Do tow truck businesses need insurance?

 Yes, tow truck businesses need to have commercial auto insurance. Generally, drivers towing a vehicle for repairs will need insurance regardless of whether they are picking up cars on city streets or the highway.

What are some notable risks facing tow truck businesses?

• Accident: This can result in an injury to the tow truck driver, another driver, or property damage. The tow truck company could be held liable for the costs of repairs or medical fees. Legal fees may add another costly component. An insurance policy that contains bodily injury liability and property damage liability would help cover the company’s costs.
• Truck Damaged or Stolen: If one or more of your tow trucks is damaged or stolen it could leave you with hefty fees. Policies that contain collision coverage and comprehensive insurance would help a company with replacement costs and accidents not caused by a collision such as a fire, theft, vandalism, etc.
• Client Vehicle Damaged: One of your drivers could be towing a vehicle while something happens to a client’s car. You’ll need on-hook or in-tow insurance to cover these instances. It’s also known as garagekeepers insurance coverage in some states.
• Theft: Theft is a risk when you are storing vehicles on the property. To help prevent theft you can install outdoor lighting or a fence around the property.
  

Which insurance coverages are needed for tow truck businesses? 

Insurance premiums for tow truck businesses may vary based on several factors including your tow truck business’s hours of operation, location, age of the business, number of drivers and their driving records, and the type of towing your business performs.

How do I purchase tow truck insurance for my business?