Property damage is a big risk for towing companies. Gain financial protection against customer lawsuits and vehicle accidents with tow truck insurance coverage designed for your specific risks.
Operating a tow truck business can be quite a challenge. After all, they rescue cars from accidents, help cars pass through inclement weather, and get illegally parked vehicles to the right place. As the tow truck is also at risk while it does its job, every towing business must not fail to sign up for tow truck insurance.
In reality, not only are the trucks at risk, their drivers are also highly exposed to accidents, injuries, and even death. In the Emergency Responder Safety Institute's Struck by Vehicle Fatality Report in 2019, 14 tow truck operators were struck and killed on the job. Not only that, but the American Automobile Association also issued a report that a tow truck driver is killed every six days, based on reports in early 2020.
Every type of company has its own version of business insurance. This is because every industry comes with its own set of risks, conditions, and safety requirements. But for something as dangerous as taking control and fixing difficult road situations, tow trucks deserve that extra protection through customized towing insurance policies.
This need should be non-negotiable for tow truck owners. Think about this: Road transportation is the most used way to move around the country. Tow trucks, admittedly, are larger vehicles, but their size makes them more vulnerable, especially in their circumstances.
Every year, the towing industry grows, as more vehicles populate the roads. This also means that every year, accidents and collisions drive casualties up. Towing services providers must be extremely careful in ensuring their insurance coverage options give them the best protection they can get.
For business owners with businesses like roadside service providers, auto mechanical repairs, auto club contractors, rotational towing, full-service stations, auto salvage and auto haulers, and auto body shops, here are the most common coverages to look for in commercial tow truck insurance.
The scope of tow truck liability insurance includes physical injury that the operator or driver can cause to other people or property at the time of an accident.
The amount of liability coverage will be dependent on the laws of the state. Furthermore, a driver that can be considered liable may encounter one or more of the following:
In addition to the bodily injury and property damage coverage, liability insurance can also include compensation for court costs and other legal fees involved in a liability claim.
Physical damage coverage is an insurance policy that will pay for damages a tow truck suffered, regardless of which party is at fault. Having this type of coverage is a requirement for most lenders and financial institutions when purchasing a truck.
This type of coverage provides support and protection for damages that a tow truck can suffer from aside from being involved in collisions. Most of the time, the claims revolve around damages from fire, objects, natural disasters, vandalism, and theft.
A very important coverage, this type of insurance will settle medical payments incurred for a tow truck operator, driver, or passengers who suffered injuries for being in the insured truck. Having this type of coverage is essential as healthcare and recovery can be costly and this will provide security to the truck's passengers, which usually include the owners of the towed vehicle.
Nobody wishes for this unfortunate event, but there is still a possibility that a towed vehicle can suffer from damages during the towing session. Most of the time, this aspect of tow truck insurance covers the repair and replacement costs for damages, including ones caused by theft, explosions, fire, vandalism, and collisions.
Tow truck operators and business owners must prioritize on-hook coverage as it protects the business against worst-case scenarios.
Though most vehicles on the road ensure their insurance coverages, there are times when a vehicle a tow truck encounters may not have enough liability insurance to cover all their damages. In the worst case, they might not have any insurance at all.
In these cases, uninsured and underinsured motorist coverage can protect tow truck businesses. This towing insurance provides compensation for when a tow truck business is not the one at fault, yet the guilty party does not have enough insurance, or when a tow truck falls victim to a hit-and-run situation.
Though this part is optional, a tow truck company can opt to get garage liability insurance. This is a coverage focused on companies that offer service stations. At its core, garage service insurance will pay for damages for serviced vehicles while they are parked or stored for repairs.
Bolster your risk management strategy with the following straightforward, actionable tips to minimize your tow truck insurance costs:
Avoid skimping on insurance. Keeping your premiums to a minimum reduces your monthly expenses, but operating underinsured compromises your long-term continuity plans.
Remember: road accidents cost far more than any insurance policy. In the worst case, property damage and bodily injuries could set your business back by over $150,000.
If you own a commercial truck business, you should never allow yourself a period of time without commercial tow truck insurance — this is a necessity. Without this protection, business owners open their doors to millions of expenses that can kill their business in just one click.
On average, tow truck insurance tends to be more expensive than your auto insurance, mainly because of the higher risks. For minimum state requirements, tow truck companies may cost around $1,000 dollars for trucking insurance. However, the best coverage inclusions might charge around $5,000 for insurance coverages.
For tow truck insurance needs, the easiest way to start is to study different insurance options and ask for a quote. Weigh down the benefits offered by each insurance company and talk to agents that will connect the company to the best tow truck insurance provider.
The FMCSA is a federal government agency which provides safety regulations for Commercial Motor Vehicles to reduce crashes, injuries, and fatalities.
Looking for a tow truck insurance provider for your company? Let Assured Standard help you with that today!