Automotive towing companies, like other organizations in the automotive sales and services industry, face various risks. They could incur a claim related to an accident at a job-site, experience storm damage to their property, or an economic loss. Because of these and other hazards inherent in operating their business, auto towing company owners should contact an experienced, independent business insurance agent to learn about purchasing automotive towing commercial insurance to safeguard their organization. Having quality commercial insurance in place can allow a towing company to continue to function, and shield its assets from harm, in the event of an unanticipated loss or liability.
Insurance Policy Coverage Varies
Commercial insurance policies vary in their terms. Different types of businesses require diverse kinds of coverage. Certain policies may contain different exclusions and limitations from others. Automotive towing companies typically require auto insurance, but some may also want equipment breakdown coverage, business personal property insurance, coverage for improvements and betterments to their facilities, or trailer insurance. Let’s delve into these coverage options a bit more:
1. Auto insurance: You rely on your tow truck in order to operate your business. So, having the right business auto insurance is essential. This will help to cover the cost of repairs if your vehicle is damaged due to bad weather, is in a collision with another car, or hits a pothole and damages an axle.
2. Equipment breakdown coverage: As a tow truck operator, you likely have a lot of equipment that you take with you on the road, and some you leave at the shop. Equipment breakdown coverage, sometimes called boiler and machinery insurance (even though it covers much more than that), will help to pay for losses due to equipment failures. You probably have warranties on your machinery and tools, but what if the problem was operator error? That’s when it’s helpful to have an insurance policy.
3. Business personal property insurance: This is insurance that protects against losses on property owned by your tow truck business. It covers everything from your computer, to rekeying your locks, to loss of business income, and everything in between.
4. Improvements and betterments: If you plan to expand your tow truck business some day, then you will likely need to expand your building, bring in newer equipment, and create more offices for your employees. Any work that is done to enhance the property is called an improvement or betterment. It is an investment that you have made, and you can purchase an insurance policy to protect it.
5. Trailer insurance: When a vehicle is attached to your tow truck, there is the possibility that it could be wrecked in an accident, or become unhitched and get damaged. Also, once the vehicle is at your tow truck facility and is sitting on your property, it could be vandalized or stolen. Protect yourself against such incidents with commercial trailer insurance.
An independent insurance agent, knowledgeable about local business and industry, will work personally with towing company owners to secure commercial insurance coverage that suits their business’s needs, including workers’ compensation. A seasoned independent insurance agent will review factors like location and size of an organization, number of employees, and towing equipment used on the premises and off-site to determine adequate commercial insurance coverage for a particular automotive towing company.
By connecting with a trusted independent insurance agent, commercial towing company owners can gain an understanding of the available options for business insurance, and get answers to their questions about buying a policy. With the help of a seasoned independent insurance agent, auto towing companies can secure commercial insurance to keep their business, and its financial and material resources, protected.
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