GARAGE LIABILITY INSURANCE
What is garage liability coverage?
As the name suggests, garage liability coverage protects your garage from losses that happen because of the day-to-day operation of your tow truck business. Basically this means you’re protected against any damage or harm that you cause someone else because of the operation of your business - including the services you provide.
I don’t have a garage. Why would I need garage liability insurance?
Yes, it might seem like it doesn’t make sense, but you still need to consider getting garage liability. Like we said, garage liability coverage is the insurance that covers the day-to-day operations of your towing business - but it doesn’t require a physical garage location. Towing is a service industry, meaning that people are depending on the work that you do and the services you provide. But sometimes we make mistakes. We’re all human. There may come a time when your business’s services cause unintentional harm to someone, and that’s where garage liability comes into play.
What scenarios would garage liability cover for my towing business?
Say that you have a 24-hr roadside assistance program. You don’t have a garage. You’re just in the business of giving people help if they get stranded on the side of the road. So, you get a call from a gentleman who has a flat tire. You cruise out to the place where he got stuck. You change the tire, no problem. The guy thanks you gratefully and drives off. You get back in your truck, satisfied with a tire-change well done.
The driver, however, only gets five miles down the road before the tire that you just changed comes off of his car, causing an accident. You made a mistake while changing the tire, and your services caused harm to the driver (and his car.) When you find out you feel awful, even though the driver, fortunately, wasn’t seriously injured. But at least you know that your garage liability will help the driver out - it will cover the expenses (up to your limit of coverage) that you’re court-ordered to pay, which could include things like medical bills. So, the driver gets the money he’s due and your business doesn’t have to foot the bill.
So, you can see why garage liability isn’t just for those tow truck or wrecker businesses that have garages. It applies to many different types of operations - like our hypothetical 24-hr roadside assistance business. Garage liability is crucial because even when we have the best of intentions, mistakes happen.
How much does garage liability insurance cost?
The amount of garage liability that your business needs depend on your business and the kind of work that you do. Your tow truck business is unique. There are a lot of different factors that go into determining your rates, so why not let us help you shop around for some quotes? We’ll get some information from you so that we can get you the most accurate quotes possible for the garage liability insurance you need for your tow truck or wrecker business.
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