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Tow Truck Insurance in California - how Much is it?

If you own a tow truck business, whether in California or North Carolina, you’d likely appreciate the freedom of being the boss following your own rules. However, if you don’t have adequate insurance coverage for your company, you may be placing it in jeopardy. According to the National Highway Traffic Safety Administration (NHTSA), California tow truck drivers face twice the natural average risk from South Carolina to New York when it comes to occupational fatalities and injuries.

Understanding your operations’ risks and mitigating those with  California tow truck insurance helps you provide adequate protection for your drivers, operators, and your business, making your brand perform efficiently no matter the conditions. It comes with different coverage options, allowing you to build your policy along with your agent, ensuring it can cover all your business’s specific needs.

To help you understand more about California tow truck insurance and how it can help your business, here’s everything you need to know about it – from its definition, what it covers, to how much it costs.

What is Tow Truck Insurance?

Whether a tow truck operator is driving through the coasts of New Jersey, the dangerous roads of New Mexico, to California’s long highways, they usually work in less-than-ideal circumstances. Working in these dangerous scenarios increases a tow truck driver’s risk of getting into an accident and filing an insurance claim when it’s too late. Luckily, tow truck insurance can provide monetary protection to these hard-working individuals.

Tow truck insurance is a branch of commercial auto insurance, uniquely designed for towing companies. This type of insurance policy offers coverage options that address the towing truck business’ and operators’ specific insurance needs.

What Does Tow Truck Insurance Cover?

According to California law, commercial auto tow trucks operators and owners need to carry a minimum amount of general liability insurance coverage. However, for business owners, it’s their responsibility to keep their workers safe. So, if you own a couple of tow trucks and have several drivers, you’ll need to have additional coverage to protect your business and mitigate any potential claims. 

Besides the insurance tow truck policy, here are other coverage options you can add to your tow trucking firm to let drivers roam around the different states with confidence and safety: 

  • General Liability Insurance

General liability insurance covers commercial property damage and bodily injury caused by the driver or yourself. In California, the state requires you to buy at least $15,000 of general liability insurance for your business and employees. Moreover, general liability insurance can also pay for legal fees when workers or clients file claims against you. 

  • Physical Damage Coverage.

When your truck gets damaged, no matter who is at fault is covered under the physical damage insurance policy. Additionally, your insurance provider may ask that you keep this policy on your vehicles even if you’re leasing it or are currently paying for them. 

  • Workers’ Compensation 

If you own a fleet of tow trucks or lease commercial motor truck cargo vehicles, regular towing insurance won’t be enough, as you’d probably have several drivers working for you. You’ll need workers’ compensation to keep everyone in your organization protected. However, if you’re an owner-operator of a motor truck cargo or towing vehicle, you’ll still need workers’ comp insurance. 

  • On-hook Towing Insurance

A popular insurance coverage option vital for towing firms is on-hook insurance, protecting tow truck operators while pulling other vehicles. It protects drivers when the commercial truck gets damaged – protecting you from a considerable loss. 

  • Garage Keepers Legal Liability

This garage keepers insurance policy provides business owners that provide towing services or handle service stations the adequate protection if their client’s vehicles get damaged by fire, theft, vandalism, or collision while within your properties.

If you’re having trouble finding the right insurance services for your tow truck firm in California, work with an agent to understand the nuances of California tow truck insurance.

How Much is Truck Insurance Tow Policy in California

California truck insurance protects your towing your commercial auto towing business from expensive lawsuits, accidents, and third-party claims made against you. The insurance rates you need to pay yearly will depend on several factors, including coverage options you’ve selected, your business location, routes your drivers take, and your insurance company.

Although the rates vary per firm and whether you take privacy policy or the auto liability, the average cost for metro area businesses with the standard limits of coverage can pay up to $6,000 for insurance per year. In contrast, towing companies with several tickets and accidents can reach over $20,000. It’s best to get a quote from several companies and your proof of insurance to get the protection your business and drivers deserve.

Getting Tow Truck Insurance 

While business owners face similar problems with owners of commercial auto vehicles, the industry experiences some unique risks exclusive to towing. Tow truck insurance covers any company in the United States that solely provides towing services, offering roadside repairs or assistance for damaged personal or commercial automobiles. If you’re running an auto towing business, you’ll need general liability insurance under the tow truck insurance. 

However, remember that every company is unique, so it’s best to contact us to get an independent insurance agent to let us help you find a good tow truck insurance plan. 

