What Is Towing Insurance? 4 Interesting Coverage Options!

Do you particularly wonder if what is towing insurance? As you might have known already, towing firms often participate in hazardous actions as part of their normal operations. Towing insurance is a type of business insurance covering a wide range of possible losses.

Tow truck drivers must be protected against frequent events that may happen on the highways or on corporate premises, from car rescues on busy routes to accidents in harsh weather.

what is towing insurance

While towing insurance is often associated with tow truck drivers, other businesses, including suppliers of roadside services, vehicle rescue, as well as sale trucks, car body shops, car club contractors, and mechanical repair shops, may also benefit from full protection. So, what is towing insurance?


Towing Insurance Coverage Options

Every time the tow truck touches the floor, the driver faces additional hazards and responsibilities. Towing insurance may assist safeguard an enterprise from expensive losses that may impair its end. Most commercial tow truck owners and operators are obliged by law to have a certain amount of liability insurance policy to protect all drivers, customers, and vehicles.

Since not all towing insurance plans are similar, it is vital to talk with a skilled insurance representative about your choices. Some of the most common tow truck insurance choices are as follows:


#1. General liability coverage

This type of insurance is a requirement for professionals in the towing business. Insurance for general liability typically covers bodily injury and property damage caused by an engine operator during work. Most states have minimum requirements for liability coverage. In some instances, a driver of a tow truck may be held responsible for damages such as, where the driver of a tow truck is found to be in an accident failure, damaging the motor car towed, injuring a passenger in the car, or damaging another motor vehicle on the road.


#2. Medical expenses coverage

Medical insurance may cover any related medical costs where a tow truck driver or truck passengers are injured in a tow truck accident. Tow truck drivers often serve the people for whom towing services are provided. It requires the purchase of medical insurance. This type of insurance is optional but recommended in most jurisdictions. On the other hand, liability insurance is required most of the time.

Medical payments insurance frequently covers health insurance deductibles, hospital and doctor visits, x-rays and surgery, emergency and ambulance expenditures, as well as professional nursing services.


#3. On-hook towing coverage

This is a type of towing insurance covering you during your stay. The towing insurance policy for towed cars pays to repair or replace damage caused by defined hazards. Typically, on-hook towing coverage covers vehicles damaged by fire, collision, explosion, theft, or vandalism when being carried or pulled by a tow truck driver.

To qualify for on-hook towing insurance, a towing business must have liability insurance. But this is limited to certain types of vehicles. Most regulations prohibit the carrying of a car behind a mobile home, the towing of antique cars, yachts, or racing wagons for personal use, and the transfer of business owners’ own vehicles or of company-owned vehicles.


#4. Physical damage coverage

Physical damage insurance covers repair costs for a tow truck irrespective of who is responsible. When a tow truck is financed, the owner of the company will almost always have to get insurance for physical damages. The coverage of physical damage covers a wide range of events, including an impact on another vehicle or a falling tree limb. Furthermore, the three main coverage types included in most physical damage policies are comprehensive insurance, collision insurance, and fire and theft insurance.


How Much Does A Towing Insurance Cost?

Prices of towing insurance greatly vary depending on the selected insurance provider, the number of vehicles in the fleet, their location, and other variables. The towing insurance is not the same across different trucks: the larger and costlier the truck is, the more expensive the insurance will be.

Tow trucks are extremely costly to maintain and repair, which can have an impact on insurance costs. Do not base your decision solely on cost when comparing insurance plans though. Do not just compare plans at different prices to ensure the appropriate level of coverage but it is also wise to take note of what insurance covers and what it does not.  For additional information, read here on how much is insurance for a tow truck.



Who Needs Towing Insurance?

Since no two towing truck firms are similar, one coverage choice may not be suitable for another. Any business providing professional towing services, in general, should consider buying tow truck insurance. If I were you, read on why should hire a professional towing service for your business.

Regardless of how many years a tow truck driver has experienced, a collision or another type of disaster may happen at any time. The company is vulnerable to major financial losses. Insurance is a simple method to safeguard any company owning or operating tow vehicles, such as flatbeds, hook, and chain tow trucks, or towing trucks for wheel lifts. Anyways, you can read here on what type of insurance do you need as a tow truck company.


It’s A Wrap!

Now that you know what is towing insurance, contact an expert insurance specialty agency. General liability insurance is not always sufficient to prevent costly losses for towing companies.

With that being said, many towing companies are relying on broader coverage choices including medical insurance, towing insurance, and physical damage insurance. For more articles about insurances, read on how to start a car insurance business and why is car insurance important. Thank you for reading! We hope that you learn something.