Why do I need a Towing Insurance policy?

As a tow truck operator, you spend your days towing and removing disabled or illegally parked vehicles. Drivers depend on you to bail them out when they break down, run out of gas, or get into accidents on the highway. Business owners turn to you when vehicles are abandoned or parked illegally on their property. Rain, snow or shine, you’re ready to respond whenever you’re needed.

Since your livelihood is directly tied to your truck, chances are you already have a commercial auto policy.

With Towing insurance, you get general liability insurance, which offers you protection that auto liability insurance can’t give you. For injuries or third-party property damage that occurs while you’re on a call but not in or around your vehicle, you may need general liability coverage.

There’s no doubt about it—general liability insurance is a must-have for tow truck drivers. You never know when or how something will go wrong, but you can make sure you’re covered and protect your business against expensive claims.

What is covered under the Towing Liability Insurance policy?

As a tow truck driver, you know how important it is to transport towed vehicles safely from one location to another. Towing Liability Insurance protects your business from unforeseeable events like the following:

3rd-party, non-employee bodily injury – Accidents don’t just happen on the road. If a customer ends up injuring themselves at your business location (for example, by tripping over something and sustaining a laceration or sprain), you could be held liable for bodily injury.

3rd-party property damage – Just like bodily injury, property damage can also happen at your business location. If the customer in the above scenario damages their watch while tripping, they could end up seeking reimbursement for damages.

Defense costs – If a customer or other third party makes a claim against you, defense and investigation costs can quickly become expensive. Towing Insurance covers your defense and investigation even if the claims are found to be fraudulent.

Are workplace injuries of my staff covered?

No. General liability insurance only provides coverage for injuries to clients and third parties. If you have employees, you might want to consider purchasing workers’ compensation insurance. Keep in mind that in most states, workers’ comp is actually required.

Does Towing Insurance cover damage to my equipment?

Also, no. General liability insurance can only provide coverage for damage to your client’s or a third party’s property. To protect your equipment, consider inland marine insurance. And if you have a garage location, you may want to look into a garage keepers policy.