On-Hook Towing Insurance
On-Hook Towing Insurance provides coverage for vehicles that you tow, haul, or transport in the course of business. It pays for damage to a customer’s vehicle while it’s attached to your tow truck or transport vehicle.
Protect vehicles in your care while being towed or transported.
At AutoRisk, we provide tailored insurance solutions that allow business owners to operate with peace of mind, knowing their assets and liabilities are covered by experts who understand the unique demands of the automotive industry.
States We Provide Insurance Coverage:
Colorado – California – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri – Oklahoma – Arkansas – Idaho – Iowa – Indiana – Nebraska – Nevada – North Dakota – South Dakota – Montana
Why On-Hook Tow Coverage Matters
If you operate a business that provides towing services, On-Hook Tow Truck Insurance is critical to protect your business. The premium you’ll pay for your insurance will vary, because every tow business is different and each carrier has their own unique rating system. For example, an insurance company will utilize analytical data bases in weighting the different factors that determine both eligibility and final rates. The loss ratio and loss frequency are typically the two most heavily relied upon factors when determining price and eligibility by all Insurance Companies, but many others factors come into play as well.
Why Automotive Businesses Need On-Hook Coverage
Whenever you tow or transport a customer’s vehicle, you take on responsibility for that vehicle while it’s in your care. If it’s damaged during transport, your business could be held liable for repair or replacement costs.
On-Hook Towing Insurance ensures you’re protected when incidents occur, such as:
A collision while towing a customer’s car.
A vehicle slipping off the tow bed or lift.
Fire, theft, or vandalism during transit.
Weather damage (hail, lightning, windstorm) while the vehicle is on your truck.
Without this coverage, your general liability or commercial auto policy will not cover damage to customer vehicles being towed. This leaves you exposed to costly losses.
Don’t leave your coverage to chance, work with an expert who understands your operation.
What is Covered?
A standard on-hook towing policy includes coverage for:
Collision damage – Repairs or replacement if the towed vehicle is damaged in an accident.
Fire, theft, and vandalism – Protection against loss from theft or malicious acts while in transit.
Explosion or natural disasters – Damage from covered weather events or explosions.
Customer vehicles under your care – Applies when the vehicle is attached to your tow truck, flatbed, or other transport equipment.
Factors that influence eligibility and price
There are a several best practices that can give you the upper hand in controlling the spiraling cost of tow insurance, with the two most important categories being your hiring practices and ongoing training of all employees.
Hiring qualified drivers is paramount to the long term safety of your tow operations. It takes both time and patience but will pay large dividends over time. First and most important make sure to carefully screen all new hires. It is essential that you know the driving history of every employee prior to offering them a contract. Additionally having a written job application, conducting extensive background history, checking job references, drug testing, medical exam, and on the job training both in the field and classroom prior to driving alone.
Hiring experienced drivers can be advantageous. Regardless of driving experience having a superior on boarding training program both in house and outside certified training programs like Wreckmaster can make even less experienced drivers become equally attractive hires.
How On-Hook Towing Insurance Works
Coverage limits are based on the average and maximum value of vehicles you tow. When purchasing a policy, consider:
The types of vehicles transported (standard vs. luxury or heavy-duty).
Average number of vehicles towed per day.
Distance and routes traveled.
Storage or layover exposure.
Your broker can help determine the appropriate limits and deductibles to match your towing operation and financial risk tolerance.
Common Loss Scenarios
A towed vehicle is rear-ended while being transported.
A strap or winch fails, causing the vehicle to roll off the bed.
Theft of a customer’s vehicle while hooked overnight on the lot.
A fire breaks out in the tow yard damaging vehicles awaiting drop-off.
On-Hook Towing Insurance helps cover the cost of repairing or replacing customer vehicles damaged during
Safeguarding your business
To ensure you’re not exposing yourself to unnecessary risks, make it a routine to obtain a copy of every potential employee’s motor vehicle report (MVR) before you hire them. This should be a standard best business practice for any type of towing operation, regardless of the type (salvage, recovery, impound, roadside assistance/motor clubs, repossessions, etc.). It is just as important to consistently keep a watchful on all hired drivers, and we strongly suggest that each driver provide their driver abstract during the employee annual review.
Carefully screening employees and making well informed hiring decisions guarantees better insurance rates and greater long-term savings for your towing business.
What On-Hook Insurance Does Not Cover
Typical exclusions include:
Damage to your own towing vehicle or equipment (covered by commercial auto).
Damage that occurs after the vehicle is delivered and detached.
Intentional acts, improper loading, or mechanical failure of the customer’s vehicle.
Cargo other than automobiles, motorcycles, or light trucks (requires separate cargo coverage).
Your insurance specialist can help tailor your policy to your operation and add endorsements for specialty vehicles or heavy-duty towing.
Benefits of Working With AutoRisk
Hundreds of Clients Nationwide | Fast and Responsive Advisors | Transparent Coverage with No Surprises
Custom Policy Design
We customize your coverage based on your business operations, risk exposure and geographic location with the goal of reducing your claims.
Industry Expertise
We specialize in automotive business risk management. Our team understands the automotive industry and delivers solutions to reduce claims and save money.
Competitive Pricing
We work with specialized underwriters and carriers to offer the most coverage for your dollar, helping you stay profitable while staying protected.
Claims Support That Works for You
In the unfortunate event of a loss, our subject matters experts will help you though the claims process, minimize downtime, and recover value efficiently.
Learn More About the Insurance Required to Protect your Business
Dealers Open Lot Insurance | Errors and Omissions | Garagekeepers | Garage Liability | Commercial Auto | Employee Liability | Property | Workers’ Compensation | Pollution Liability | Cyber Liability | Rental Insurance | On-Hook Towing | Cargo Towing | Vehicle Leasing | General Liability | Excess Liability
