When cars and trucks break down along the road, drivers turn to a local tow truck company to get their vehicle back home or to the nearest mechanic. There are different types of companies that may have a tow truck on hand, such as a towing company or repair shop. For anyone operating a towing vehicle and hauling other cars or trucks, it is highly recommended that auto insurance coverage be extended into towing insurance.
The Common Liabilities
As with any motor vehicle operations, there are common liabilities with accidents, property damage, or personal injury. Regardless of what vehicles you are towing or what roads you drive, there are potential risks that insurance can help you be prepared to face. The more common coverage areas include:
- Medical payments insurance
- Auto liability with property damage and personal injury coverage
- Uninsured motorist insurance
- Physical damage occurrences
The Business Liabilities
In addition to insurance coverage for the actual towing vehicles and travel situations, a towing company may have other insurance liabilities to consider. Depending on the size and scope of your operations, workers’ comp coverage may be required, but at the very least, highly recommended to cover the costs of employee injuries that are job-related. Excess liability extends coverage past the limitations of an auto insurance policy. On-hook or in-tow insurance can protect cars in transit.
These are the foremost insurance considerations for towing companies or truck operators. The cost of being unprepared could destroy your business.