A lot of businesses have tow trucks even though they don’t do towing for hire. For example, think about an auto shop that has a tow truck or two. They’re not doing towing as their main source of income – they have the shop. This is what could be called incidental towing. This is how you can approach getting insurance if your business does incidental towing.
What is incidental towing?
It’s important to know, first of all, what is considered to be “incidental towing”. It can depend on the insurance carrier you’re talking about. Incidental towing could mean that you only tow to your shop location. It could be based off the percentage of income that the business brings in from towing for-hire versus towing to and from the shop. It could mean that towing is not the main source of revenue for the business. Bottom line is that many carriers see incidental towing businesses as garage risks.
Why it’s important to know if you do incidental towing.
Here’s the deal:
It’s really important to have a detailed conversation about your business with an insurance agent because they need to know exactly what your business does. If you do incidental towing, you may be able to get multiple insurance coverages from the same carrier – and a lot of carriers will actually want you to have multiple coverages from them, including your garage liability and garagekeepers insurance.
There are a few reasons that this is a good thing for businesses that do incidental towing. First of all, you could save money on your insurance. If you have multiple types of insurance from the same carrier, your rates could be significantly lower (especially when it comes to commercial auto insurance). So, that’s a major benefit. Another benefit is you might be able to get a payment plan if you do incidental towing, and you may be able to pay far less money down than if you did towing for hire. So even the way you pay for the insurance could be more manageable for your business. Lastly, having multiple coverages from the same company is convenient, plain and simple. You just have to deal with one insurance company, which is far less complicated than having your different types of insurance with different carriers.
Considerations about incidental towing.
If your business does incidental towing, there are a few things to keep in mind. It’s important to understand that insurance carriers are going to do their research on your business. They’ll look at your website and even your social media pages so they can get an accurate picture of what your business does. They want to be able to assess the risk your business presents and set your rates accordingly.
(All of this is to say that it’s really important to follow the guidelines of the policy. Your policy lays out your agreement with the insurance company, and you have to make sure you’re holding to your end of the agreement. If you’re not staying in line with your policy, that could be a problem.)
And one last thing – it’s also important to keep a clean loss history. Committing to safety at your auto shop can pay off when it comes to your insurance rates. So, try to have a high standard of safety at your business.
Asking and answering the right questions.
Anyway, this is why it’s really important to be clear with the agent about your business. If you get in touch with our team, we may have a lot of questions, but bear with us – we’re trying to help you get the coverage you need at a great rate, and we also want to make sure you have the right coverage for your business. It’s all in a day’s work.