovering the revenue lost on the closed days may never happen if you’re not covered.

If you live in areas prone to weather challenges, purchasing business interruption insurance is essential.

The policy goal is to keep the business afloat by ensuring that your inability to operate does not make you close down. The coverage helps you recoup part of revenues that you would have generated if you were open.

On-Hook Towing Cover

You never know what will happen when you’re towing the vehicle. If an accident occurs and the towed vehicle gets damaged, you may not afford the repair cost. Buying an on-hook towing insurance cover can save you from liability costs incurred during a car tow.

Arming your business with the right on-hook towing coverage may be a lifeline to your business survival. Although this coverage may not look necessary, let your insurance provider customize it for you.

Physical Damage Cover

Though trucking liability insurance is mandatory, an additional physical damage cover can save your business more. You do want to caution your firm against damaging other people’s property, but don’t forget your vehicles and equipment are important and expensive too.

Physical damage insurance protects your business equipment, trucks, and cranes against unexpected accidents like collision, vandalism, or fire. Besides covering the damage caused to other vehicles, it also covers your truck.

Garagekeeper Policy

Apart from towing, do you also repair vehicles? Whether you have mechanics or use the garage as storage for customer’s vehicles, garagekeeper’s cover can save you from being responsible for damages.

If damage occurs to cars being repaired in the garage, this insurance policy caters for the liabilities.

Get the Best Insurance for Towing Companies Today

Are you looking for an experienced and trusted insurance professional that is an expert in the towing industry?

Central Carolina Insurance Agency protects towing businesses against claims and liabilities that towing companies face. Using time-tested approaches, we analyze your business, understand your needs and customize the best coverage for you.

Don’t wait any further. Contact us today for a free quote on the best insurance cover for the towing business.