Drivers all across the country need tow truck services from time to time, so this can be quite a lucrative and sustainable business. However, it is not without inherent risks. As a tow truck service provider, you'll need to have adequate insurance coverage to protect your business, drivers and clients. Here's what your tow truck insurance policy should include.
Bodily Injury Liability
Like any other drivers, tow truck drivers can get into accidents while on the road. You'll need to have bodily injury liability coverage to pay for any medical costs incurred by other drivers who are injured in an accident with one of your tow trucks.
Property Damage Liability
Property damage liability coverage applies to any damage your driver causes to another vehicle in an accident. This aspect of coverage can pay to fix the other driver's vehicle or any physical structures damaged, like buildings and fences. It is important to note that this coverage does not apply to the tow truck itself or any vehicle that it is towing. These damages are covered under separate coverage areas.
Collision coverage pays for any damage to your tow truck in an accident that is your driver's fault. This type of coverage may also apply to other damages to your truck, like if a tree branch falls on it or it is damaged by falling debris from another vehicle's cargo space.
On Hook Coverage
This is a crucial aspect of coverage for any tow truck operator, as it protects the vehicle being towed. Your clients trust you to tow their vehicle safely, and you don't want to be held responsible for any damage their vehicles suffer while in your care. This aspect of your coverage will go towards any damage to the towed vehicles to bring them back to their original state.
Get Protection for Your Tow Truck Business
Here at Southern Colorado Insurance Center, we are proud to work with tow truck businesses, helping you find the coverage you need. We'll work with you to identify the key coverage aspects your business will need to be adequately protected. Get in touch with us today at 719-329-4441 to get the process started.