Do you own a repo business? If not, are you thinking of starting one? A repo business can be quite lucrative. However, this line of work comes with a lot of risks. Every time you go on a job, you are at risk. There is the risk of driving and towing the vehicles safely. Also, there is the risk of angry vehicle owners damaging your tow truck.
If you tow disabled vehicles, then you need specialized tow truck insurance. Just having regular truck insurance is not enough. However, rates for tow truck insurance can be expensive. In fact, many insurance carriers have raised their rates as towing vehicles can be risky.
Do you own a garage and operate a tow truck? If so, then you might need a garagekeepers policy. Garagekeepers insurance policies provide protection for a vehicle while it is in your garage. It protects the customer’s vehicle while it is parked or stored at your location. Covered events can include:
Tow truck operators are responsible for moving stalled, wrecked, or damaged vehicles from one place to another. What happens if the vehicle that you are towing is damaged while in your possession? You could be liable for repair or replacement costs. (And that’s why it’s so important to get the right tow truck insurance.)
For example, let’s say that you own a garage.
If you own a small landscaping business, you probably try to save money every way that you can. In an effort to save, you might even insure your landscaping trucks and trailers on your personal auto policy. However, this is almost the same as not having any insurance at all. If you are in an accident or damage a customer’s lawn with your truck, this decision will come back to haunt you.