Repossessors face a lot of risk and vulnerability. Along with personal liability, there is a need to consider animal liability with guard dogs, on-hook towing, wrongful repo, and even assault and battery. The truth is that most people don’t like it when their vehicles and other property are being repossessed and this is why insurance for repossessors is so important.
Often, when a repossession happens, people are looking for a reason and a way to fight back. Losing one’s vehicle does not feel good, even if it is justified, so repossessors end up in court. Whether your client has done something negligent or not, legal costs and other damages add up without insurance to back up the business.
Types of Insurance for Repossessors
Of course, nobody wants to face issues during their workday, but it’s an all too common situation for repossessors. Insurance for repossessors ensures that if one of these situations turns into a lawsuit, your clients are not on the hook for legal costs themselves.
Coverages may include tow truck insurance, wrongful repossession insurance, garage keepers insurance, on-hook liability, and drive-away liability. Vehicle physical damage, general liability, errors and omissions, and other additional lines add to your clients’ protection. We understand the risks that repossessors face and work to understand your clients’ specific concerns to provide the innovative, flexible underwriting that they deserve.
Many insurers shy away from providing insurance for repossessors given that this is a specialty risk. At Prime Insurance Company, we are able to meet your clients’ requirements because we work so hard to manage that risk. It all starts with a hands-on partnership with your clients, evaluating their business and its risks so we can provide guidance to mitigate potential claims.
If a client does end up with a claim, we continue with that hands-on, communicative approach. We handle every claim expediently without sacrificing our attention to detail, getting fair results for fair claims. Just as our risk management team is in-house, our legal team is in-house with industry and legal professionals working to serve your clients.
We keep you abreast of work we are doing with your client, with as much detail as you like. We invite producers along on risk management visits and are sure to keep you updated if a client is progressing through a claim.
The Value of Insurance for Repossessors
Lawsuits are a frequent concern in the world of repossession.
In Los Banos, California, a woman sued a repossession company, alleging that the workers entered her property illegally. In light of the ongoing COVID-19 pandemic, she also alleged that they were not wearing protective equipment which necessitated costly sanitization. She is suing for damages under state law that says agents cannot breach the peace to retrieve a vehicle.
A federal lawsuit is underway against a Utah company for its practice of repossessing vehicles while they are in drive-thrus. Again, this was alleged to violate the breach of peace rules. The repo agent is alleged to have blocked the drive-thru exit, then reversed through the drive-thru, ultimately impacting the vehicle.
In Indianapolis, a woman who defaulted on her car loan had her vehicle repossessed through a towing company. When she protested and ordered them off of her property, the towers called the police who handcuffed the woman. She sued the lender and the towing company for violating the fair debt collections practices act, again breaching the peace.
To see just how much these lawsuits can cost, look toward Neenah, Wisconsin. Here, the city must pay $30,000 as their part of a settlement in a federal lawsuit against three police officers involved in a repossession. That $30,000 is on top of $45,000 in legal defense costs after plaintiffs alleged the officers violated their rights, assisting a repossession company without a court order.
Write More Business with Prime Insurance Company
Given that you can offer your clients insurance for specialty risks like repossession through Prime Insurance Company, you can add to your existing markets. We are not here to compete with the business you are already doing. We add to it. Not every insurance company is willing to write for tough risks, but we built our reputation on that, so you can count on us.
Whether it is one piece of a repossession insurance policy or comprehensive insurance coverage for all of their business needs, Prime Insurance Company has what it takes. Use our online application today, call our team at 800-257-5590, or email us at firstname.lastname@example.org. Visit us on Facebook, Twitter, YouTube, LinkedIn, and Instagram and check out our website to learn more about Prime Insurance Company at https://www.primeis.com/.