As a towing company, you face a lot of risks and potential liability that other businesses don’t have to deal with. The repo company gave you the wrong address. Someone gets mean in the parking lot while your driver’s just doing his job. Another towing company’s trying to edge you out of a territory.
And then there’s the fact that when you take a call from a stalled car on a busy Interstate, you never know what to expect.
Some tow jobs just involve higher risk than others.
Let’s explore 4 smart tips to prepare for those high risk towing clients.
1. Assess Your Risk
Know what you’re getting into. If you’re moving into a new area, consider what types of tow jobs you’re doing these days. Are you towing stalled vehicles or wreckage? Are they repos or illegal parkers? Are you hauling cars for an auto club or body shop? Are you storing client vehicles on your property and for how long?
Each of these carries different levels of risk. Protecting yourself starts with evaluating what that risk is.
2. Invest in Proper Training Programs
This isn’t always easy, especially if you have a high turn-over. But your drivers are your first line of defense against liability claims. Investing in your employees is also one of the best ways to reduce turnover.
In addition to knowing their truck and the mechanics of towing, a well-trained driver will:
- Keep an open line of communication with the office and a third-party client
- Anticipate risky situations and take precautions
- Communicate with the client being towed professionally and politely
- De-escalate an irate individual
- Move quickly to avoid confrontation
- Manage the stress of a situation and stay calm
- Take pride in the work
- Take precautions not to cause further damage to vehicles
3. Realize that Some Tows Are “Us Vs Them”
If your towing business is handling a lot of repos and parking law violators rather than stranded motorists, your liability risk is higher. You’re already dealing with an upset person who just had their car towed. If there’s a ding or dent in their vehicle, they may try to say your driver caused the damage to get a free repair and offset impound fees.
Recognizing this added risk for what it is will help you plan for high risk towing.
4. Review Your Coverage Limits
All tow truck insurance policies have coverage limits for various types of liabilities. Review them regularly to make sure they’re still meeting your towing fleet needs.
If you haven’t reviewed this in a while, chances are you don’t have adequate coverage. You may be surprised.
A lot changes in five or even two years when you’re managing a successful towing company. You may be doing more high risk towing jobs than you were six months ago. Don’t wait until you have a major claim to find out you’re underinsured. Don’t risk the health of your business by not reviewing your coverage.
If you’re no longer getting the coverage you need, it’s time to explore how to protect yourself with the right amount of coverage and get the best price doing it. That’s where we come in. To get tow truck insurance quotes fast, fill out our easy online form or give us a call today.
