Tow trucks are an incredibly versatile and valuable tool for any business or individual with a large fleet of vehicles. As such, it’s important to understand what types of insurance one should have in place when operating a tow truck. The type of insurance needed will depend on the size and scope of the tow truck operation, as well as any additional equipment that may be used in the course of business.
General Liability Insurance: General liability insurance is required for all businesses, regardless of size or scope. In the case of tow trucks, this type of insurance protects against claims made by third parties who may have been injured or had their property damaged while the tow truck was in operation.
Commercial Auto Insurance: Commercial auto insurance is designed to protect the tow truck itself and any other vehicles that may be owned by the business. This type of policy typically covers physical damage to vehicles caused by accidents, theft, vandalism, and other forms of damage.
Cargo Insurance: Cargo insurance is a must for any tow truck operator who transports goods from one place to another. This type of policy covers losses related to cargo that is lost, stolen, or damaged while in transit.
Umbrella Coverage: Umbrella coverage provides additional liability protection over and above what is provided by general liability and commercial auto policies. This type of policy can be beneficial for companies that operate multiple tow trucks in different locations.
Conclusion:
When operating a tow truck, it’s important to understand what types of insurance are necessary in order to protect your business from potential liabilities. General liability, commercial auto, cargo coverage, and umbrella policies are all essential types of coverage for any tow truck operation.
