Tow truck insurance is different than your personal automobile insurance. Just like needing insurance for your car, you need coverage for your flatbed and tow truck vehicles whether you own or lease them.
Tow truck insurance offers additional coverage by “On Hook Coverage” or damages to vehicles or watercraft being towed by one of your tow vehicles.
A tow truck insurance policy will normally include liability coverage for personal and property damage and personal injury protection. In addition, the tow truck insurance will also provide collision and comprehensive coverage such as fire and theft. Coverage options vary by company, so you need to make sure that you review these options carefully with your licensed insurance professional.
Make sure your tow truck insurance includes:
Bodily injury liability. This is coverage for damages for which you are found responsible. Coverage limits up to $1,000, 000 are normally available.
Property damage liability. This coverage is for damages for which you or your employees are found responsible. Coverage limits up to $1,000,000 are normally available.
Personal injury. This coverage protects against lost wages, medical payments, and other expenses.
Other coverage to be considered would include garage keepers insurance, which protects the business in the event of damage to a vehicle parked at your garage or lot. We mentioned on the hook coverage earlier in this article which also should be seriously considered.
Other options to discuss with your licensed insurance professional include collision, fire and theft, and other types of comprehensive coverage available to your towing business.
How to Locate a Tow Truck Insurance Agent
While rates are determined on a state-to-state basis and depend upon your specific locale -- zip code, population density -- your agent must also be familiar with other unique variables affecting tow truck insurance premiums, including:
*Type and number of towing vehicles you own: Light single axle, medium and/or heavy-duty dual/triple axle, underlift wreckers, rollback carriers, or another type.
*Type of services you provide and the percentage of your business it represents: Roadside assistance, auto repair, repossession, salvage, impound, rotation, etc.
*Hours of operation: Do you provide 24-hour service or close at the end of a business day?
*What you tow: Vehicles only, vehicles and motor homes, motorcycles, boats, trailers, or heavy equipment.
*Safety Program: What types of programs, usually required by state and federal law for you and your employees.
*Driver Qualification Files: Required by state and federal safety carrier regulations.
*Loss Run History: Usually three to five years worth.
A big part of your tow truck insurance policy will be standard commercial vehicle insurance coverage, perhaps including all or some of the following: Auto liability, auto physical damage, the value of the vehicle, comprehensive and collision, medical payments, and the like.
In addition to the above, a knowledgeable agent will highly recommend these specialized policies unique to your industry:
*On Hook Towing Insurance: Covers vehicles you are towing for damages sustained; does not cover property inside towed vehicles.
*Cargo Coverage: Covers contents and articles inside vehicles being towed or stored.
*Garage Keepers: Covers damage to customers' vehicles while on your lot or in your garage.
*Garage Liability: Covers your premises, products, operations.