Tow truck companies provide valuable services to motorists who are stuck, no matter what time it is. However, operators face different risks that could make your towing company worthless.
How can you ensure that your tow truck operators and client property are safe when towing?
Tow truck insurance is essential if you are starting a business. This insurance covers you for lawsuits and gives you the peace of mind that your assets and workers are protected.
This guide will explain the benefits of insurance for towing companies and show you how they can help your business.
Businesses That Need Tow Truck Insurance
Tow trucks are more than just moving vehicles to designated workshops. These trucks are likely to be found in the following locations:
- Auto body shops
- Dealership shops
- Businesses that provide roadside assistance
- Auction companies
- Repair shops
These businesses are at greater risk of being towable by cars and require the right coverage.
Insurance Types for Tow Trucks
You can choose from a variety of coverages offered by towing companies that can be tailored to your specific needs. It can be difficult to find the right coverage at an affordable price. Visit https://movewithmovers.com/what-to-do-if-your-car-breaks-down-on-the-road-by-alive-jackson/ to read about What to Do if Your Car Breaks Down on The Road By Alive Jackson.
While no business wants to be without essential coverage, nobody wants to pay more.
Working with an independent, trusted insurance agency like the Central Carolina Insurance Agency will ensure that you get the right coverage. Here are some common coverage options for towing trucks if you aren’t sure which coverage is right for your business.
No matter how careful you run your business, accidents are bound to occur.
To be covered for transport and other towing activities, you will need a liability insurance policy. The following are common liability policies for businesses that tow trucks:
- Medical payments Insurance: Covers medical expenses for both the passenger and operator arising out of injuries sustained in an accident
- Cargo insurance or hook: This covers damage to the towed vehicle
- Auto liability coverage: Covers for damage to other cars caused by the tow truck operator
- Uninsured Motorists policy: Provides coverage for motorists who do not have adequate or nonexistent coverage.
It is hard to overstate the benefits of purchasing the right insurance. The policy protects you from any damages that may be brought against you. It also defends your business and operators in the event of a lawsuit.
What happens if your underlying insurance fails to cover the damage? Additional coverage that covers you if your primary protection is exhausted, such as excess liability insurance.
You don’t need to worry if your damage costs exceed the auto liability coverage. The excess liability policy will take over from the place where auto liability was.
Although the policy has a low annual premium, it can provide peace of mind in cases where there is significant damage. The cost of insurance for a towing company is small when compared to the amount it can save you in an accident.
Workers Compensation Insurance
No matter how many employees you have, it is essential that you have worker’s comp coverage. This will protect your employees in the event that they are injured, sick or die while working for you.
Reliable workers are a loss for your business. But, the families and dependents of these employees will suffer more. These employees are covered by your company so that their medical bills can be paid and their income can be replaced if they become disabled.
This coverage is mandatory by the state. It may surprise you to learn how much one incident can cost your company. The policy may also provide death benefits for the immediate family in the event of an accident on the job.
Business Interruption Insurance
Natural disasters can cause your business to shut down for several days or even weeks. If you are not insured, it may be impossible to recover revenue lost during closed-down days.
You should consider purchasing business interruption insurance if you live in an area that is susceptible to weather problems.
The policy’s goal is to keep your business afloat and ensure that you are able to continue to operate. You can recover a portion of the revenues you would have earned if you had been open.
On-Hook Towing Protection
It’s impossible to predict what might happen while you are towing your vehicle. You may not be able to afford the cost of repair if there is an accident or the vehicle is damaged. An on-hook towing policy can protect you from any liability that may be incurred while towing a vehicle.
Your business’s survival may depend on having the right coverage for on-hook towing. This coverage might not seem necessary but your insurance provider can customize it.
Coverage for Physical Damage
Trucking liability insurance must be purchased, but additional coverage for physical damage can help your company save even more. While you should warn your company about damaging the property of others, don’t forget that your equipment and vehicles are valuable and costly too.
Your business equipment, trucks and cranes are protected against unforeseeable accidents such as vandalism, fire, collision or vandalism. It also covers damage to your truck, in addition to the other vehicles.
Garage keeper Policy
Do you repair vehicles as well as towing? Garage keeper’s insurance can protect you from any damages, regardless of whether you are a mechanic or store customer vehicles in the garage.
This insurance policy covers the liability for damage to vehicles that are being repaired in the garage.
Find the Best Towing Insurance Today
Do you need an experienced, trusted insurance professional who is an expert in towing?
Central Carolina Insurance Agency protects businesses from liability and claims that may be made against them. We use proven methods to analyze your business and tailor the right coverage for you.
Don’t delay! Get a no-obligation quote today to get the best insurance coverage for your towing business.