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    On-Hook Coverage

    The towing process exposes vehicles to several road risks and hazards. Unfortunately, you cannot eliminate these risks no matter how well you train your tow truck driver. However, you can mitigate the damage by getting a hook towing insurance policy for your towing business. Sufficient on-hook coverage can compensate for any damage that a towed vehicle sustains during the haul.

    Tow truck owner-operators and fleet operators hold the responsibility of keeping the on-hook vehicle safe. Do not blame the tow truck driver. In fact, we encourage using insurance claims to pay for third-party on-hook vehicle damage instead of deducting repairs from the driver's salary.

    What Is On-Hook Coverage?

    On-hook towing insurance policies supplement commercial auto liability insurance policies. They cover the costs to repair any damage that on-hook vehicles sustain while your truck hauls them from point A to B.

    What Counts as On-Hook Cargo?

    Insurers define on-hook cargo as any vehicle attached to your tow truck. Your on-hook towing insurance will only cover the hauling process. Anything that happens to an unhooked vehicle falls under another insurance policy or your out-of-pocket expenses.

    Does a Garagekeepers Policy Cover On-Hook Cargo?

    No, a garagekeepers policy covers damages sustained while the vehicle sits inside your storage facility, while on-hook towing insurance provides coverage during the hauling.

    How Much Does On-Hook Cargo Insurance Cost?

    Most insurers bundle their on-hook coverage with auto liability insurance plans. Insurers have varying add-on premiums, but independent owner-operators can expect their annual tow truck insurance costs to fall somewhere around $600 to $1,000 annually. Meanwhile, large tow truck businesses might shell out $800 per month.

    What Should You Look For In an On-Hook Policy?

    To ensure your business has sufficient tow truck insurance coverage, we encourage owner-operators and fleet owners to consider the following factors:

    • Liability Coverage: Review your auto liability insurance policy before deciding how much on-hook towing insurance coverage to get. You two should cover all the risks your business faces.
    • Policy Limit: We discourage skimping on the policy limit. In fact, higher-risk towing businesses should consider increasing their on-hook insurance coverage limits as well.
    • Insurance Deductible: A high deductible increases the out-of-pocket fees you pay when filing a claim, but it also reduces your premium. Meanwhile, lower deductibles increase your premiums but drop the charges you shoulder during claims.
    • Premium: Every towing business needs a sufficient on-hook insurance limit. However, if your current high-coverage insurance policy exceeds the monthly budget, consider another on-hook insurance company.

    Where Can You Get On-Hook Coverage?

    Dozens of insurers offer on-hook towing insurance in the U.S. Seasoned truckers find having multiple insurance companies to choose from convenient. However, startups often feel intimidated by the sheer number of options.

    To streamline your on-hook insurance shopping, we listed the top three most reliable, reputable insurers on the market:

    Assured Standard has multiple guides on using insurance products to wholly protect your trucking business from road risks. Check our commercial comprehensive insurance review!

    Frequently Asked Questions

    What is a motor truck cargo policy?

    Motor truck cargo insurance is a type of business coverage that protects the freight or commodity being hauled by a for-hire trucker. It covers your liability for cargo lost, damaged due to fire, collision, and striking loads; whether it be caused maliciously by an outside party such as theft or accidents on the roadways with other vehicles.

    What is trailer interchange coverage?

    Trailer interchange insurance makes sure your trailer is covered in the event of damage. It protects trailers from theft, fire, and other physical damages that could be caused by an accident or deliberate act on someone's behalf.

    What is a trip transit policy?

    Trip transit insurance provides coverage for a specific, individual shipment of goods. This type of insurance typically has lower rates than comprehensive coverage plans but also provides higher premiums due to the one-time nature and short-term length.

    What is a garage keepers policy?

    Garagekeepers legal liability insurance provides protection in case a vehicle is damaged by fire, theft, vandalism, or collision. It protects your customer's vehicle when you are keeping it at a covered location for parking and storing their car.

    Is trailer interchange a liability coverage?

    Trailer interchange insurance is a type of coverage available under either the truckers or the motor carrier policy form that covers your legal liability for damage to trailers owned by others. Coverage can also be obtained with an endorsement of your business auto policy (BAP).

    Every towing business needs sufficient on-hook towing insurance coverage. Otherwise, expect to pay out of pocket for on-hook vehicle repairs. Also, do not worry about the tow truck insurance premiums hurting your profits. Even minor dings and dents on a newer vehicle could already set you back by a few hundred bucks, already costing more than insurance does.

    Damaging the vehicles you tow is simply one of the many risks a towing business faces. At Assured Standard emphasizes that businesses need an all-encompassing strategy to mitigate accident risks and damage. Check our tow truck insurance resources for more information.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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