Do You Have General Liability Insurance for Your Towing Business?
You’ve invested significant time and money into your towing company. The last thing you want is one employee or client mistake to result in a lawsuit that wipes out your business. General liability insurance protects your company against unanticipated losses associated with injuries incurred by your customers and their property. It’s a comprehensive type of insurance that most businesses should have.
What does general liability insurance cover?
General Liability Insurance covers injuries or damages related to your customers and their property. It does not cover your equipment or a building you own. Whenever you see the words “liability insurance,” it means the insurance protects you if you are sued. In that regard, it does not cover injuries incurred by employees unless they took up a lawsuit against you. (Workers compensation insurance would cover typical worksite injuries.) Examples of risks covered include:
- Property damage
- Medical payments
- Bodily injury
- Personal and advertising injury
- Legal defense and judgment
For example, if one of your employees accidentally fails to properly secure a customer’s vehicle to the tow bed of the truck and it subsequently rolls off and causes a motor vehicle accident with sustained injuries, your towing company would be liable for damages incurred by multiple people. Without general liability insurance to cover the losses, one mistake like this could destroy the business. Depending on how the company is structured, losses could impact the owner’s personal finances, too. General liability insurance protects against these risks.
Is general liability insurance for your towing business expensive?
In the whole scheme of expenses related to running a business, general liability insurance isn’t expensive. Most policies cost between $450 and $1,500 per year for $1 million of coverage. Many factors can impact the cost of your policy, including:
- Where your business is located.
- The amount of your deductible. A higher deductible will lower the premium.
- The size of your business.
- Limitations of coverage within the policy.
Where can I get general liability insurance?
You should begin by calling your insurance provider already in place. The company that protects you against theft, fire damage, or other business losses can likely supply you with information about general liability insurance. It’s a good business practice to review your insurance policies at least every three years and compare rates against competitors in the marketplace to ensure you’re getting the best value for your dollars.
Keeping your business safe against losses requires quality equipment, too.
Collins has been an industry leader in the towing equipment industry for over 45 years. Our Hi-SpeedⓇ Dolly and Carrier Dolly systems provide towing professionals with lightweight solutions durable enough to get even large vehicles out of challenging situations and transport them safely wherever they need to go. Our products are designed with safety first to keep your employees safe while attaching and moving vehicles. Visit our website or give us a call to learn more about our products.