When you run a towing business, you may be in charge of a large fleet of tow trucks, all of which have a chance of suffering significant damage out on the road.
Commercial towing insurance would help in this situation. This type of insurance, which is created specifically for tow truck businesses, is a necessary expense.
With the help of commercial towing insurance, you can rest assured knowing that your assets and drivers will be taken care of in the event of a mishap.
What’s Commercial Towing Insurance?
Numerous factors put your company at risk, but fortunately, you can guard against these dangers with the aid of sufficient tow truck insurance. For instance, because of the complexity of a tow truck and the nature of the job, you’re more vulnerable to damage. Additionally, since they work mostly on the side of the road, tow truck drivers are at an elevated risk of fatalities and injuries.
When you work with an experienced agent you can receive a customized insurance policy with your specific needs in mind. Your agent will first ask you several questions regarding your business. For instance, they’ll need to know the types of tow trucks you have, your hauling radius, the experience of your drivers, and so forth. These factors will greatly determine your tow truck insurance cost.
Do I Need It?
This insurance policy should be considered by anyone who’s planning to incorporate the use of tow trucks in their daily operations, such as:
- Roadside assistance services
- Automobile mechanics and repair shops
- Car dealerships
- Vehicle recovery services
In the long run, it’s more affordable and beneficial to be able to plan and customize your insurance coverage to meet your needs.
There are numerous coverage options to take into account when creating your commercial towing insurance policy. Every towing company needs the next three things.
Your legal obligation to compensate someone whom your business has injured is covered by liability insurance. Auto liability insurance can assist you in covering the costs of repairing or replacing the other party’s vehicle. It’ll also cover their medical bills if injured and your legal fees.
If someone accuses your company of harming them, the cost of legal defense and medical care can quickly accumulate. For instance, if one of your tow truck drivers caused a car accident, your company would be held liable for paying a variety of expenses, including medical bills, legal fees, and repair costs. In this situation, commercial towing insurance is useful.
Tow truck drivers take on an abundance of risk when towing a customer’s vehicle. With all that responsibility, they must take the necessary precautions. During the towing process, there’s a chance the car can be damaged. Since it’s under your care, you’d be responsible for footing the repair bill. Fortunately, that’s where on-hook/in-tow coverage comes into play.
If your tow truck is involved in an accident, physical damage coverage will help you get your vehicle back on the road as quickly as possible. Due to the high cost of tow trucks, you must have adequate insurance to protect yourself if one of your vehicles is damaged. You don’t want to shoulder the significant financial burden of fixing or replacing one of them yourself.
If you’re asking how much does a tow truck cost, refer to our recent blog.