How to Insure Your Tow Truck Business for Accidents and Liability
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 11
- 2 min read
Tow truck companies face unique risks every day—whether you're responding to roadside emergencies, transporting disabled vehicles, or operating in high-traffic areas. Accidents, property damage, and liability claims can happen at any time, which is why having the right tow truck insurance is critical to protecting your business.
Whether you're an owner-operator or managing a fleet, the right insurance coverage ensures you're financially protected and compliant with state and federal regulations.
What Does Tow Truck Insurance Cover?
A comprehensive tow truck insurance policy typically includes several types of coverage to protect your business from a wide range of risks:
Physical Damage Truck Insurance – Protects your vehicle from collisions, theft, vandalism, and weather-related damage.
Auto Liability Insurance – Covers bodily injury and property damage caused by your tow truck.
On-Hook Towing Insurance – Covers vehicles being towed in case they are damaged while in your care.
Garage Keepers Legal Liability – Protects customer vehicles stored on your property.
General Liability Insurance – Covers non-driving-related incidents, such as injuries at your business location.
At Wexford Insurance, we help you build a policy that fits your specific needs—whether you're just starting out or expanding your operations.
How to Choose the Right Tow Truck Insurance
Here are a few key tips to help you choose the best commercial tow truck insurance for your business:
1. Evaluate Your Business Type
Are you offering roadside assistance, repossession services, or private property towing? Each type of service comes with different risks and insurance requirements. Wexford Insurance works with all types of tow truck companies to ensure your policy matches your operations.
2. Consider Your Fleet Size and Drivers
Whether you operate a single truck or a fleet, your insurance needs will vary. Also, insurers consider driver experience and driving records when calculating premiums. Keeping a clean driving history can help lower your rates.
3. Bundle Coverage for Better Rates
Bundling auto liability, on-hook towing, and garage keepers' insurance can save you money and simplify your policy management. Wexford Insurance offers bundled packages designed specifically for tow truck businesses.
4. Stay Compliant with State Regulations
Tow truck operators must meet specific insurance requirements depending on the state. Wexford Insurance ensures your policy meets all legal standards, helping you avoid fines and delays.
Final Thoughts
Running a tow truck business comes with high responsibility—and high risk. With the right tow truck insurance, you can protect your vehicles, your clients’ property, and your business from costly claims and accidents.
Wexford Insurance specializes in transportation-related business insurance, offering tailored solutions for owner-operators, fleets, and new venture tow truck companies across the U.S. Contact Wexford Insurance today to get a customized quote and expert guidance for your tow truck business.
