As a towing business owner, you understand the importance of protecting your assets and liabilities. Whether you operate a small towing company with a single truck or manage a large fleet of wreckers, having the right insurance coverage is crucial to safeguarding your business against unforeseen risks. In this comprehensive guide, we will explore the ins and outs of wrecker insurance, providing you with valuable insights to help you make informed decisions and ensure adequate protection for your towing business.

Understanding Wrecker Insurance 

What is Wrecker Insurance? 

Wrecker insurance, also known as tow truck insurance, is a specialized type of commercial auto insurance designed specifically for towing businesses. It provides coverage for various risks associated with operating tow trucks, including property damage, bodily injury, theft, and collision.

Why is Wrecker Insurance Important? 

Operating a towing business comes with inherent risks, such as accidents, vehicle breakdowns, and property damage. Without proper insurance coverage, your business could be exposed to significant financial liabilities and legal consequences. Wrecker insurance helps protect your assets and ensures that your business can continue to operate smoothly in the event of an unforeseen incident.

Types of Wrecker Insurance Coverage 

Liability Insurance 

Liability insurance is the most basic form of coverage required for towing businesses. It provides protection against claims for bodily injury and property damage caused by your tow trucks while in operation.

Physical Damage Coverage 

Physical damage coverage protects your tow trucks against damage caused by collisions, vandalism, theft, and other covered perils. This coverage is essential for ensuring that your vehicles can be repaired or replaced quickly in the event of an accident or other covered incident.

On-Hook Insurance 

On-hook insurance provides coverage for vehicles that are in tow by your tow trucks. It protects against damage to the vehicles being towed while they are in your care, custody, and control.

Garagekeepers Insurance 

Garagekeepers insurance covers damages to vehicles that are stored at your towing facility. It provides protection against fire, theft, vandalism, and other covered perils while the vehicles are on your premises.


Wrecker insurance is a critical component of protecting your towing business against unforeseen risks and liabilities. By understanding the various types of coverage available and selecting the right insurance policies for your business needs, you can ensure that your assets are adequately protected and that your business can continue to operate smoothly in the face of adversity. Take the time to assess your insurance needs, work with a reputable insurance provider, and invest in comprehensive wrecker insurance coverage to safeguard your towing business for the long term.