Tow Truck Insurance Coverages-What Coverages you should opt for?


Towing totaled or damaged vehicles, providing roadside assistance, keeping the towed vehicles in your custody, and servicing it. If all these activities are part of your business then you assuredly need tow truck insurance that protects your business from various possibilities.

Tow trucks are in great demand which means their operators are going to face an ascending number of liability risks than earlier. Towing business is an inherently risky occupation to be in. Drivers operating on crowded roads, uncertain weather conditions, and hauling vehicles weighing tons, all these activities are part of your business operations. As a tow truck driver, you are exposed to a number of risks on the road. The level of risk even goes higher when you are towing a client’s vehicle. The whole towing session is uncertain for the driver as well as other people’s assets. It can get stolen or damaged in the middle of nowhere.

Keeping all these hazards in mind, tow truck insurance is a necessary coverage for your business. Tow truck insurance is a type of commercial truck insurance that covers you and your trucks from various possibilities on the road during the entire towing session. It not only protects the towed vehicle but also from the likely danger to your own vehicle and the trucker who is operating it. Tow truck insurance protects you from possible lawsuits after causing damage to the towed vehicles.  

What hazards do tow truckers face?

There is a range of risks and possibilities that tow truck drivers are exposed to while pulling a client’s vehicle. The following are some common risks that truck drivers face in each towing session:

  • Tow truck drivers can lose their life in a perilous accident.
  • There is no control over weather conditions that impact the towed vehicle.
  • Breaking glasses or sharp edges while loading vehicles.
  • Bodily injuries were caused by other people or caused by other vehicles on the road.
  • Steal, fire, explosion, and other reasons can cause loss of shipment (towed vehicle).

What insurance coverages do you need as a towing business owner?

Whether you are thinking of starting a towing business or already running one. As a towing business owner, you need certain coverages that protect you and your company from unpreventable hazards on the road. Here is a complete list of tow truck coverages that you need for your business:

  • Liability coverage

As already discussed, carrying liability coverage is mandated by the law. Without this coverage, no trucking business or driver can operate legally on the road. This policy proves to be beneficial in the event of an accident that results in property damage and bodily injury to the third party.

  • Comprehensive

If your tow trucks are new then consider taking comprehensive coverage for each. This coverage protects the insurer against the damages occurring from fire, explosion, vandalism, theft, and other circumstances other than collision.

  • Garage service

If your towing business also provides servicing facility and keeps the towed vehicle under your custody then having garage service coverage is a must. Garage service insurance provides protection against all the risks that lead to vehicle damage while keeping or servicing them in your station.

  • Physical damage

Tow trucks are undoubtedly expensive purchases. If you have done this major buying out of your own pockets then you should have physical damage insurance coverage. This policy pays for the property damage that you suffer in the event of an accident, no matter who was at fault.

  • Underinsured or uninsured motorist

If your tow trucker gets involved in an accident or collision with a driver who has zero or inadequate vehicle coverage then this type of insurance comes into play. This policy especially protects the drivers in hit-and-run cases.

  • On-hook

On-hook coverage pays for the damages or even for the replacement cost of the vehicle which you tow. This policy pays for all the expenses sustained from the repairing, replacement, and other losses of the towed vehicle during the pulling session.

  • Medical payments

This coverage pays for all medical expenses of your trucker and other passengers when they get physically injured in an incident. Medical payment is important coverage for towing businesses because they need to protect their truckers who are responsible for the whole towing operation.

  • Collision

This coverage pays for the repairing and replacement cost when your truck collides with another vehicle in an accident.

  • Worker compensation coverage

This coverage is important for towing business owners. If your drivers are towing vehicle that weighs tons then they should be protected as well. This coverage pays for the bodily injury that your driver faces in an accident. Your drivers are one of the important aspects of your business, so safeguarding them should be one of your priorities.

  • Non-trucking liability

This coverage offers protection against likely risks when your tow trucks are not pulling any vehicle or off dispatch.

To conclude

As a tow truck driver, you cannot afford to rove on busy roads without appropriate coverage. A single incident can shatter your towing business and your finances. Every business that uses their commercial vehicles for making money needs truck insurance but towing businesses specifically need this coverage without fail. Liability insurance that protects third parties from bodily injury and property damage in the event of an accident is mandatory coverage. So you can ignore it because you already have one. You need to focus on other additional insurances that protect your finances and towing business from unforeseen circumstances.

Tow trucking operation is done in risky circumstances. The way your tow business is unique in nature, the possibilities that it faces in the whole pulling session are also different. To protect you from this unique set of risks, tow truck insurance comes into play. It compensates you for the damage and loss arising out of both manmade and natural disasters. If you think your current truck insurance is not shielding your commercial vehicles in the right manner. Then consider adding a few of the above add-on coverages according to your business needs and protect it against various risks you encounter during the tow session.

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