Risk Management for Towing Operations


Running a tow-truck business can be a very challenging enterprise. It requires managing a skilled workforce that typically operates continuously, serving a large geographic area, engaging in physically challenging work, and dealing with individuals who are upset about car troubles or parking issues. It also carries a variety of different liability concerns; operating a large vehicle in addition to transporting and stowing people’s vehicles presents significant liability risks. Tow-truck operators have to take extensive precautions in order to avoid unnecessary liability exposure.

Thorough Training

It’s important to establish policies and training initiatives aimed at helping drivers drive safely. Thorough and effective accident prevention training is an essential part of reducing the risk of vehicle damage or personal injury.

Comprehensive Insurance Coverage 

In order to manage a towing business, it’s imperative to maintain comprehensive insurance coverage. Statutorily required coverage levels or insurance for towing operations may vary depending on the state that you work in. Source: gainins.com/. Your individual coverage needs will depend on your business’ size and activities.

Effective Security

If your towing company also stores vehicles, you’ll need to establish effective security measures that can help protect stored vehicles from loss or damage. Gated perimeters, an electronic access control system, and video surveillance can help to protect against trespassers. In addition, you’ll need to include a garage keepers policy to your insurance coverage.