Understanding What Insurance Coverage Your Towing Company Needs

Most auto owners will experience a breakdown or accident that requires a tow at one time or another. That’s where tow trucks come in. Towing companies provide a valuable service to the public. They also face increased liability. The right insurance package can limit that liability and protect your business from financial strain.

Risks of Operating a Towing Company

There are myriad things that can go wrong when towing a vehicle. Consider these situations that may not be covered by a standard auto liability policy:

  • Panicked or distressed motorists may get too close to the equipment as their vehicle is loaded
  • An improperly secured vehicle can detach from a truck while being towed
  • Vehicles could be damaged while in storage waiting to be repaired at the garage

Types of Insurance Coverage

Research into towing coverage shows that there are certain types of coverage that most operators will want to secure. Much like with a standard commercial auto policy, you will want to have certain features such as liability, medical payments, property damage, and uninsured/underinsured motorist protection. Two common coverage options that limit additional liability faced by towing companies include towed vehicle and garage keepers coverage.

The exact coverage you need for a towing company will depend, among other things, on the scope of your business, its structure and where it is located. Talk to an agent knowledgeable about towing coverage to build the right policy for your business’ needs.