Commercial tow truck insurance
Commercial tow truck insurance is essential for towing businesses to protect against accidents, liability claims, and vehicle damage. It ensures financial security, legal compliance, and peace of mind while operating on the road.
Choose the right coverage from trusted insurance providers.
Why do towing businesses need insurance?
Towing companies face high risk every day, from accidents on the road to potential lawsuits from customers. Having commercial tow truck insurance provides financial protection and peace of mind, ensuring that businesses can handle unexpected incidents.
Proper coverage helps companies comply with state laws and meet the terms of a contract, making insurance a crucial part of running a towing business.
What Kind of Insurance Covers Tow Trucks?
Having the right insurance policies is essential to protect against the common risks that tow truck drivers face daily.
Business owner’s policy
A BOP offers towing companies a cost-effective way to buy general liability and commercial property insurance. It protects against common lawsuits, property damage, and accidents that may harm clients. It also covers stolen or damaged items and includes business interruption insurance.
Under this plan
Ideal for small car washes & detailing
One policy, multiple protections
Covers lost income
Commercial umbrella insurance
An umbrella policy boosts coverage limits by extending general liability insurance, commercial auto insurance, and employer’s liability insurance. It helps protect car washes from expensive claims like multi-vehicle auto accidents, customer injury lawsuits, and employee injury lawsuits, preventing financial strain on the business.
Under this plan
Extra protection
High-cost lawsuits
Serious accidents
Commercial auto insurance
This commercial tow truck insurance policy covers auto liability coverage for medical bills, property damage, and bodily injury liability after an accident. It includes physical damage coverage for your vehicle, protection against vehicle theft, and vandalism, and underinsured or uninsured motorist coverage.
Under this plan
Cyber insurance
A policy for tow truck companies must include cyber liability insurance or cybersecurity insurance to recover financially from cyberattacks and data breaches. It covers ransomware attacks, data breach investigations, and customer notification costs, ensuring business stability.
Under this plan
Fraud monitoring services
Customer notifications
Cyber threat protection
General liability insurance
General liability insurance protects tow truck businesses from third-party claims, covering damage to customer property, accidental bodily injuries, third-party medical expenses, and property damage liability. It also shields against lawsuits, libel, and slander. Many contracts, including a lease, require this insurance.
Under this plan
Covers vehicle liability & Injuries
Includes garage keepers insurance
Protects against lawsuits & claims
Worker’s compensation insurance
Workers’ comp protects towing businesses by covering employee injuries, medical bills, and disability benefits. Many states require it to handle employee medical expenses and prevent lawsuits. Even sole proprietors need coverage since personal health insurance may deny work-related claims.
Under this plan
Medical costs for work injuries
Disability benefits for employees
Protection from lawsuits
Types of Commercial Tow Truck Insurance
Having the right commercial truck insurance is essential to protect your business, employees, and vehicles from unexpected risks. Several coverages are available to meet different state requirements and business needs.
- Liability Insurance Coverage covers property damage and bodily injury if a company-owned tow truck is involved in an accident during business purposes.
- Collision Coverage helps with repairs and replacement costs if the truck hits a car or a pole.
- Medical Payments Coverage covers medical bills for passengers and employees, including medical treatments, rehabilitation, dental care, and funerals.
Uninsured/Underinsured Motorist Insurance helps fix damages and cover medical expenses if a driver is hit by an uninsured or underinsured motorist.
Additional commercial truck insurance options include
- Semi Truck Insurance for semi trucks and the loads they haul.
- Box Truck Insurance for box trucks and straight trucks used in business.
- Dump Truck Insurance to transport materials like dirt, sand, and gravel while staying protected.
- Tractor Trailer Insurance for trucking companies to safeguard their tractor-trailer on the road.
How to Get Tow Truck Insurance Coverage?
Finding the right tow truck insurance is crucial for any towing business, whether you run a repair shop, operate a car hauler, or manage a fleet. To start the process, you need basic information about your company, such as revenue and the number of employees. Many U.S. providers offer options, but working with licensed insurance agents can help you find the right type of coverage.
You can get insured in three steps:
- Fill out a free online application with Eagle Nation.
- Compare insurance quotes, choose policies, and select what fits best.
- Pay for the policy and download your certificate of insurance instantly.
If you prefer working with a local agent, companies like Eagle Nation can guide you through the process. As a small business owner, you can also get a quote through Tivly, a trusted partner, to ensure you stay protected while on the road. Whether you work independently or hire employees, securing the best coverage on time is key to protecting your business.
Why Is Commercial Insurance Important for Tow Truck Businesses?
Every state has different rules, but most require commercial auto insurance for tow trucks and other commercial vehicles. The location of a towing business affects what coverage is needed, and if a company has employees, state law may also require workers’ compensation insurance.
