As a business company towing companies also need protection for themselves and their customers. Given the type of services that towing offers, there is a high chance of risks and accidents. Therefore it’s important that as owners of towing businesses, we take insurance coverages that would help us protect ourselves and our customers from damages in case of accidents. It’s vital to take an insurance cover that directly relates to our services so that we reduce our operational costs.

What are the types of coverages for tow companies?

1.   General Commercial Liability Insurance

When people get injured while they are on our properties or during transport and under our care we are responsible for their damages. If our employees cause disruptions to other people and properties, we are also responsible for that. Therefore, we must take general liability insurance that would cover such damages. The risks include body injuries, property damages, medical bills, and legal defense, and judgments. Under this category, there are other subtypes;

• Body Injury liability Insurance  that covers injuries arising caused by business
• Medical Payments Insurance covers medical bills for our employees, people who get hurt under our care in case of an accident while towing, and other auto-related injuries.
• Physical damage coverage will cover the repairs to our tow trucks in case of accidents.
• On-hook Towing Insurance pays for damages to our customer’s vehicles in the event of an accident while towing them.
• Garage Keepers Legal Liability Insurance covers any damages to our customer’s vehicles when they are parked on our premises. 
• Uninsured Motorist Insurance protects us from injuries to us and our clients from damages caused by other people who lack insurance, or their coverage does not meet all of our damages. It also covers damages and injuries due to hit-and-run motorists.
• Tow General Liability Insurance. There are situations when we are charged for damages and injuries that are not related to our covered tow vehicles. This cover protects us if we are legally guilty of such charges.

2.  Business Owners Policy

As a business entity, we need to take cover that helps continue our operations during a calamity. It offers;

• Property Insurance covers damages to our buildings, office equipment, furniture, trucks, and accessories.
• Business Interruption Insurance covers the expenses that we incur in case we need to use other premises because our premises are being repaired after a calamity.

3.  Workers Compensation Coverages

The nature of our works as towing companies poses a great life risk to our employees since they work in unsafe environments and sometimes during unfavorable weather conditions. Therefore we must take insurance that would cover their illnesses, injuries that arise when they are at work.

This cover boosts our worker’s confidence, and it attracts high profiled workers to work for us since they can work peacefully. This insurance covers medical needs and the size of their income if they are temporarily incapable of working.     

4.  Umbrella liability Insurance

This liability covers damages that extend our usual coverages. In situations when the cost of damages exceeds our normal limit, this Umbrella liability comes into play. You can know more about how to conveniently obtain vehicle recovery services alongside the road here.