Why Tow Truck Companies Need Liability and On-Hook Coverage
- 6 hours ago
- 2 min read
Tow truck companies operate in high-risk environments where accidents, vehicle damage, and roadside hazards are part of daily operations. Proper tow truck insurance, including liability and on-hook coverage, is essential to protect your business from costly claims and legal disputes.
Tow Truck Liability Coverage Protects Against Major Financial Loss
Commercial auto liability insurance forms the foundation of any tow truck insurance policy. This coverage pays for bodily injury and property damage if your tow truck is involved in an accident. Given the size and weight of tow trucks, accidents can result in substantial claims.
Most states require minimum liability coverage, and many commercial contracts require limits of $1 million or more. The Federal Motor Carrier Safety Administration (FMCSA) outlines insurance requirements for certain commercial vehicle operators and provides guidance on regulatory compliance.
Without adequate liability coverage, a single accident could jeopardize the financial stability of your towing company.
Tow Truck On-Hook Coverage Protects Customer Vehicles
On-hook coverage is uniquely important for tow truck operations. While liability insurance protects against damage you cause to others on the road, on-hook insurance covers damage to a customer’s vehicle while it is being towed.
If a vehicle is damaged during loading, transport, or unloading, on-hook coverage pays for repair or replacement costs. This protection is critical because towing companies regularly take possession of valuable customer property. Even minor damage claims can quickly escalate into expensive disputes.
Carrying both liability and on-hook coverage ensures comprehensive protection for your tow truck business.
Tow Truck Operations Face Unique Risk Exposures
Tow truck companies encounter several risk factors that increase the need for strong insurance protection:
Roadside recovery in hazardous conditions
Heavy-duty towing of commercial vehicles
Accident scene operations
Vehicle storage and transport
Urban traffic congestion
Each of these exposures raises the likelihood of accidents or claims. Adequate coverage limits help prevent financial strain from unexpected incidents.
Tow Truck Insurance Enhances Professional Credibility
Clients, municipalities, and law enforcement agencies often require proof of insurance before approving towing contracts. Maintaining proper liability and on-hook coverage demonstrates professionalism and financial responsibility.
Strong insurance coverage not only protects assets but also strengthens your company’s reputation in a competitive market.
Secure Tow Truck Liability and On-Hook Coverage with Wexford Insurance
Selecting appropriate tow truck insurance requires expertise in commercial vehicle risk. Wexford Insurance specializes in customized coverage solutions for towing companies. Their team evaluates your fleet size, services offered, and regulatory requirements to design a comprehensive policy tailored to your operations.
Request a personalized quote from Wexford Insurance today to ensure your tow truck business is fully protected against liability claims and customer vehicle damage.
FAQs
What types of insurance coverage are required for tow truck companies?
What does commercial auto insurance cover for tow trucks and recovery vehicles?
What steps are required to get tow truck business insurance for your towing company?
