On-Hook Towing Insurance
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.
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.
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.