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Do you have tow trucks or a tow truck operation? If you answered yes, then most likely, your looking for commercial tow truck insurance quotes.
If not, then any kind of affordable insurance in California will do, right?
This is a true statement, if your zip code is in Los Angeles or Long Beach CA.
As, an experienced trucker, you already understand how the insurance market relates to your industry.
You have been through it enough, to know.
All you truly need, is an insurance professional with great insurance tow truck companies to walk you through the process.
The Process of Buying Insurance?
The process of buying insurance may have changed, but the communication channels for helping others, especially the trucking industry, has not.
This is an important factor for consideration when considering local commercial brokers or agents.
You want to ensure they understand your niche market, or specialty market of tow trucks.
There are special procedures and fillings required for this specific industry type.
So, do not overlook the details of your future investment and security.
Have your current commercial policy reviewed with a second or third, pair of eyes.
If you still do not feel comfortable with the premium amount, coverage or service, move on, until you do.
Insurance for your tow trucks is like protecting a retail business owner, who may own a restaurant for example.
The only difference for simplicity proposes, is one has a moving location.
Yes, there are many varying components, and backend information we could dissect, but just to give you a visual, think of one moving and the other, not.
So, in theory, you are no different.
You are a business owner of your tow truck, if this is the role you have.
If you are an owner of many tow trucks, then, your fleet operation would need a different type of commercial trucking policy.
This is why, it is imperative to seek professional industry advice when it comes to protecting your business and future.
So, now that you understand that finding a specialized insurance broker or agent.
Those, who understand the towing insurance is step 1, lets look at more commercial tow truck tips.
California Insurance Programs
If you own a tow truck business or need coverage for your own vehicle, then you know the limitations California Insurance programs have for your market.
Your not alone, since many tow truck drivers or trucking businesses in California face the task of finding the right coverage for their risk.
This can be frustrating if you are searching for coverage if you were recently denied coverage.
This is because there are only a limited amount of carriers or insurance providers that provide coverage for this risk.
High Risk Market
This is because of the high risk involved in the coverage and claim processing.
Only a handful of programs and options exist if your in this industry.
If you are classified in this industry but also have tickets and accidents on your driving record, then it becomes almost impossible to find affordable rates.
You are now narrowing your options to compare rates.
You may be lucky to find one or two carriers to place your risk if the risk has an added layer of exposure.
Do not get frustrated, even though this alone can become frustrating.
This is because, not only is your classification in the industry labeled as a hard to place risk or high risk insurance.
However, so are the insurance companies who offer these products.
Many commercial auto insurance companies choose to not cover these risks due to the nature of the business.
This only creates the shopping experience to find and compare cheap tow truck insurance even harder.
The Business of Towing
A tow truck business is any business that earns income through several avenues:
If there’s a tow truck in your garage, you just may have a tow truck business.
To protect your business investment, you will need a low cost coverage if you fall into one of the following categories:
Types of Coverage:
Minimum Liability Coverage
The lowest amount of liability coverage on your commercial auto policy that you must maintain is, $750,000 BI/PD.
However, depending on what tow contracts you have you may be required by your contracts to maintain the higher limit of $1,000,000 BI/PD.
Additionally, there are coverage options that are only available to the towing insurance industry.
These include but are not limited to:
Physical Damage Coverage
Under the physical damage section, the tow truck insurance coverage form agrees to pay.
Tis is for loss to a covered auto or its equipment under any of the three separate insuring agreements.
These are labeled as:
Each insurance coverage applies only if one or more coverage symbols and premium are shown in the declarations.
This is why it is paramount to review your towing insurance policy carefully.
When comprehensive coverage applies:
Remember, comprehensive coverage is written with a deductible, but the deductible will not apply to loss caused by fire or lightning.
This is because of the provisos that exist in your policy declarations page.
The physical damage deductible provision, and does not appear here in the coverage agreements.
When specified causes of loss coverage which applies to your policy, will only pay for loss caused by any of the perils specified in the agreement.
A $25 deductible applies only to loss by vandalism or mischief.
You can find this provision in your insurance paperwork.
It is stated in the declarations and does not appear in your coverage form.
When collision coverage applies, it will pay for loss caused by collision with another object or the overturn of the auto.
Not that “collision” does not necessarily mean collision with another vehicle, it can include collision with a tree or a bridge.
This coverage is written with a deductible.
Towing and Labor Costs
The physical damage section on your tow truck insurance includes an agreement for towing and labor costs.
These are incurred when a covered auto is disabled.
This coverage is optional and the amount of coverage for each disablement of an auto will be the limit shown in the declarations.
Special provisions do apply to:
If an automobile is insured for comprehensive coverage, the towing insurance company will pay.
This payment will come under the “comprehensive coverage”:
This usually works to the insured’s advantage.
This is because comprehensive coverage, is usually written with a lower deductible than collision coverage.
However, the insured is given the option of having glass breakage paid as a collision loss.
This removes a possible double deductible if glass breakage and other damage result from a collision.
Common Policy Provisions
Let’s look at some common policy provisions you may find on a commercial truck policy.
These provisions are defined as additions to the policy or endorsements.
The first endorsement is broad named insured.
