Looking for Towing Operations Insurance?
Your tow trucks are on the road constantly, hooking up to vehicles you've never seen before, often in dangerous conditions—accident scenes, roadsides, parking lots at night. Every tow is a risk. The vehicle you're transporting could fall off the hook. Your driver could cause an accident. A vehicle in your storage lot could get stolen or damaged. Garage liability insurance with on-hook coverage is designed exactly for towing operations like yours. It protects the vehicles you transport, covers your liability on every call, and in most states, you need it to get your towing license in the first place.
What is Towing Operations Insurance?
Garage liability insurance for towing operations is specialized coverage that protects your business from the unique risks of towing, recovery, and vehicle storage. It combines general liability for your premises and operations with commercial auto coverage for your tow trucks and on-hook coverage for the vehicles you transport. Unlike regular commercial auto insurance, garage liability understands that you're constantly handling property that belongs to other people—every vehicle you hook up represents someone else's asset that you're now responsible for. On-hook coverage specifically protects those vehicles while they're being towed. Garagekeepers coverage protects them once they're in your storage lot. If your state or municipality requires a towing license, you almost certainly need proof of garage liability coverage to obtain or renew it.
Garage Liability
Covers third-party bodily injury and property damage from your towing operations. If your driver causes an accident responding to a call, if someone gets hurt at your yard, or if your operations damage property—garage liability responds. This is the foundation of your towing insurance and what licensing authorities require.
On-Hook Coverage
This is essential for towing companies. On-hook coverage protects vehicles while they're being transported on your tow truck—whether on a flatbed, wheel-lift, or traditional hook. If the vehicle you're towing falls off, gets damaged in an accident, or is somehow harmed during transport, on-hook coverage pays for that damage. Without it, you're personally liable for every vehicle you tow.
Garagekeepers Coverage
Protects vehicles once they're in your storage lot or impound yard. Vehicles can sit in your yard for days or weeks waiting for owners to pick them up. Garagekeepers coverage protects those vehicles from theft, vandalism, fire, weather damage, and collision while in your care. If a vehicle gets stolen from your lot or damaged by a storm, this coverage responds.
Physical Damage for Tow Trucks
Comprehensive and collision coverage for your actual tow trucks. Your trucks are expensive specialized equipment—a new flatbed can cost $100,000 or more. This coverage repairs or replaces your trucks if they're damaged in an accident, stolen, or destroyed by fire or weather.
Who Needs Towing Operations Insurance?
- General Towing Companies : Companies handling a mix of roadside assistance, accident towing, and private property impounds need comprehensive garage liability with strong on-hook coverage
- Police Rotation Towers : Towing companies on police rotation lists face higher exposure—accident scene towing, impounds, and unpredictable vehicle values require robust coverage
- Roadside Assistance Providers : Companies contracting with motor clubs for lockouts, jump starts, tire changes, and towing need coverage that satisfies motor club requirements
- Repossession Companies : Repo operations face unique risks including confrontations and damaged vehicles; specialized garage coverage addresses these exposures
- Heavy-Duty and Commercial Towing : Companies towing semi-trucks, buses, and heavy equipment face higher values and need limits that match the vehicles they transport
Why Harper?
We Understand Towing Operations
Towing isn't a 9-to-5 business. You're responding to calls at 2 AM, working accident scenes with traffic flying by, hooking up to vehicles in flooded parking lots. Harper Insure structures coverage for how towing actually works—24/7 operations, varying vehicle values, dangerous roadside conditions, and the reality that every call is different. We don't write policies based on some theoretical towing company that only operates during business hours on clear days.
On-Hook Limits That Protect You
The vehicle you tow might be a $3,000 beater or a $150,000 luxury car—often you don't know until you get there. Harper Insure helps you set on-hook limits that actually protect your business. If you're doing police rotation towing, you might hook up to anything. If you primarily do roadside assistance, your exposure is different. We tailor your limits to your actual operations so you're not underinsured when you tow something valuable.
Fast Certificates for Licensing and Contracts
Towing licenses, police rotation contracts, and motor club agreements all require proof of insurance. Delays mean lost revenue—you can't answer calls without proper coverage in place. Harper Insure delivers certificates quickly, formatted correctly for whoever needs them. Most clients get their certificates the same day they purchase their policy.
Claims Handling That Doesn't Slow You Down
Towing claims happen. Vehicles get damaged during transport. Accidents occur on the way to calls. When they do, you need claims handled efficiently so you can keep your trucks on the road. Harper Insure has experience with towing claims—we understand the scenarios, we don't ask unnecessary questions, and we work to resolve issues quickly so your business keeps moving.
Frequently Asked Questions
Do I need garage liability to get my towing license?
In most states and municipalities, yes. Licensing authorities typically require proof of garage liability insurance with minimum limits before issuing or renewing your towing license. The specific requirements vary by location—some require $300,000 in limits, others require $1,000,000 or more. Harper Insure provides certificates formatted to meet your local licensing requirements.
What's the difference between on-hook coverage and garagekeepers coverage?
On-hook coverage protects vehicles while they're being transported on your tow truck. Garagekeepers coverage protects vehicles once they're parked in your storage lot or impound yard. You need both—on-hook for the tow itself, garagekeepers for storage. Many claims happen in the yard (theft, vandalism, storm damage), so don't assume on-hook coverage is enough.
What happens if a vehicle falls off my tow truck?
Your on-hook coverage responds to damage that occurs to vehicles during transport, including if a vehicle falls off your truck or is damaged in an accident while being towed. The on-hook coverage pays to repair or replace the damaged vehicle up to your policy limits. This is why having adequate on-hook limits is critical—you're responsible for vehicles the moment you hook up to them.
Does my coverage protect me if I damage a vehicle while hooking up to it?
This depends on your specific policy and circumstances. On-hook coverage typically covers vehicles during transport, but damage that occurs during the hookup process may be handled differently. Harper Insure can review your operations and structure coverage to protect against the specific risks you face, including damage during hookup.
How much on-hook coverage do I need?
This depends on the types of vehicles you typically tow. Consider the most expensive vehicle you might realistically hook up to. If you're on police rotation, you could be towing anything from economy cars to luxury vehicles or commercial trucks. If you do heavy-duty towing, you're dealing with expensive commercial equipment. Harper Insure helps you determine appropriate limits based on your actual operations—being underinsured on one expensive tow could cost you more than years of premium.
Do I need coverage for my storage lot?
Yes. Garagekeepers coverage protects vehicles stored in your yard from theft, vandalism, fire, storm damage, and collision. Vehicles can accumulate in your lot—impounds, abandoned vehicles, cars waiting for owners. Without garagekeepers coverage, you're personally responsible for any damage or theft that occurs while vehicles are in your care. Many towing companies underestimate this exposure until they have a claim.