Tow trucks face several risks in their day-to-day operations. Commercial truckers hauling third-party vehicles typically pay over $150,000 for property damage and bodily injuries following road accidents. However, tow truck companies can combat these risks through sufficient insurance coverage.
Each tow truck should carry $300,000 worth of combined single liability insurance covering accidents that result in property loss or damage (excluding on-hook cargo), bodily injury, or death. Truckers should also consider on-hook coverage. This policy covers the damages that any on-hook vehicle sustains during the haul.
Having sufficient tow-truck insurance coverage protects you from:
Do not limit yourself to state-mandated tow truck insurance requirements. Increase your coverages accordingly if your company hauls high-value private vehicles regularly. Otherwise, you might end up paying for road accident damage out of pocket.
Are you not sure whether your tow truck business can afford insurance? Assured Standard can help you do the math! Use our brief explanation of the average cost of tow truck insurance premiums as a reference.
Ora has been working in the insurance industry for close to a decade, which means she’s dealt both with clients and insurance providers.