How does commercial tow truck insurance work?
Commercial tow truck insurance provides coverage that tow truck businesses need for secure and financially sound operations. It protects tow truck businesses from risks and liabilities that may occur when conducting towing services. Below is an overview of how commercial tow truck insurance works.
Depending on the needs of your business, you can choose from a few coverage options. These options include the following.
Auto Liability Coverage – Covers damages when a claim is brought against an insured tow truck.
Physical Damage Coverage – Covers damages when an accident, theft, or vandalism against the tow truck occurs.
On-Hook Coverage – Covers damages that occur to a vehicle as it is being transported by the tow truck.
Garagekeepers Coverage – Covers damages when a vehicle stored at the tow truck garage is damaged, destroyed, or stolen.
General Liability Coverage – Covers damages when a claim arises from injury on the premises of the tow trucking business.
Medical Payments (MedPay) – Covers medical expenses suffered by others after an accident caused by you or one of your drivers.
Uninsured/Underinsured Motorist – Covers damages when an incident occurs with a driver without or with inadequate insurance.
Costs associated with tow trucking insurance are dependent on the size of the business, the size of the fleet, the value of the trucks, the location of the business, and the driving history of the operators. It is also determined by the coverage limits you select.
If a claim is brought against your tow trucking business, you are required to pay a deductible before the coverage pays out. You will agree upon a deductible when you purchase your tow trucking insurance policy. A high deductible reduces your premium. However, you will need to pay more if a claim is made against you.
When an accident occurs, you must contact your commercial tow truck insurance company immediately. A claims adjuster will assess the incident and the claim, determining the compensation to which you as a policyholder are entitled. As a policyholder, you must cooperate with these assessments and provide any documentation deemed necessary.
Commercial tow truck insurance policies usually last for one year. When you renew your policy, terms may be adjusted based on your record or changes in business operations.
When you’re ready to compare commercial tow truck insurance rates, American Insurance Brokers can help. We can search for the most comprehensive yet cost-effective rates and help you navigate policy terms.