Tow Truck Insurance Made Simple

Tow truck businesses offer more than just a roadside service. They’re a vital part of keeping our local communities moving smoothly and safely. Whether it’s helping a neighbor with a breakdown, clearing the road after an accident, or securing vehicles when needed, tow truck operators are always there when the community needs them most. However, risk comes with that responsibility. At Rollo Insurance, we understand the risks that tow truck owners face, and we’re proud to support the hardworking men and women who serve our neighborhoods every day. With coverage tailored specifically for the towing industry, we’re here to help protect your business, your team, and the community you care about.

Specific Risks Facing Tow Truck Businesses

Tow truck operators face a whole lot more than just traffic on the daily grind. Every call comes with its own set of challenges, and let’s be real: this line of work is no walk (or drive) in the park. Here’s a look at the kinds of risks that come with the territory:

• Accidents Happen: Navigating busy roads in a big rig like a tow truck isn’t easy. One wrong move or distracted driver nearby, and you’re looking at potential damage, not just to your truck, but to the vehicle you’re towing and even surrounding property. That’s a liability headache you don’t want to face unprotected.
• Bumps and Bruises for Towed Vehicles: Once that car is hooked up, it’s your responsibility. Any dents, dings, or damage during the tow (or even while it’s sitting in your lot) can turn into a costly claim.
• On-Hook Coverage: Ever heard of “on-hook”? That’s just insurance-speak for when a vehicle is physically attached to your truck. If something goes wrong mid-tow, this coverage is your safety net.
• Garagekeepers Liability: Got a yard or storage facility? If you’re holding onto customers’ vehicles, you’re on the hook (pun intended) for anything that happens to them while they’re in your care.
• Repos Gone Wrong: Repossessions can be tricky business. A paperwork error or a case of mistaken identity could land you in legal trouble for wrongful repossession.
• On-the-Job Injuries: Towing is tough work. Between lifting, loading, and working on the side of the road in all kinds of weather, injuries can and do happen. Protecting your crew with the right coverage is a must.
• Equipment Targeted: Winches, chains, dollies, and all the gear that keeps your business rolling is expensive and, unfortunately, a target for thieves or damage.
• Scene Liability: When you’re clearing a wreck, you’re often in the middle of chaotic, high-risk environments. One misstep and you could be liable for additional accidents or injuries on scene.
• Environmental Woes: Spills from damaged vehicles or leaks in your lot can turn into major environmental issues, with cleanup costs and legal consequences not far behind.

At the end of the day, towing isn’t just a job—it’s a responsibility. And that responsibility deserves solid protection.

Required and Recommended Tow Truck Insurance Coverages

A solid tow truck insurance plan typically includes the following coverages:

Required Coverages (Often Mandated by Law or Contract):

• Commercial Auto Liability Insurance: This is the most fundamental coverage, protecting you against bodily injury or property damage you cause to others in an accident involving your tow truck. Coverage limits are often higher for commercial vehicles due to their size and potential for greater damage. 
• Workers’ Compensation Insurance: If you have employees, this coverage is usually legally required and covers their medical expenses and lost wages if they are injured on the job.

Highly Recommended and Often Contractually Required Coverages:

• On-Hook Coverage: This crucial coverage specifically protects the vehicles you are actively towing. It covers damage caused by accidents, collision, fire, theft, or vandalism while the vehicle is attached to your tow truck.
• Garagekeepers Liability Insurance: This protects vehicles in your care, custody, or control while they are stored at your facility for services like repairs, towing, or impound. It covers damage from perils like fire, theft, vandalism, and collision.
• Physical Damage Coverage (Collision and Comprehensive): This covers damage to your own tow truck.
  • Collision: Covers damage resulting from an accident with another vehicle or object.
  • Comprehensive: Covers damage from other perils like fire, theft, vandalism, wind, hail, and falling objects.
• Uninsured/Underinsured Motorist Coverage: This protects you and your employees if you are involved in an accident caused by a driver who has no insurance or insufficient insurance to cover the damages.
• Wrongful Repossession Coverage: This protects you against claims alleging improper or illegal repossession of a vehicle.
• General Liability Insurance: While your Commercial Auto policy covers vehicle-related incidents, General Liability protects your business from other liability claims, such as someone slipping and falling at your office or storage facility.
• Pollution Liability (Environmental Liability): This coverage helps protect you from the costs associated with spills of fuel or other fluids during towing operations or at your facility.
• Commercial Property Insurance: If you own a physical location (office, storage yard), this covers damage to the building and its contents.
• Business Interruption Insurance: If a covered event (like a fire) forces you to temporarily cease operations, this coverage can help replace lost income and cover ongoing expenses.

Choosing the Right Coverage and Limits

The specific types and limits of coverage you need will depend on factors such as:

• The size and value of your tow truck(s).
• The type of towing services you offer (local, long-haul, repossession, etc.).
• The value of the vehicles you typically tow.
• Whether you have a storage facility.
• The number of employees you have.
• Contractual requirements from motor clubs or other entities you work with.
• Your risk tolerance.

Rollo Insurance: Your Trusted Partner in Tow Truck Protection

Running a towing business represents a commitment to helping people in your community when they need it most. Whether you’re pulling someone out of a tough spot on the side of the road or clearing the way after an accident, your work keeps our local streets safe and moving.

At Rollo Insurance, we see you as a business and as part of the fabric of our community. We know the towing industry comes with serious responsibilities, and we’re here to make sure you and your team are protected every step of the way. The right insurance coverage isn’t just a line item—it’s peace of mind for you, your family, and the people who count on you. We’ll work with you one-on-one to build a customized tow truck insurance plan that fits your operation, whether you’re a one-truck outfit or a full fleet. Let’s make sure you’ve got the coverage you need to keep doing what you do best: serving your neighbors with pride.

Reach out today for a friendly, no-pressure consultation. At Rollo Insurance, we’ve got your back—because you’ve always had ours.