- Businesses that handle customer vehicles should consider garage liability insurance or general liability insurance, which protects against an accident where a customer is injured on-site.
- Towing garages may also need garage keepers insurance or on-hook towing insurance to cover a towed vehicle in case it is damaged or stolen while in their care.
- Some business owners must have liability coverage to meet lease agreements or a client contract.
Even when not required, having the right commercial insurance coverage is just good business sense. It helps cover unexpected costs, such as repairs, medical payments, or even a lawsuit, protecting the business from financial risk.
Commercial Insurance Coverage for Tow Trucks
A tow truck business earns income by towing disabled vehicles and assisting stranded drivers. Whether you operate independently or work with roadside service providers, auto club contractors, rotational towing, auto body shops, auto mechanical repair, full-service stations, auto salvage, or auction haulers, having customized commercial tow truck insurance is crucial. This ensures your business is protected against risks specific to the industry.
Towing and Storage Protection
Different tow truck companies require unique coverage based on their needs. Essential towing insurance includes:
- Garage keepers legal liability insurance – Protects customers’ vehicles while they are parked on your property.
- On-hook towing insurance covers vehicle towing in case it get damaged or stolen.
- Tow general liability insurance – This helps when you are legally liable for bodily injury, property damage, or personal injury unrelated to your covered vehicles.
Tow Truck Insurance Coverage
There are various towing insurance coverages designed for commercial vehicles, including:
- Liability insurance – Covers injury to other people and damage to their property.
- Bodily injury liability insurance – Pays for medical care for affected individuals.
- Property damage liability coverage – Covers repairs or replacements.
- Medical payments insurance – Pays for medical bills for you and your passengers if you are injured in an accident or an auto-related injury.
- Physical damage coverage – Helps with repairs in case of a collision or impact, like a falling tree branch.
- Includes three coverages:
- Collision insurance – Covers accidents with other vehicles.
- Comprehensive insurance – Covers non-collision damages.
- Fire and theft with CAC insurance – Covers fire and theft losses.
- Includes three coverages:
Uninsured Motorist Protection
Accidents involving drivers with no insurance or adequate coverage can be costly. Uninsured motorist insurance for commercial tow trucks helps protect you in such cases, including:
- Uninsured motorist insurance – Covers injuries to you and your passengers.
- Underinsured motorist insurance – Helps when the at-fault driver’s coverage is insufficient.
- Uninsured motorist property damage insurance, where available – Covers vehicle damage from uninsured drivers or hit-and-run incidents.
Comprehensive Towing Business Solutions
A towing business insurance policy typically includes liability coverage for property damage or bodily injury that occurs during towing operations. Additional coverage options protect on-hook coverage, damages to vehicles being towed, towing vehicles, and other risks such as theft, alleged assault, and battery liability.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
FAQs About Commercial Tow Truck Insurance
A tow truck business faces many risks on the road, making tow truck insurance essential. Whether your company operates a single truck or a fleet, the right type of commercial auto insurance helps protect your vehicles and safeguard daily operations.
Tow truck operators deal with unexpected accidents on the job, and this insurance protects against common risks like third-party claims, property damage, and bodily injury. Towing companies must ensure they have proper coverage to prevent costly financial setbacks.
Tow Truck Insurance Requirements
Tow truck drivers work 24/7, making tow truck insurance requirements crucial for staying protected. These requirements vary by state, but key tow truck insurance coverages include:
- General liability insurance coverage – Covers third-party claims for bodily injury and property damage.
- Medical payments insurance – Pays for medical bills after an unexpected accident or costly claim.
- Physical damage coverage – Covers repairs for vehicles due to collisions or other damage.
- Uninsured motorist insurance coverage – Protects against uninsured or underinsured drivers.
Meeting these tow truck insurance requirements ensures your business stays compliant and fully covered on the job.
Commercial tow truck insurance helps protect the operations of various businesses in the towing industry.
- Tow truck drivers
- Autobody shops
- Tow truck companies
- Rotational towing
- Roadside service providers
The towing insurance cost varies based on several factors. Insurance providers, like Eagle Nation companies, consider:
- Location and business location
- Type and size of the tow truck
- Selected coverages in the policy
- Employee’s driving records
- Business revenue and value of vehicles
- Number of employees
- Policy limits, deductibles, and claims history
All these factors affect your commercial insurance rates for commercial tow truck insurance.
Commercial auto insurance covers vehicles used for business purposes while towing insurance provides coverage for businesses in towing operations. Unlike a standard commercial auto insurance policy, towing insurance policies include additional coverages like on-hook coverage for towed vehicles and wrongful repossession protection.
Heavy-duty tow trucks
Hook and chain tow trucks
Integrated tow trucks
Wheel lift tow trucks
Boom tow trucks
And more
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Highly Recommended! Eagle Nation made getting commercial tow truck insurance fast and hassle-free. Excellent coverage options and great customer service!