On-Hook Towing Insurance


On-hook towing insurance will pay to repair or replace a vehicle you don’t own if it is damaged by a collision, fire, theft, explosion or vandalism while you are towing or hauling.


Tow Truck Insurance

Besides the risks associated with ownership and operations of autos, businesses that are engaged in what are called, “towing operations,” require coverages related to liabilities associated with towing and storage of the autos of their customers. On Hook Towing and Garagekeepers coverages are specialized coverages designed for automotive business which tow and store vehicles that are owned by their customers. They protect a customer’s vehicle while it is being towed or while it is being stored for pick up.


What is the Difference Between On Hook Towing Insurance & Garagekeepers Insurance?

On Hook Towing Insurance covers damage to a customer’s car caused while it is being towed. Garage-keepers Insurance covers the physical damage by fire, theft, vandalism or collision to the vehicle while it is being stored at your location for safekeeping and awaiting pickup by the customer.


Who Needs On Hook Towing and Garagekeepers Insurance?

If your business is in the business of towing vehicles that are owned by customers who pay for these services or have their insurance company pay for these services, then your business fits the profile of a business needing On Hook Towing Insurance. Businesses that fit the profile of needing Garagekeepers Insurance are those who hold autos for others for storage or safekeeping.

The State of Colorado requires towing companies to have coverage, “sufficient to cover the value of the vehicle being transported and stored (Colorado State Patrol, 2016)”. In order to provide protection to their business and themselves as they comply with the state law, they purchase On Hook Towing and Garagekeepers Insurance


Types of Businesses that Commonly Need On Hook Towing and Garagekeeprs Insurance

  • Towing Companies
  • Automotive repair facilities with towing operations.
  • Auto dealers with towing operations.


Garagekeepers Coverage Example:

A customer’s car that is being kept overnight in a towing company’s garage is stolen. Garagekeepers Insurance would pay The value of the stolen car up to the limit you select.


On Hook Towing Liability Coverage Example:

You fail to properly secure a customer’s car for towing. The car falls off the tow truck, and collides with a tree damaging both it and the tree. On Hook Towing Liability Coverage will cover damage to the customer’s car as well as the damage to the tree


Other Common Insurance Coverages a business in Towing Operations may need:

Tow Truck Insurance and Garagekeepers Insurance are just two coverages that are needed by businesses that conduct towing operations. Other common possible coverage’s needed by these businesses include:

  • Building Coverage
  • Business Personal Property Coverage
  • Loss of Business Income
  • Equipment and tools (such as equipment needed to jump start a disabled auto.)
  • Employment Practices Liability Coverage
  • Employee Benefits Liability Coverage
  • Cyber Coverage
  • Umbrella Liability Coverage

Business needs and suitability vary greatly, so as you explore the coverage’s needed by your business it is important to work with a professional that has a background in working with automotive businesses and background in providing insurance. Our team has over 55 years of combined experience working with businesses that require Garage and Garagekeepers risks, as well as the specific needs of auto dealers. Our specialization allows us to create safety and compliance programs which are relevant to any business in the automotive industry, and the specialization allows us to create loss prevention solutions equally relevant.  A Good Glossary of Insurance Terms, which includes explanations of coverage’s can be found on the International Risk Management (IRMI) website at www.irmi.com/free-resources/insurance-glossary

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