Garage keepers liability is offered in three basic tow truck insurance coverage options:
"Legal" - Covers damages for which you have been proven legally liable, i.e., damages to a customer's vehicle due to your negligence.
"Direct Excess" - Covers damages regardless of fault or liability, pays in excess over the customer's insurance policy.
"Direct Primary" - Also covers damages regardless of fault or liability and is primary insurance, even if the customer carriers their own policy.
Direct Primary provides broader coverage and typically is more expensive than both the legal or direct excess options. You can choose to have your garage keepers option cover "Specified Perils" or "All Risk/Comprehensive Perils". As with all tow truck insurance coverage, be aware of any exclusions written in your liability policy.
The limits and deductibles you choose for your garage keepers liability coverage option will determine the maximum amount of coverage available on a per-incident basis. Discuss with your insurance agent appropriate limits and deductibles you should choose to adequately insure your towing operations. Consider how your limit might affect you in case of catastrophic loss. Limits offered will vary state-to-state and between insurance carriers; likewise for the deductibles you choose.
Be certain to periodically review your garage keepers liability coverage with your agent to ensure you have the adequate tow truck insurance coverage necessary to protect your investments and operations.