On-hook liability
Damage to the customer vehicle while it is being towed.
Business Insurance
Tow truck insurance on the hook and on the lot.
Two customer vehicles are at risk at once: the one behind you, and every one sitting in your yard. Different policies cover each.
Towing operators handle other people's vehicles constantly, and the insurance follows that in two distinct pieces. On-hook cover protects the vehicle you are currently towing. Garage keepers protects the vehicles stored on your lot. Neither is included in a standard commercial auto policy, and operators who assume otherwise discover it at the worst possible moment.
On-hook and garage keepers are not the same thing
On-hook legal liability covers damage to the customer vehicle while it is attached to your truck, in transit. Garage keepers covers vehicles in your care, custody and control at your premises — the impound lot, the yard, the storage area.
A tow that ends in a storage yard passes from one cover to the other. Both need to be present, and both need limits that reflect reality: a lot holding twenty vehicles needs a garage keepers limit that could replace more than one of them.
Repossession and police rotation work
Repossession work carries a wrongful repossession and conversion exposure that ordinary towing does not, and many carriers exclude it unless it has been declared and rated. If you do any repo work, say so.
Police rotation and municipal contracts typically impose their own insurance requirements, often with higher limits and specific additional insured wording. Send us the contract before you bid so the programme is written to satisfy it.
What it covers
The parts of a tow truck insurance policy
Garage keepers
Customer vehicles stored at your yard, lot or impound facility.
Liability
Injury and third-party property damage arising from operations.
Physical damage
Collision and comprehensive on the tow trucks themselves.
Contract requirements
Higher limits and additional insured wording for police rotation and municipal work.
Workers compensation
For drivers working roadside, which is genuinely hazardous work.
Working with us
What we do differently
We are an independent agency, so we place your tow truck insurance across several carriers rather than fitting you to one company's product. That means a genuine comparison, and someone to call who is not a call centre.
- Carry both on-hook and garage keepers — they cover different moments
- Set the garage keepers limit against a realistic worst case for your lot
- Declare repossession work; it is excluded on many forms unless rated
- Check municipal and rotation contracts before bidding, not after
Common questions
Tow Truck Insurance, answered
What is on-hook coverage?
It covers damage to the customer's vehicle while it is attached to your truck and in transit. It is not part of a standard commercial auto policy and has to be arranged specifically.
Does on-hook cover vehicles in my yard?
No. Once the vehicle is off the hook and stored on your premises, garage keepers cover applies. Towing operators generally need both, since a job frequently moves from one to the other.
How much garage keepers cover do I need?
Enough to respond to a realistic loss across the lot, not the value of one vehicle. A fire or hail event affects everything parked there at once, which is how these limits are exhausted.
Is repossession work covered?
Only if declared and rated. Repossession carries wrongful repossession and conversion exposure that many policies exclude, so it needs to be on the application rather than discovered later.
What do police rotation contracts require?
It varies by municipality, but expect specified limits, additional insured wording and sometimes proof of garage keepers at a stated figure. Send us the contract and we will confirm the programme meets it.
Related cover
Often arranged alongside this
Garage Keepers Insurance
The moment a customer hands you their keys, their vehicle becomes your exposure. Your property policy does not cover it and neither does theirs, reliably.
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