General Liability and Garage Liability for Towing Companies

What does general liability cover for a towing company?

General liability can help pay covered injury or property-damage claims and related legal expenses. For example, it may apply if a customer trips in your office and holds your business responsible for the injury.

Other losses may fall under different policies. A truck accident, damage to a vehicle in your care, or an employee’s injury needs to be reviewed under the relevant commercial auto, on-hook, garagekeepers, workers’ compensation, or employers’ liability coverage.

Garage liability vs. garagekeepers insurance

Garage liability covers liability arising from covered garage operations. If a customer or permit requires it, send us the exact wording so we can check the coverage arrangement you need.

Garagekeepers covers damage to customer vehicles at an insured storage or service location. With legal-liability coverage, your business generally must be legally responsible for the loss. Direct-coverage options can respond differently.

A customer’s injury in your waiting area and damage to that customer’s car at your yard are different insurance issues. Our garagekeepers guide for towing companies explains the coverage for vehicles in your care.

Illinois lists garage liability and garagekeepers as separate requirements for tow truck registration. Check both when arranging your insurance and certificates. See the Illinois Secretary of State guidance.

Coverage for roadside assistance and related services

Describe all your roadside work, including jump-starts, tire changes, battery replacement, winching, and repairs. The insurer needs those details to evaluate the services and coverage.

Ask how the policy covers damage caused while performing a service or after the work is finished. Property in your care can also be subject to exclusions. We’ll help you review those terms before you take on the work.

Insurance terms your customers may request

A roadside network, landlord, or commercial customer may ask for these terms in your policy:

• Additional insured: Extends specified liability protection to another party when provided by your policy or endorsement.
• Primary and noncontributory: Generally calls for your coverage to respond first without seeking contribution from the other party’s insurance, subject to the endorsement.
• Waiver of subrogation: Limits the insurer’s ability to recover certain claim payments from the named party, as described in the endorsement.

We’ll check whether your insurer offers the requested terms and whether they affect the premium. They must be supported by the policy before they’re shown on a certificate. Texas Department of Insurance certificate guidance explains the requirements.

How to compare liability limits

A liability quote may show both an each-occurrence limit and an aggregate limit. The first applies to a covered event. The aggregate is the total available for the applicable claims during the policy period. Check both against your customer’s requirements.

Compare deductibles, covered services, and endorsements as well. A lower premium can come with different coverage or limits.

What information affects your quote?

• Your offices, yards and storage locations.
• Towing, recovery, roadside and repair services.
• Customer access to the property.
• Employees, subcontracted work and other business activities.
• Claims history and required coverage limits.

Let us know before opening another lot, adding repairs, or accepting a new type of work. We can check whether your policy needs to change as the business grows.