Owning a towing service requires a lot of insurance, and it can be difficult to get a policy with one insurance carrier. This article will explain why it’s difficult for towing companies to get insurance coverage and the best coverage to get.
There aren’t a lot of companies that want to give out towing insurance despite towing being an extremely useful and necessary service. This is because towing comes with a lot of risks.
You operate on the side of roads, with other people’s property, towing damaged vehicles. These create opportunities for damage while you have the car.
There is also garage keeper’s exposure that comes with dealing with damaged vehicles on your property. There are workers comp problems because it’s a physical job with potentially severe injury risks, too.
You can work with an agent who can piece together coverage from different insurance providers. However, this usually leads to overpaying. You also may have two separate companies fighting each other over who owns the loss if something happens. So, a commercial auto policy carrier may fight with a worker’s comp carrier if a driver gets into an accident.
The key is to try to find one carrier who will write the entire thing for the core policies. These are general liability, commercial auto, worker’s comp, property, and garage keeper’s insurance. Not many companies will, but if you do your research you can find it with the help of a pro insurance agent.
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