It is not uncommon for an organization to find itself participating in a venture that is not foreseen when occurrence is arranged.
Under most policies, such unnamed entities must be reported to the carrier for coverage to apply.
ISO General Liability
For example, the ISO general liability form only provides coverage for newly acquired entities in which insured has a majority interest.
The extension is limited to 90 days and does to cover joint ventures and partnerships.
The endorsement is referred to here as a manuscript endorsement that is used to extend a policy to provide automatic coverage.
A common policy provision that specifies the minimum percentage.
This is of insurable value that must be carried on a covered property item.
If the amount of coverage carried is less than what is required by this clause.
This means, any claim payment may be reduced by the same percentage as the deficiency.
Prior Insurance Coverage
Yes, under certain conditions, your insurance company will pay under the current policy for the loss that has occurred under.
This would be the prior insurance coverage you had, when the loss could have been recovered.
The exception however is for the expiration of the discovery period under the prior insurance coverage.
This applies only to the current policy.
The one that took effect on the date of the prior policy termination date.
But, also the same type of loss is covered by the current policy.
Just remember, both covered losses are covered items under each policy.
Time Coverage of Insurance
This feature provides a window of time coverage across both polices.
This is helpful to reduce any gaps in coverage, as long as a crime policy is renewed immediately upon expiration.
Other then that, you are adequately covered on this front.
The most the insurance company will pay on this type of policy is found under the provisional section of your policy.
You can also find the necessary guidelines of each policy.
These are normally found under the conditions agreement.
The only side note to this would statement would be, to maintain the effective date to coincide under the prior policy.
This prior policy had remained in effect, and which ever policy comes out less is the winner.
The overview of this prior insurance condition is as followed:
Coverage has to become effective at the time of termination or cancellation of the prior insurance policy.
The loss would also be covered by the insurance policy that had it been in effect.
This is, when the acts or events causing the loss were committed or occurred during that policy period.
The condition under the insurance policy.
Not in addition to the limits of insurance are limited to the lesser of the amounts recoverable.
This means :
1. The effective date of the coverage or,
2. The prior coverage always remained in effect.
Prior Policy Recovery Amount
For conversation purposes, let’s say a loss did occurred using this example.
If a loss is covered partly by the current policy and partly by a prior policy issued.
This is when, the most paid out would be the amount recovered under the current policy.
Or the prior policy, whichever one is larger.
If a loss covered under this type of condition should take effect then:
Another portion would be covered by any prior cancelled or terminated insurance that was an affiliate of the company.
Or even if it had issued coverage to you or your vested party on the policy, IT would pay the larger of the amount recoverable.
This type of coverage can be found under the prior coverage if applicable.
As we have discussed in many articles and blogs, insurance coverage is not for an insured or vested party involved with the policy to make a profit.
Peace of Mind Coverage
This is not the concept of coverage. It serves as peace of mind to both the party vested but also to maintain the normal functions of daily society.
Yes, coverage protection effects many parties, and not just the insuring parties.
Some, which are involved in the transaction of the process of buying coverage.
To the actual loss or claim of the policy.
There are so many directions the life of an insurance policy takes on. From the initial point of contact to that of filling a claim.
This is why it is paramount to find a highly qualified insurance agent who specializes in just the niche market you need.
They can ensure you are not under protected when you need protection the most.
Makes sure your business operation is represented by a skilled insurance agency located in Los Angeles.
This is your first step of limiting business exposure.
The policy provision that specifies the amount that will be deducted.
This is from any loss to covered property before payment will be made to insure is a deductible.
Although the method of applying the deductible can vary.
But, it normally will fall under one of the following categories, most commonly under the first.
Lets look at some of the most common policy deductibles on a tow truck policy.
These deductibles, as you will learn, are for many business types. So, make sure to find the correct one that represents your needs.
What is straight occurrence deductible?
This is the application of coverage that is applied on a per occurrence basis for loss.
What is Annual or disaster aggregate deductible?
This is the coverage that is a stated amount for all your claims, or for a more specific type of business.
Once this limit has been reached, then no deductible would apply to any other claim.
This means no claim for either the policy year or for a particular disaster.
This all depends on the type of aggregate form that was issued on this policy type.
What is Disappearing deductible?
This is the amount of the deductible that will decrease or lower, as the loss risk decreases.
Normally, you ill not see this until the application of the deductible disappears.
So, review your policy information provided on your declaration page.
This will help point you in the right direction when it comes to adequate coverage.
What is a franchise deductible?
Yes, you got it right.
It is when the loss reaches a certain amount that is agreed and stated applied amount.
This is when the deductible on the policy ceases to apply however.
Examination of records
An ISO common policy condition that gives a carrier the right to examine and audit a company’s policy.
This is up to the time period specified in the provision.
The current ISO common policy conditions form allows for three years.
Occasionally, this is reduced to 1 year to eliminate what is perceived as excessive examination rights by some.
Loss Adjustment Expenses
A term that refers to cost associated with a property loss that may not be fully covered in many property and inland marine forms.
The contracts stipulate that the insured must prove any loss and its amount.
But, are mostly silent on whether costs involved will be treated as of the loss.
Some insurers may be willing to offer a manuscript endorsement to covers such expenses.
These expenses can include the following:
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