Tow truck businesses are incredibly important in our society; they provide a much-needed service that keeps people safe on the roads. But with this service comes a certain level of risk and liability, which is why tow truck businesses need to ensure they are properly protected with tow truck insurance.
Tow truck insurance is a specialized form of commercial insurance designed specifically for tow truck businesses. It provides coverage for the business, its vehicles, and its employees in the event of an accident, injury, or other liability. Tow truck insurance protects the business from financial losses from accidents, injuries, and other liabilities.
Tow truck insurance typically covers property damage, bodily injury, medical payments, and other types of liability. It may also cover legal costs, such as legal fees and court costs, in the event that the tow truck business is sued. Additionally, tow truck insurance may cover the cost of repairs to damaged vehicles, as well as coverage for lost or stolen items.
Who Needs Tow Truck Insurance?
Tow truck businesses are legally required to carry tow truck insurance in many states. This is because tow truck businesses are considered to be high-risk due to the potential for accidents and injuries. As such, tow truck businesses must protect themselves from financial losses by carrying tow truck insurance.
Additionally, tow truck businesses that employ drivers or use subcontractors should also carry tow truck insurance. This is because it provides coverage for the business and its employees in the event of an accident or injury. Furthermore, tow truck businesses that use subcontractors should make sure that the subcontractors are also adequately covered by tow truck insurance.
Types of Tow Truck Insurance
There are several types of tow truck insurance available. The most common types of tow truck insurance are liability, property damage, and medical payments.
- Liability insurance covers third-party claims against the tow truck business, such as bodily injury or property damage.
- Property damage insurance covers damage to the tow truck business’s own property, such as vehicles or buildings.
- Medical payments insurance covers medical expenses for those injured in an accident involving the tow truck business.
Other types of tow truck insurance may include coverage for cargo, hired and non-owned auto, uninsured/underinsured motorist, and more.
How Much Does Tow Truck Insurance Cost?
The cost of tow truck insurance varies depending on the type and amount of coverage, as well as the size of the tow truck business. It is important to shop around and compare quotes from different insurance companies to ensure you get the best rate.
Tow Truck Insurance Requirements
Tow truck businesses are required to carry tow truck insurance in many states. The exact requirements vary from state to state, so it is essential to check with your state’s insurance department to determine the specific requirements for your tow truck business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7549 Automotive Services, Except Repair and Carwashes
- NAICS CODE: 488410 Motor Vehicle Towing
- Suggested Workers Compensation Code(s): 7219 Trucking NOC – All Employees & Drivers
Tow Truck Insurance – The Bottom Line
Tow truck businesses are an essential part of our society, providing a much-needed service that keeps people safe on the roads. But with this service comes a certain level of risk and liability, which is why tow truck businesses need to ensure they are appropriately protected with tow truck insurance. Tow truck insurance provides coverage for the business, its vehicles, and its employees in the event of an accident, injury, or other liability.