If you have a tow truck business, it’s really important to have the right tow truck insurance. But there are a lot of coverages out there, and the names can get confusing. Take garage liability, for example. What if you don’t have an actual garage – do you still need garage liability insurance? Why would you need garage liability insurance if you don’t have a garage? We’ll explain.Get a business insurance quote
What is garage liability insurance?
Garage liability insurance can help protect your towing businesses from claims of bodily injury or property damage that arise from the services your business provides or the day to day operations of your business.
What does that mean?
Let’s give an example to explain.
We’re going to make up a fictitious roadside assistance business. Ta da! (They don’t have a physical garage location.) Now we’re going to have a driver of that business get a call to help someone change a tire. They hit the road and find the driver, who does in fact have a flat tire. The driver changes the tire and sends the driver on their way.
Only there’s a problem. The driver made a mistake when they changed the tire. The owner of the car with the tire that just got changed only makes it a little ways down the road before the tire pops off the car…causing an accident. It’s kind of a disaster. The driver of the tow truck feels terrible about what happened.
But garage liability insurance could help in the event of such a nightmare. And that’s why it’s so important for tow truck businesses to consider garage liability even if they don’t have a physical garage location.
What other coverages should towing businesses consider?
There are a few other coverages that towing businesses might want to consider:
- Auto liability
- Physical damage
- On-hook coverage
- Wrongful repo
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