Running a towing operation comes with unique risks and challenges that require specialized insurance coverage. Whether you’re dealing with vehicle accidents, on-hook damage, or garage liability, having the right insurance in place is crucial. To help you navigate your options, we’ve compared seven leading insurance carriers that offer comprehensive coverage for towing businesses: Progressive, The Hartford, Berkshire Hathaway GUARD, KBK Insurance Group, Travelers, Liberty Mutual, and Berkshire Hathaway Homestate Companies (BHHC). The great news is that Vantage Point Risk has access to all of these carriers, providing you with a wide range of choices to find the perfect fit for your needs.
Types of Coverage Towing Operations Need
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General Liability (GL): Protects against third-party claims for bodily injury and property damage that occur as a result of your business operations.
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Commercial Auto Insurance: Covers your towing vehicles in case of accidents, damage, or theft.
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On-Hook Towing Insurance: Provides protection for vehicles being towed by your trucks.
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Garagekeepers Legal Liability: Covers damages to vehicles stored in your garage or lot.
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Physical Damage Coverage: Includes collision and comprehensive insurance for your towing vehicles.
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Workers’ Compensation: Covers medical expenses and lost wages for employees injured on the job.
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Property Insurance: Protects your business property, including garages, offices, and equipment.
Special Coverage Limits for Contracts
When working with government agencies or entering into special contracts, towing operations may be required to have higher coverage limits. Here are some common scenarios where higher limits might be necessary:
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Government Contracts: Contracts with federal, state, or local governments often require higher liability limits, such as $1 million per occurrence and $2 million aggregate.
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Municipal Contracts: Local municipalities might require higher limits for liability and physical damage coverage to ensure they are fully protected.
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Corporate Contracts: Large corporate clients may require higher limits to cover potential damages and liabilities that could arise from towing their vehicles or equipment.
Carrier Comparisons
Progressive Commercial
Coverage Options:
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General Liability
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Commercial Auto Insurance
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On-Hook Towing Insurance
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Garagekeepers Legal Liability
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Physical Damage Coverage
Special Coverage Limits:
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Can accommodate higher limits required by government or corporate contracts, including up to $1 million in general liability and higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $8,000 – $12,000 per year
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5 Trucks: $20,000 – $30,000 per year
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10 Trucks: $35,000 – $50,000 per year
Strengths:
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Competitive pricing and discounts.
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Comprehensive coverage options tailored for towing operations.
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Strong financial stability and claims handling reputation.
Weaknesses:
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May have higher premiums for high-risk operations.
Why Choose Progressive? Progressive is ideal for towing businesses looking for a wide range of coverage options at competitive prices. Their strong reputation in claims handling adds an extra layer of reliability.
The Hartford
Coverage Options:
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General Liability
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Commercial Auto Insurance
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Property Insurance
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Business Owner’s Policy (BOP)
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Garagekeepers Legal Liability
Special Coverage Limits:
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Offers high liability limits (up to $2 million) and customizable policies for specific contract requirements, as well as higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $9,000 – $14,000 per year
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5 Trucks: $22,000 – $33,000 per year
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10 Trucks: $38,000 – $55,000 per year
Strengths:
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Comprehensive BOP options.
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Excellent customer service and claims handling.
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Strong financial stability.
Weaknesses:
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Coverage options may be more expensive compared to other carriers.
Why Choose The Hartford? The Hartford is a great choice for towing operations that want comprehensive bundled policies and top-notch customer service. While it may come at a higher cost, the quality of coverage is hard to beat.
Berkshire Hathaway GUARD
Coverage Options:
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General Liability
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Commercial Auto Insurance
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Garagekeepers Insurance
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Workers’ Compensation
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Physical Damage Coverage
Special Coverage Limits:
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Can provide higher limits to meet government and corporate contract requirements, including up to $2 million in liability and higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $7,500 – $11,000 per year
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5 Trucks: $18,000 – $28,000 per year
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10 Trucks: $32,000 – $48,000 per year
Strengths:
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Strong focus on commercial insurance.
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Comprehensive coverage tailored for towing operations.
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Competitive pricing.
