What Are the Benefits of Having a Tow Truck Insurance Policy?

What Are the Benefits of Having a Tow Truck Insurance Policy?

Towing is a one-of-a-kind service that comes with unique and distinctive risks. Running a towing business is quite demanding.

Because you are not only responsible for the on-hook cargo but also liable for your own tow truck damages.

Roads are more busier and dangerous than ever now and here taking care of two massive assets (own tow truck and clients vehicle) becomes very challenging.

Here tow truck insurance helps you attain financial balance when the on-hook cargo gets damaged due to any mishap.

Not only this, there are several other benefits that this coverage offers to the insured. In this post, we will understand them each and make a more informed decision for adding a protective layer to your towing operations.

What type of insurance does the tow truck company require? What benefits does each offer?

As there are several insurance policies that are available for towing businesses. You need to find the right sort of coverage and limit that protects the on-hook cargo and towing session.

If you end up taking unnecessary addons on your coverage then the commercial truck insurance cost will go higher which would become uncomfortable for you to manage its payment.

Whereas taking inadequate coverage will not offer the right amount of protection at the time of claim. If you don’t want to fall into either of these categories, the following are the types of liability coverage that you need as a towing services provider.

• Tow truck liability coverage: This coverage protects the towed vehicle against all the damages that can occur followed by an accident.
• Physical damage insurance: Although tow truck liability coverage covers the damages of a hooked vehicle, it doesn’t protect your tow truck from the likely risks. Here physical damage insurance pays for the loss your tow truck suffers in an accident.
• Medical payment: This coverage pays for the medical expenses of your drivers who get physically injured in an incident.
• Lawsuit coverage: Damages to the on-hook cargo can lead to a lawsuit by the asset owner. This coverage pays for all the legal expenses that come with a lawsuit.
• On-hook towing insurance: This policy pays for the on-hook cargo or pulled vehicle damages in an accident. It also covers the loss that happens while hooking or unhooking the cargo on your tow truck.
• Comprehensive and collision coverage: Damages can rise not only from the collision but also from other hazards like fire, explosion, theft, natural calamities, weather conditions, etc. If you take this coverage you protect your clients as well as your vehicle from these risks on the road.
• Garagekeepers legal liability coverage: This policy is beneficial for those who provide repair services to the client’s vehicle. It covers the damages that occur to the client’s vehicle in your care and custody.

Businesses that provide road assistance, run stations with comprehensive vehicle service, repair shops, auto clubs, towing services, etc. require tow truck insurance to protect their client’s vehicles fully.

Now you have understood what type of coverage you require as a towing services provider. We will quickly learn some of the major benefits that come with tow truck insurance.

Protects client’s investment

Your client’s vehicle attached to your tow truck is one of the biggest investments for them. If any damage or loss happens to it, the financial loss that arises from the mishap is very huge.

Here tow truck insurance proves to be very beneficial in protecting the towed asset and gives monetary support when such incidents occur.

Guards business reputation

Consistent damages to the on-hook cargo and the financial challenge that comes after the loss can adversely impact your business reputation.

This substantially shakes the reliability factor of your towing services. Trust is an important factor in the towing business, if you lose it people will not opt for your services. As a result, your survival in the trucking industry would become highly dubious. 

Offers huge financial support

Whether the accident causes minute loss or major damages, it can make you suffer financially. The cost of repairing a vehicle or a truck can dig a deep hole in your wallet. Tow truck insurance offers a financial cushion when your client’s vehicle gets damaged in an accident.

Covers risks on the road

Roads are dangerous, no matter how precautious your tow trucker is, accidents are inevitable. Risks like theft, collision, fire, explosion, extreme weather conditions, vandalism, etc. can arise any day.

Such hazards can cause massive damage to the on-hook cargo and your own tow truck. To protect the entire towing session, you require adequate tow truck insurance coverage for your business.

Peace of mind

If you provide a robust layer of protection to your towing operations, you will gain great peace of mind.

You can concentrate on other vital business activities that need more attention than just worrying about the towing session.

Legal operations

Carrying a tow truck insurance is not only protective for your business but also state mandated. Carrying this coverage is mandated in almost every state for businesses offering towing services.

If your business offers post-towing services then you should carry garage keepers’ liability coverage to protect your client’s vehicles that are kept under your custody and care.

Summing Up

Towing is a very challenging business. From dragging heavy cars and helping them pass through extreme weather to get illegally parked, totaled, or stationary cars to the right place.

This job is one of the most challenging in the trucking industry. The entire towing session is exposed to a huge amount of risk on the road. Here tow truck insurance offers great financial help if any likely danger struck the pulling session.

If you want to ensure the long-term success and viability of your tow trucking business, carrying adequate tow truck insurance is essential.

Take the right add-ons that suits your requirement and give your towing operations a robust shield of protection.With this coverage, you can lower the cost of the risk that can hit your towing business any day.