02 Oct What Types of Insurance Do Tow Truck Operators Need?
Whether you operate a towing business or offer towing services at your repair shop or service station, you face additional risks beyond those of regular drivers. Regrettably, your business insurance policy or auto insurance policy won’t protect you from all your unique financial risks.
It’s extremely important you buy the right insurance coverage. Here are just a few things you may want to consider if you want to protect your interests well.
What is Tow Truck Coverage?
Tow truck coverage is a specially-designed insurance to protect you from the financial repercussions of an untoward event, such as an accident or injury. Insurers may include the following coverages:
Liability Insurance
If you or one of your drivers causes property damage or bodily harm to others, your insurance can reimburse you for the associated costs. Liability insurance has several components:
Bodily Injury
This portion of your liability insurance pays medical bills, hospital expense, ambulance, long-term care, and even funeral expenses if you cause an accident that results in injuries or death. Policies limit coverage to a specified amount per person per accident.
Property Damage
This coverage reimburses you for the costs associated with repairing other vehicles and other objects if you or a driver damages them. For instance, you might back into a fence or a pole.
Medical Payments Insurance
Medical treatment after an accident can be very costly. Fortunately, medical payments insurance pays medical bills for you and/or your passengers if you’re injured during an accident, no matter who is at-fault.
Uninsured/Underinsured Motorist Insurance
Unfortunately, many individuals drive with no insurance or only carry state minimums. If you’re involved in an accident with a person who has no coverage, or their coverage limits are inadequate to cover damage and injuries, the only way to recoup your losses is through the courts and the chances of getting your money are slim to none. This coverage helps you recover your costs.
Optional Insurance Considerations
If your repair shop or service station stores customer vehicles on your premises, they’re your responsibility. Insurers offer “Garagekeepers Legal Liability Insurance” to protect these vehicles from fire, theft, vandalism or collision while they are in your care.
“On-Hook Towing Insurance” offers coverage while you transport a customer’s vehicle. If you accidentally damage a car while it is in-transit, the insurance company reimburses you for the damages. Insurers usually require you have liability insurance before you can buy this optional coverage.
Relying on a basic insurance policy doesn’t make sense for tow truck drivers. Discuss your needs with your insurance agent or broker. They work for you, not the insurance companies. Since each carrier varies their tow truck coverage and rates, it makes sense to let your agent do the legwork to source the best possible coverage at the most reasonable rates.
They’ll tailor a policy to your specific needs so you don’t end up footing the bill if there’s an accident or injury and you won’t pay for unnecessary bells and whistles either.
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