Weaknesses:
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Availability and coverage options may vary by region.
Why Choose GUARD? GUARD is known for its competitive pricing and tailored coverage for towing businesses. If you’re looking for a cost-effective solution with strong coverage, GUARD could be the right fit.
KBK Insurance Group
Coverage Options:
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General Liability
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On-Hook Towing Insurance
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Garagekeepers Insurance
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Property and Equipment Coverage
Special Coverage Limits:
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Flexible policies that can be adjusted to meet higher coverage limits, including up to $1 million in liability and higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $8,500 – $13,000 per year
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5 Trucks: $21,000 – $32,000 per year
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10 Trucks: $36,000 – $52,000 per year
Strengths:
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Specialized focus on towing and recovery businesses.
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Customizable coverage options.
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Industry-specific expertise.
Weaknesses:
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Smaller carrier, which may affect claims handling and customer service availability in some regions.
Why Choose KBK? KBK’s specialized focus on the towing industry means they understand your unique needs and offer tailored coverage options. Their industry expertise is invaluable for businesses seeking highly specific insurance solutions.
Travelers
Coverage Options:
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General Liability
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Commercial Auto Insurance
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Garagekeepers Insurance
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On-Hook Towing Coverage
Special Coverage Limits:
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Can accommodate high-limit requirements for government and corporate contracts, including up to $2 million in liability and higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $10,000 – $15,000 per year
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5 Trucks: $24,000 – $36,000 per year
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10 Trucks: $40,000 – $60,000 per year
Strengths:
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Strong financial stability and claims handling.
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Comprehensive coverage options.
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Extensive experience in commercial insurance.
Weaknesses:
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Can be more expensive compared to some other carriers.
Why Choose Travelers? Travelers is well-suited for towing businesses that prioritize comprehensive coverage and reliable claims handling, even if it means a higher premium.
Liberty Mutual
Coverage Options:
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General Liability
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Commercial Auto Insurance
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Garagekeepers Insurance
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On-Hook Towing Insurance
Special Coverage Limits:
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Offers higher liability limits to meet contract specifications, including up to $2 million in liability and higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $9,500 – $14,000 per year
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5 Trucks: $23,000 – $34,000 per year
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10 Trucks: $39,000 – $56,000 per year
Strengths:
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Strong financial stability.
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Comprehensive coverage options tailored for towing operations.
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Wide network of agents and strong customer service.
Weaknesses:
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Premiums can be higher for high-risk operations.
Why Choose Liberty Mutual? Liberty Mutual offers robust coverage options and a wide network of agents to assist you. Their strong financial stability ensures that you can rely on them in times of need.
Berkshire Hathaway Homestate Companies (BHHC)
Coverage Options:
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General Liability
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Commercial Auto Insurance
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On-Hook Towing Insurance
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Garagekeepers Insurance
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Workers’ Compensation
Special Coverage Limits:
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Can provide higher limits to meet specific contract needs, including up to $2 million in liability and higher on-hook and garagekeepers coverage.
Estimated Premiums:
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1-2 Trucks: $8,500 – $12,500 per year
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5 Trucks: $21,000 – $30,000 per year
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10 Trucks: $35,000 – $50,000 per year
Strengths:
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Strong financial stability and backing by Berkshire Hathaway.
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Comprehensive and customizable coverage options.
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Excellent customer service and claims support.
Weaknesses:
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May have more stringent underwriting criteria.
Why Choose BHHC? BHHC provides robust coverage with the financial strength and stability of Berkshire Hathaway. They offer comprehensive and customizable insurance solutions that are ideal for towing operations seeking reliable and extensive coverage.
Conclusion
Choosing the right insurance carrier for your towing operation is a critical decision that can impact your business’s financial health and operational security. Each of these carriers—Progressive, The Hartford, GUARD, KBK, Travelers, Liberty Mutual, and BHHC—offers unique strengths and coverage options tailored to the towing industry. With Vantage Point Risk having access to all these carriers, you can benefit from a broad range of choices to find the perfect insurance solution for your towing business.
Need help deciding? Contact us today for a personalized consultation to find the best insurance solution for your towing business!
