What Type of Insurance Do You Need as a Tow Truck Company?Posted on Feb 28, 2020
Tow truck companies perform valuable services for their communities. If you own a tow truck company or are considering purchasing one, tow truck insurance is a necessity. The insurance needs of tow truck companies vary significantly from one company to the next.
Working with an independent insurance agency, like Otterstedt, can help you customize your insurance policy to meet your unique insurance needs.
Who Needs Tow Truck Insurance Protection?
Besides general tow truck companies, there are other related businesses that need tow truck insurance. In fact, there are quite a few businesses that could benefit from this essential protection, such as:
- Roadside assistance companies
- Auto body shops
- Repair shops
- Salvage and auction companies
Virtually any company that provides towing services to customers or uses them internally needs many of the types of protection mentioned below.
Types of Insurance Coverages Tow Truck Companies Need
Many types of business insurance protections are available for tow truck companies. Finding the right combination of protection types and coverage amount is a bit of an art form. You don’t want to pay for more coverage than you need, but you also don’t want to miss out on essential coverage and find out too late that it’s missing.
Working with a trusted, independent insurance agency, like Otterstedt Insurance Agency, can help you get the coverage you need without adding in excessive coverages. These are some of the types of coverage you’ll need for your tow truck company.
Business Owners Policy
You are, first and foremost, a business. You share insurance protection needs with countless other businesses. Business owners policies (BOPs) over basic insurance coverage for your business that protects:
- Property insurance. Covers buildings, office equipment, furniture, and inventory of supplies, trucks, and equipment.
- Business interruption insurance. If your business is damaged in a manner that requires you to cease operations while repairs are made, this insurance helps to pay for expenses of operating from a different location as well as lost income.
- Liability insurance. The BOP provides basic liability protection that many business owners view as a starter plan for general liability. Tow truck companies, in particular, will want to invest in additional general liability protection as well as other liability insurance types.
That is just the starter for tow truck companies, though.
Liability Insurance Coverage Options
Liability insurance helps protect your business for various things that might happen to other businesses under your care, during transport, etc. These are some liability policies you may require for your tow truck company.
- Tow truck liability insurance
- Medical payments
- Physical damage insurance
- Garage service insurance
- On-hook towing insurance
- Excess liability
- Umbrella liability
- Cyber Liability
The importance of having the right kind of liability insurance for a tow truck company cannot be overstated. Not only does your liability insurance protection help to protect you from the damages awarded against you. It also helps to cover your costs in defending your business, drivers, etc. in court if you are sued.
Workers’ Compensation Insurance
Another type of insurance that all towing companies that hire employees require is workers’ compensation insurance. This insurance protects your employees if they are injured, become ill, or are killed while performing their duties for your business.
Tow truck drivers work in all manner of weather conditions and face danger any time they are behind the wheel. This type of insurance provides them and their families with peace of mind their medical needs will be tended to, and a portion of their income replaced if they are suddenly unable to work.
Not Sure Where to Start? Otterstedt Insurance Agency to the Rescue
Otterstedt Insurance Agency has been serving the needs of New Jersey businesses and drivers since 1919. Now, in our second century of service, we are here to help you get the proper protection for your tow truck company.