Powered by

Dream Assurance

Powered by

Dream Assurance Group

Tow Truck Insurance: Protecting Your Business

Tow truck operators provide essential services such as roadside assistance, vehicle towing, and recovery. From navigating difficult roads to dealing with irate vehicle owners, tow truck drivers are exposed to specific risks on a regular basis. Given the nature of their operations, tow truck drivers require tailored insurance coverage that meets their unique needs. This is where tow truck insurance comes in.

Why Do Tow Truck Drivers Need Insurance?

Towing businesses need insurance for several important reasons, primarily to protect their financial interests, comply with legal requirements, and mitigate the common risks associated with their industry.

Here are several reasons why towing businesses require coverage:

What type of Insurance Coverage Do Tow Truck Companies Need?

Tow truck businesses often deal with several risks when providing towing services and may be held liable for medical bills and other settlements. Having multiple tow truck insurance coverages can help them address third party claims without it causing undue financial strain.

Liability Insurance

Physical Damage Insurance

Other Types of Tow Truck Driver Insurance

Types of Commercial Tow Truck Insurance Coverages

Tow Trucks General Liability Insurance

Protects against damage to a customer’s vehicle while they are in the custody of the towing business. This coverage is essential for towing companies that store or impound vehicles.

Medical Payments Insurance

Medical payments insurance provides coverage for medical bills incurred by the driver and passengers in the tow truck in the event of an accident, regardless of fault.

Garage keepers Legal Liability Insurance

Garage keepers legal liability (GKLL) Insurance is a specific type of insurance coverage designed for businesses that take custody of customers’ vehicles, such as tow truck operators and auto repair shops. In the context of tow truck insurance, GKLL provides financial protection when there is damage to the customer’s vehicle while it is in the care, custody, and control of the tow truck business.

On-Hook Towing Insurance

On-hook towing insurance provides physical damage coverage in case a customer’s vehicle is damaged while being towed. On-hook coverage is crucial in case of accidents or incidents during the towing process.

Towing Operations and Storage Protection

This is a specific type of coverage that addresses the unique risks associated with towing businesses, especially those that provide storage services for impounded or disabled vehicles. This coverage is designed to protect tow truck operators and towing businesses from liabilities related to towing operations and the storage of vehicles.

Additional Coverages for Towing and Storage Businesses

In addition to tow truck insurance, you may get in touch with an insurance agent for additional coverage. These policies may include:

General Liability Insurance

General liability insurance covers property damage, bodily injury, and other liabilities related to towing operations.

Non-Trucking Liability Insurance

This type of commercial trucking insurance provides coverage for tow trucks that are not engaged in company-related activities and fills gaps in coverage.

Rental Reimbursement

If tow truck drivers have to pay for a substitute vehicle while their primary vehicle is being repaired following a covered accident, rental reimbursement can help keep operations running.

Umbrella/Excess Coverage

This provides additional protection beyond the coverage limits of your primary insurance policies and supplements them with higher limits.

Get the Right Insurance Coverage For Your Tow Trucks

Get comprehensive coverage for your tow truck business when you contact our TRS-certified insurance agent. We will help you determine sufficient coverage limits for your needs. Get exceptional service and pay competitive rates for a well-rounded commercial insurance coverage policy.