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Filling the Coverage Gaps for Your Garage, Towing, and Repossession Clients

Oftentimes, it’s not the specific product liability or technical aspects within a certain business that increase the risk of liability, claims, or lawsuits; instead, it can be based on the attitude with which the market perceives your client’s business. For example, your towing and repossession business clients are far more likely to have negative or, at best, glacially neutral interactions with their customers depending on whether they contract with a city or county or if their business focuses on towing cars in need of repair. Here are some of the additional risk that employees and owners of a towing or repossession company face and for which they should have specific excess liability coverage:


Hook towing liability coverage: A lot of tow trucks use on-hook towing to transport a repossessed or damaged vehicle. Because this method of transportation uses the car’s own tires on the road and keeps the car low to the ground, there is an increased chance for accidental damage and claims of negligence. Having specific coverage for these incidents is critical

Wrongful repossession insurance: Mistakes can happen, and whether it’s your client’s towing company that selected the wrong car or they were operating off of incorrect information, having coverage means that your client can continue on with their day-to-day business while claims are being handled. This is a subset of professional liability coverage that is often excluded entirely from general liability policies and so can be a risky gap in your client’s coverage.


If you’d like to learn more about why Prime Insurance Company is a preferred provider of excess insurance coverage for towing and repossession businesses, please contact us. We’re here to help you and your clients find the right elements of additional coverage for their businesses’ needs.

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