Tow Truck Insurance

Whether you are self-employed or part of a larger company, tow truck insurance is necessary because the risks associated with operating a tow truck company can be significant. Owing to the nature of this business, you will be responsible for the safety of your employees, customers, and the general public. That’s why it’s important to take the time to choose the right type of insurance coverage for your company. Here is an explanation of the different types of truck insurance needed for your tow truck company.

Tow Truck Insurance

General Liability

While you certainly want to protect your company’s assets, there are certain risks that are unavoidable as a towing company. Some of these include bodily injury or property damage caused by your employees, customers, or members of the public. If an incident occurs that results in injury or damage to anyone other than your company, you will be responsible for paying for the damages.

Fortunately, the right type of general liability insurance can protect your business and its employees in these types of unfortunate incidents. This coverage can help you pay for the damages caused by an accident that was not your company’s fault. It can also help protect you from lawsuits filed by individuals who have been injured by one of your employees.

Primary Liability

If you are operating a tow truck company that services public roads, you may encounter situations in which another vehicle is involved in an accident with yours. This can occur for a variety of reasons—ranging from a collision to a breakdown that causes a car to be towed away.
If this happens, you may be responsible for the damages. In these situations, you will want to ensure that your primary liability coverage limits are sufficient. This type of coverage can help protect you if an accident has been your company’s fault. It will help to provide financial assistance in the event your company is found to be at fault.


Collision coverage can help provide financial assistance to you after an accident that is your company’s fault. This coverage will pay for damage to both your vehicle and the other vehicle involved in the accident. It does this by providing a set amount of coverage for each vehicle involved in an accident. It will calculate the coverage for each vehicle and total up the two sets of coverage. If the total exceeds the amount of either vehicle’s coverage, the excess will be paid out.

Cargo Coverage

While many tow truck companies do not haul goods, some may need to do so. If this is the case, you will want to look into adding cargo coverage. This coverage will help protect you and your business if a customer’s car is accidentally towed while you are performing roadside repairs. If a car is towed while your business is repairing it, this coverage will help ensure that you receive adequate compensation.

Theft Coverage

You will want to ensure that your company’s insurance coverage includes theft coverage. While you may be responsible for damages caused by a customer’s theft of one of your company’s trucks, this coverage will help to protect your business. It will help to cover any losses that were a result of a customer’s theft of one of your company’s trucks. It will also help to cover any damages caused by an attempt to steal one of your company’s trucks.

Workers Comp

Some states require businesses to provide workers compensation as part of tow truck insurance coverage to their employees. In states that require it, you will want to make sure that your workers comp insurance includes coverage for on-the-job injuries. If an accident at your company’s workplace results in injury to one of your employees, this coverage can help to cover the costs associated with the injured employee’s medical treatment. It will also help to cover the employee’s lost wages while they are unable to work.

Choosing the right tow truck insurance coverage can be an overwhelming task. That’s why we’ve written this info to help guide you through the process. It should help you choose the right insurance coverage for your towing company. Remember, however, that all of the information is just guidelines. You need to decide what coverage options that are best for your business. That said, we hope that this explanation on tow truck insurance coverages will help you to make an informed decision for your tow trucking company.

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Posted in cmi.