Last Updated on September 21, 2022 by
Tow truck drivers offer their community a very valuable service, similar to any other truck driver. When drivers feel like they will never leave their current location again, they serve as rays of light and hope. If you own and operate a tow truck, you are well aware of the risks your company faces when assisting heavy-duty trucks or other vehicles by the side of the road, particularly during severe weather.
Tow truck insurance is essential because of how many hours they invest on the road assisting others in different scenarios. By offering coverage for the many commercial risks that auto towing companies encounter on a daily basis, tow truck insurance comes to the rescue in these circumstances.
Let’s explore the requirements for having tow truck insurance in more detail.
What is Tow Truck Insurance?
Having tow truck insurance coverage that is relevant to tow truck insurance requirements helps to reduce many of the dangers tow truck operators face. It is a specialist type of commercial truck insurance that is created for towing companies.
In the unlikely event that an accident occurs or an incident occurs involving one of your trucks, towing truck insurance will protect you. The tow truck insurance provides coverage for a wide range of issues, including third-party liabilities for injuries, property damage, medical costs, and truck damage sustained when towing vehicles.
Why Do You Need Tow Truck Insurance?
If something were to go wrong while you were towing a customer’s car, towing insurance would protect both your possessions and the vehicles you were transporting. Depending on the sort of pulling your company performs, there are many different types of coverage. In order to guarantee a smooth towing procedure, you need specialized commercial truck insurance if you store disabled cars at a location that you own or rent.
Having tow truck insurance can help you in the following ways:
- Cover your third-party medical and any property damage expenses.
- Saves you from financial strain if any of your trucks get damaged while hauling the vehicle.
- Provides coverage for unforeseen injuries and deaths to your worker, protecting your brand reputation.
- Guards against any lawsuits.
Different auto towing businesses, such as Roadside Service Providers, Circling haulings, Action Wheel loaders, Truck Parts Suppliers, Stations with Full Assistance, or Automobile Maintenance, require different forms of tow truck insurance.
Auto Towing Insurance Coverages You Need
Auto Insurance Liability
The most basic form of insurance that guards you towards liabilities that you caused is this one. Let’s imagine that when towing an automobile, the rope cable breaks. After making a loud thud on the pavement, the car takes considerable damage. The driver of the automobile hits his head on the steering column and is cut and concussed. This is where liability insurance comes into play since it will cover both property damage and personal injury. You will be held accountable for any damages you may have done to the vehicle owner or any spectators, any damage to the automobile, or any extra items you may have impacted.
Any medical expenditures you or your driver could have due to any unforeseen accident will be covered by this insurance policy. If the owner or any onlookers were wounded during towing the broken-down car, this insurance would safeguard you.
Physical Damage Insurance
We have already talked about the protection plans of third-party vehicle owners or onlookers. Now let’s discuss safeguarding your company. In the case of an accident, the physical damage insurance will safeguard your tow truck. In the case of any disastrous accident or event, it will provide coverage against all the repairing costs of your truck, or any injuries to your driver.
Underinsured/ Uninsured Motorist Insurance
It frequently happens that an uninsured driver strikes your roadside tow truck, inflicting various damages to your main asset (truck) and leaving you with a substantial financial loss. This insurance saves your towing company in such circumstances. The name of the insurance indicates that it provides protection in the case that your tow truck is hit by an uninsured operator.
Employers or employees are any company’s primary assets that may make or break the worth of their firm. You must have a strategy in place to aid your personnel should they have an occupational injury because hauling may be a dangerous activity. The structure you have worked so hard to build can be destroyed with just one injured worker. Employers’ liability insurance protects your employees and will cover any medical costs incurred by one of your employees or drivers if they are hurt at work or become unwell while working for you. Even though they are unable to continue, it may make up for part of their lost wages and provide the employee’s family with life insurance in case of any unfortunate death.
Some additional towing insurance policies you may need for your auto towing business
Your trucking company may keep clients’ cars on your premises while they are getting restored. As a result, your company is now subject to more significant requirements. If something were to happen to a customer’s car while it was in your garage, garage keepers’ coverage insurance would protect you.
If you work as a car carrier, you might want to think about getting on-hook towing insurance to protect your client’s car while it is being transported. These are suggested to protect your company from any accident that could entail one of your customers’ vehicles.
Understand Your Tow Truck’s Coverage
When purchasing tow trucking insurance, it’s critical to bear in mind the law’s requirements. In all 50 states, heavy truck insurance is required, and not having it might result in steep penalties or, worse, the loss of your license. Therefore, examine the state-mandated truck insurance rules before choosing insurance.
Tow truck insurance is a must for every auto towing business. You need coverage for the vehicles you are towing in addition to your standard commercial truck insurance. Remember that the correct tow truck insurance might shield your towing company from a variety of expensive blunders.
To get the right kind and amount of coverage, talk to a commercial insurance specialist. You can share your requirements with them. They will then advise you on what coverages you should consider for your towing business that will enable you to run your operations smoothly.
I hope you learned something from this blog! Please feel free to express any questions or concerns you may have in the comment box below. We’ll be happy to help you.
Apart from this if you are interested to know about What is the Towing Capacity of your SUV or Truck? then visit our Business category.