Operating a tow truck is too risky because drivers are not only liable for the safety of the client’s vehicle but also for their own trucks. Here, tow truck insurance proves to be advantageous in covering all the likely risks a trucker faces on the road. However, you should know what type of coverage you need for your tow truck. Give your valuable read to this post and learn what sort of coverages you should opt for!

The roads are getting busier and riskier with each passing day. If you are thinking of starting a towing business or already own it, then you need to shield your operations with the right truck insurance. Operating a tow truck is inherently dangerous because the person behind the steering comes across many possibilities on the road such as theft, impairment of clients’ vehicles, inclement weather conditions, etc.

Accidents happen and operating a tow truck is a risky line of trucking.  Anything can happen while towing heavy-weighed vehicles from one end to another. Not only on the road, if you provide a storage facility after towing the vehicle then your policy should comprise more coverage to shield your client’s assets off the road as well.  That’s why having adequate tow truck insurance is crucial.

What type of coverage do you need for your tow truck?

Tow truck insurance is a specific coverage that protects towed vehicles against all likely risks while operating on the road as well as stored in the repair station. It not only protects you against lawsuits and property damages but also safeguards the towed vehicle from the dangers you might encounter on the road. Businesses that carry out towing operations require certain types of coverages to safeguard their clients as well as their own assets. Such as:

Auto insurance liability

This coverage is a basic kind of insurance that protects liability on your part. For instance, you are towing a vehicle and the rope of the pulley breaks. The vehicle hits the road with momentum. It becomes badly damaged followed by a loud thud. The car driver who was near the tow truck also got impacted and suffered a bad physical injury.

In this case, auto insurance liability comes to play. It provides dual coverage i.e. property and bodily injury. This coverage not only pays for the damages to your client’s vehicle but also for the passersby’s property and bodily injury that gets impacted in the incident.

Medical payment coverage

We already know that medical costs are skyrocketing. Even the tiniest injury and simple medication can cost you thousands. When your trucking business involves towing vehicles from point A to point B, you need to take medical payment coverage for your own good.

Medical payment coverage pays for all the medical expenses that you suffer in an accident. When you cause bodily injury to a third party while towing a totaled vehicle, this coverage pays for all such outlays. This type of insurance comparatively provides wide medical coverage for physical injuries than auto liability insurance.

Physical damage coverage

The auto liability insurance and medical payment coverage only address the damages caused to a third party or owner of the towed vehicle. But you should think of protecting your operations and covering them from all the likely risks. Let’s assume that you are towing a vehicle in the middle of the night when roads are entirely dark and there is an intersection coming in the next few meters. Suddenly a car rams you that causes damage to your tow truck and the driver operating it.

This situation is a nightmare for any trucking business. Here you are supposed to take care of the expenses for bodily injuries suffered by your trucker but also the damages that your truck has faced. You can cover these areas with physical damage coverage.

On-hook towing coverage

This coverage is one of the essential coverages to have when you operate a tow truck. For instance, when the towed vehicle gets damaged in the towing session, this coverage proves to be very beneficial. On-hook towing coverage not only pays for repairing the truck but also replaces it when it becomes completely irreparable.

Garage keepers legal liability insurance

This coverage is important for you if your towing operation includes storage services. When you keep your client’s vehicle in your custody, possibilities such as theft, man-made errors while servicing the vehicle, and other types of damage can be costly. You can protect your client’s vehicle with garage keepers’ legal liability insurance. It pays for all the damages caused to your customer’s vehicle when it’s under your custody. This coverage depends on the number of vehicles you keep in your custody and the location of the storage.    

Worker compensation coverage

Your driver and other employees are also a vital part of the trucking business. As a wise tow truck business owner, you should protect the livelihood of your truckers followed by an accident. Worker compensation coverage protects your drivers against physical injuries suffered during an accident. It pays for their medical expenses, pays lost wages (a portion), and even provide death benefits (which happened during an accident) to the deceased family.

To conclude

From rescuing vehicles from incidents and helping them to pass through extreme weather to placing illegally parked cars in the correct place. The tow truck business operates uniquely. If you are operating a tow truck, other than you no one understands the number of risks you come across each day. You are not only liable for the safety of your client’s assets but also required to protect your own investment.

Carrying commercial truck insurance works in your business favor if you shield your day-to-day operation with the right set of coverage. All the aforementioned coverages are good to have for the tow trucking business. Understand each coverage’s benefits and the level of protection it provides. Contact a reliable commercial truck insurer that provides all these essential tow truck coverages at the best rates and carry your towing session with great confidence!

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