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By Ed Sneineh
Tow truck insurance is a type of garage liability mixed with commercial truck insurance coverage, and is a necessary business expense in areas where trucking companies are required by law to have insurance. Sometimes a towing company can cause a problem when that company is trying to help vehicle owners who are in distress. A towing company employee might improperly tie down a vehicle on its hoist and the vehicle can fall off and be damaged in the fall.
Most towing company employees are trained professionals and go through an entire career without having an accident. But accidents do happen from time to time which is why companies need to be insured against property damage and injury to other persons. If a cable on the hoist snaps when it is lifting a vehicle the cable could strike a person nearby and cause an injury. There are many accidents that can happen even if the tow driver is as careful as he possibly can be.
The towing company has to be insured in case the truck’s equipment fails at a critical time such as when a vehicle is being hauled along the highway. If a vehicle falls of the hoist while it is in tow the vehicle can strike another vehicle on the highway and cause a serious traffic accident. Accidents occur even to those who respond to traffic accidents who are not immune from highway accidents.
Towing rigs are like any other vehicle on the road meaning that towing rigs can be involved in a road accident just like any other road vehicle. Therefore, towing rigs have to have liability insurance just as any other vehicle on the road. Some areas require a minimum amount of liability a particular towing vehicle needs to carry.
Speak with a local agent who will be able to provide information regarding the minimum amount of insurance each tow vehicle needs to carry. Never let the coverage lapse because one accident, that is not insured, can cause the end of the most profitable business. Have the proper coverage on all tow vehicles in order to be able to sleep soundly at night.
Towing services need to have bodily injury liability coverage in the event that a company employee is responsible to the injury of another person. The policy should pay for the injured person’s medical bills, the injured person’s lost income, and the injured person’s pain and suffering if any. The policy pays for lawyer fees related to the defense of the legal action brought by the injured party.
Towing companies need property damage liability coverage that will pay for damage to any property caused by the towing service when the service is determined to be at fault. This policy pays for lawyer fees associated with the defense of the claim brought by the owner of the damaged property. The minimum dollar amount of coverage is usually decided by local government so ask a policy representative what the minimum amount of coverage needs to be taken out.
Tow truck insurance is a requirement for each towing service that wants to be protected financially from a road accident. There are many accidents a tow service can be involved in such as losing a car off the hoist while transporting the vehicle on the highway. Each towing service must have the minimum property and personal injury coverage dictated by government regulation in order to operate on the highway.
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