How to Get Tow Contracts with Police Departments and Private Lots
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 19
- 2 min read
Securing tow contracts with police departments and private lots can be a game-changer for tow truck companies. These contracts provide consistent work, boost credibility, and open doors to long-term partnerships. However, winning these contracts requires preparation, compliance, and strategic networking.
How to Get Police Department Tow Contracts
Police towing contracts are typically awarded through a competitive bidding process. Municipalities often release Requests for Proposals (RFPs) outlining requirements such as insurance coverage, fleet standards, and operational protocols. Tow trucking companies must meet strict criteria, including background checks, equipment inspections, and proof of liability insurance. Being on a police rotation list means your company will be called for non-consensual tows, accident scenes, and impound services. Source1
How to Get Private Lot Towing Contracts
Private property towing contracts are often secured by building relationships with property managers, apartment complexes, and commercial lot owners. These agreements allow tow trucking companies to remove unauthorized vehicles from private premises. To qualify, you must comply with local signage laws, obtain proper permits, and offer reliable service. Contracts typically include clauses for impound fees, storage charges, and vehicle release procedures.
Tow Truck Insurance Requirements
Before bidding on contracts, tow truck companies must carry specific insurance coverages. These include:
Auto Liability Insurance (required in all states)
On-Hook Towing Insurance (covers vehicles being towed)
Garage Keepers Legal Liability (for stored vehicles)
General Liability Insurance (for property damage and bodily injury)
Insurance requirements vary by state and contract type, but having comprehensive coverage is essential for compliance and protection.
For tailored coverage, Wexford Insurance offers specialized policies for tow truck businesses.
Best Practices for Running a Tow Truck Business
To maintain contracts and grow your business, focus on operational excellence. Use dispatch software for efficient scheduling, maintain your fleet regularly, and train drivers in customer service and safety protocols. Clear communication with clients and law enforcement agencies is key to building trust and reliability.
Tips for Starting a Tow Truck Company
If you're new to the industry, start with a solid business plan. Understand your local market, secure financing, and invest in quality equipment. Build a strong online presence and network with local businesses and government agencies. Offering additional services like roadside assistance can help diversify your income.
Conclusion
Winning tow trucking contracts with police departments and private lots requires preparation, compliance, and professionalism. With the right strategy and insurance coverage from Wexford Insurance, your tow truck business can thrive in a competitive market. Contact now.
