What Type of Insurance Is Needed for a Tow Truck?

October 9, 2021 11:30 pm Published by Leave your thoughts

You want to keep all your trucks on the road so that your business remains operational and generates profits—but it is a smart idea to prepare for the unfortunate possibility that one of your tow trucks will get into an accident.

If you’re wondering about tow truck insurance types, then read on.

Do tow trucks need insurance?

The answer is that they do. Whether you run a tow truck company or an auto repair shop that offers towing services, getting insurance coverage is good practice and, in many cases, is legally required. Think about it: Towing is dangerous, difficult work that could result in injuries and property damage. You want to have coverage to keep your company’s liability as low as possible.

Tow truck plans should be designed to cover the following:

  • Auto liability: This includes bodily injury and property damage coverage. This covers the damage or harm your company might do to anyone else.
  • Medical payments insurance: This will cover the medical bills for anyone in the vehicle.
  • Physical damage coverage: This is for the damage done to the truck, regardless of whether it’s due to an accident or not.
  • Uninsured or underinsured motorist insurance: This protection comes into play if a driver who doesn’t have adequate insurance is the cause of the wreck.

Other types of insurance tow trucks may require

Beyond typical tow truck insurance, you will want to consider the benefits of other coverage. Like most insurance, it doesn’t seem necessary until you really need it:

  • Workers’ compensation: This insurance protects your workers. When one of your employees is injured on the job or becomes sick due to their job, then workers’ compensation kicks in and covers medical bills. It will also cover a portion of lost wages if the person is unable to work and provide benefits to the employee’s family if they die on the job. Keep in mind that towing is a dangerous job, so, at some point, your company may need to use this insurance. In fact, many states require towing companies to have workers’ comp
  • Garage keepers’ insurance: Your tow company will likely keep other people’s vehicles on-site during repairs. This is an added responsibility for your business. Garage keepers’ insurance will provide coverage in the event that something happens to a vehicle on your premises.
  • Excess liability: This coverage is in addition to a typical insurance policy. If you exhaust the limits of an auto liability policy, then excess liability will kick in. It provides peace of mind for a low annual premium.
  • On-hook/in-tow: Your tow company is constantly moving other people’s cars. That’s where this insurance comes in: providing protection if something happens to the car during transport.

When you’re searching for best-in-class truck service, then turn to the pros at Complete Truck Service, Inc. We’re based in Wytheville, VA, providing mobile truck repair, heavy-wrecker truck services, semi truck and trailer repair and much more. Give us a call right now to learn about our comprehensive truck services and request a free quote.

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