Towing Limits
Accidents are not always preventable, which makes having the right policies vital for your business. With the wrong or no coverage, your business operations could halt for longer than necessary due to unforeseen towing expenses. Most often, towing companies are entirely unregulated, meaning almost nothing limits the rates they can charge for their services. Unfortunately, without proper towing coverage, you might be left with a towing bill totaling tens of thousands of dollars.
For Example:
Suppose you are unexpectedly involved in an accident, causing damage to the truck and trailer. Although you might have proper coverage for the damages, without towing coverage, you will pay out-of-pocket towing expenses (unless otherwise stated within your policy). While some providers offer towing coverage as a standard feature within their physical damage policies, you should always check with your insurance agent to clarify your specific policy.
Unscheduled Drivers, Trucks, or Trailers Effect on Towing Coverage
Schedule all trucks, trailers, and drivers on your policies. Even with the proper towing coverage, not scheduling all your trucks, trailers, or drivers voids the towing coverage.
When it comes to owner-operators that carry physical damage coverage, always check to see that they have the proper towing coverage policy. If involved in an accident where they and their truck are unscheduled on your policy, no towing coverage will be permitted. Additionally, for any trailer interchange coverage to apply to towing expenses, the trailer must be hauled by a scheduled truck and driver.
For Example:
Trucking Company C was involved in a major claim in early 2023 causing the driver to be transported to the hospital immediately. Although the insured had towing/storage coverage up to $10k, it was not applicable due to the unscheduled driver. Because the driver was unscheduled, the insured has been left with a tow bill totaling over $48K. The cargo claim was also denied due to the unscheduled driver leaving the insured responsible for not only the tow bill but any cargo damages as well.
Summary
Since towing companies are unregulated, this causes their towing bills to be immensely high. At Marquee Insurance Group, we are happy to discuss your possible towing coverage options and limits to ensure you receive the proper towing coverage for your business. To talk to one of our representatives about your policy coverage, call (833) RING-MIG.