When shopping for tow truck insurance, keep in mind to get insurance quotes from several insurers and compare the rates to ensure you’re covered fully – mitigating your risks and keeping your tow truck business flowing. So call us and get the best and appropriate towing insurance coverages you need to ensure your company’s ultimate protection and success.

What is the Coverage of a Commercial Property Insurance?

If you have a commercial property in California, you need to insure property by getting an insurance policy with the right kind of property coverage to protect your commercial property. Some of the coverage for this type of insurance commercial property is damaged due to some natural disasters like storm, theft, fire, and others.  

This form of property insurance is applicable whether the building is owned, leased, or rented. Part of the coverage may also include some assets within the building such as computers, other types of equipment, valuable documents, inventory, satellite dishes, and the like. Property insurers may also offer additional coverage for your property insurance commercials, such as commercial signs, business vehicles, and outdoor fences. This property insurance policy may also protect losses of business income and rebuild or replace costs if the building is damaged or destroyed.

What is not part of this insurance commercial coverage is flooding, so you may want to consider getting flood insurance, terrorist attack, earthquake, damage from the war, nuclear attack, usual wear, and tear. If you or your employees have intentionally neglected the building.

Forms of Commercial Property Insurance

 Operating a business in California can be challenging, so getting insurance for a property is vital to saving you from business income losses if something unfortunate happens to your business. Direct Damage Property Insurance is one type of property insurance policy that you may want to think about. It offers coverage for either the physical damage or loss of the property. This kind of policy coverage covers the rebuilding or the replacement of the property and may include removal and cleanup of debris following a covered disaster. This type of property insurance commercial is very flexible as you can easily remove, adjust, or add some other coverage. 

It may also be essential for you to know the difference between Replacement Cost and Actual Cash Value so you can decide which is better for your business in California. The actual Cash Value is less expensive than a Replacement Cost, but the policy owner usually gets lower than what they have purchased. It is computed based on the value of the items less than the depreciated value. Replacement Cost Value, on the other hand, is more costly, but you are sure that you are given the needed amount that you need to replace your damaged property. This business property insurance is what is appropriate if your business assets are expensive to replace.

If you want an insurance commercial property policy that is easy in the pocket and yet still comprehensive, you may opt to get a BOP or Business Owners Policy as it is a combination of commercial property insurance and general liability insurance. If you are looking for business insurance that will give you some added protection, this type of policy might answer your concern as it covers your business from various claims, including personal injury, property damage, and bodily injury.

Contact us to know more about California’s insurance properties and get the property insurance that best works for your business. 

Other Property Insurance that Complements Commercial Property Insurance

To get maximum protection for your business, you may add another policy to your commercial property insurance, such as extra expense coverage, which pays for the supplementary costs to remain open or minimize downtime before reopening. Business interruption coverage protects against income losses while your business is closed due to property damage, leasehold interest coverage protects you from financial losses when your lease is canceled due to property loss or damage. 

Other policies that may work well with commercial property insurance are commercial vehicle policy, which will cover the damages of your business transportations in case of a break-in or an accident, and equipment breakdown policy, which will pay for damages to specific equipment such as A/C, computers, furnace or boilers.

Commercial property insurance’s average cost is around $500 for the entire year or up to $5,000. Be sure to consult your trusted broker- agent to avoid duplication of coverages. 

How to Avail of a Commercial Property Insurance?

Several factors affect your commercial property insurance, and they are the size of the property, location, age of the building, physical assets that need coverage, etc. To get started with your business insurance, consult a licensed broker- agent whose specialty is commercial policies. Get someone very knowledgeable in commercial property insurance and one that is reliable. 

If you still do not have your insurance agent, try to ask your business contacts for recommendations as they can surely lead you to the one who can offer the best business insurance for your company. Once you have your insurance agent prospects, you first need to confirm their insurance license with the California Department of Insurance (CDI). Try talking to more than one insurance agent so you can compare and choose the best commercial property insurance for your company’s needs. You may also ask if you need to get personal property insurance as well.

Who Needs to Have This Policy?

This kind of insurance is a must-have for different industries which include those who offer professional services like web designers, copywriters, marketing consultants, etc.; skilled tradespeople such as painters, carpenters, homebuilders, etc.; and those in the retail business like restaurants, pet stores, clothing shops, etc.

Whatever type of industry you are in, for as long as you are operating a business, be sure to get the best insurance policy for your business and have the maximum coverage.

 

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