4 Types of Coverage You Need for Your Tow Truck

There’s some things you can’t predict or prevent. That’s why all drivers need roadside assistance from time to time. The increasing need for roadside assistance is what makes the tow truck industry so sustainable and lucrative.

However, there’s no denying the industry’s obvious risks. In fact, the towing sector is one of the riskiest businesses out there. From property damage to bodily injury, your fleet needs quality insurance coverage to avoid financial loss and to protect the business, clients, and drivers.

In this article, we will discuss four important insurance coverages you need for your tow truck.

4 Types of Coverage You Need for Your Tow Truck

Bodily Injury Liability

Tow truck operators are just as capable of getting into accidents as anyone else. However, they operate very large vehicles that can cause quite a bit of damage. This insurance coverage will pay for the medical bills of the injured party in an accident that was one of your driver’s faults.

Property Damage Liability

Property damage liability covers the damages done to the other party’s vehicle in an accident that was one of your driver’s faults. This covers the other driver’s vehicle and any other structures damaged in the process, such as a fence or building.

It’s worth mentioning that this insurance doesn’t cover any damage done to the tow truck or the vehicle it’s towing.

Collision Coverage

Collision coverage pays for the damages done to your tow truck even if your driver was at fault.

This coverage may also cover other types of damage to your truck. For instance, if a tree branch or other debris fell and damaged your truck you may have coverage.

On-Hook Coverage

This type of coverage is crucial for every tow truck operator since it protects the car being towed. Your clients trust you as a tow operator to keep their vehicle safe. You wouldn’t want to be stuck paying for the damages to their vehicle, that’s why its important to have on-hook coverage.

With on-hook coverage it’ll cover the costs to repair the vehicle and bring it back to its original state.

Summing Up

If you run a tow truck business, its important to invest in the coverage types mentioned above to avoid costly damages. Make sure to consult your insurance professional to learn more about the coverages your business needs to protect drivers and vehicles.


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