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Why do towing businesses need insurance?
Property damage and injuries are a big risk for towing companies. Tow truck insurance gives you peace of mind and financial protection against lawsuits and accidents. You may need coverage to comply with state laws or the terms of a contract.
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What types of tow truck insurance do I need?
These insurance policies cover common risks faced by tow truck drivers.
Commercial auto insurance
This tow truck insurance policy includes auto liability coverage that pays for medical bills and property damage in an accident. It can also include physical damage coverage for your vehicle.
BEST FOR
- Bodily injury liability in an accident
- Vehicle theft and vandalism
- Underinsured/uninsured motorist coverage
General liability insurance
This insurance covers damage to customer property, accidental bodily injuries, and other common third-party claims. It may be required for a lease or contract.
BEST FOR
- Third-party medical expenses
- Property damage liability
- Libel and slander lawsuits
Workers' compensation insurance
Most states require workers' comp for towing businesses with employees. It also covers work-related medical bills for sole proprietors, which personal health insurance could deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Lawsuits from employee injuries
Business owner's policy
A BOP is a cost-effective way for towing companies to buy general liability and commercial property insurance together. It protects against common lawsuits and property damage.
BEST FOR
- Accidents that harm clients
- Stolen or damaged items
- Business interruption insurance
Cyber insurance
This policy helps tow truck companies recover financially from cyberattacks and data breaches. It's sometimes called cyber liability insurance or cybersecurity insurance.
BEST FOR
- Ransomware attacks
- Data breach investigations
- Customer notification costs
Looking for different coverage? See more policies.
How much does towing insurance cost?
Insurance companies look at different aspects of your towing business to determine your commercial insurance rates, including:
- Business revenue
- Type of vehicles and their value
- Business location
- Number of employees
- Policy limits and deductibles
- Claims history
Why is commercial insurance important for tow truck businesses?
Almost every state requires commercial auto insurance for tow trucks and other commercial vehicles. Depending on their location, towing businesses that have employees may also be required by state law to carry workers' compensation insurance.
If your towing business stores or maintains customer vehicles, you should consider garage liability insurance. A type of general liability insurance, garage liability protects you in the event that a covered accident, such as a customer slipping and injuring themselves, happens in the course of business operations. Business owners may also need general liability insurance to fulfill the terms of a lease or a client contract.
Your towing garage might also benefit from having garage keepers insurance or on-hook towing insurance. It covers your business in the event that a towed vehicle is damaged or stolen while in your care.
Even when it's not required, commercial insurance coverage makes smart business sense. It can help pay for unexpected costs that could harm your towing business, such as expensive repairs, medical payments, or a lawsuit.
How do I get tow truck insurance coverage?
It's easy to get insurance for your towing business, repair shop, or car hauler if you have basic information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right type of coverage for tow truck operators, whether you work independently or hire employees.
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