Who asks a towing company for what
| Who | What they usually want to see |
|---|---|
| Cities, counties & permits | General liability, auto and workers' compensation at the limits in the permit or contract |
| Banks, lenders & SBA loans | Property or auto physical damage with the lender as loss payee, and liability proof at closing and every renewal |
| Enterprise clients & vendor onboarding | General liability, professional or cyber liability, workers' compensation and often an umbrella |
Each of them wants a certificate, and most want it again at every renewal. A live certificate link from the wallet shows today's coverage to every holder and tells them when it changes.
How to check what you already have
- Auto schedule. Every vehicle listed with the right garaging address and use; symbols that include hired and non-owned auto; physical damage with the lender as loss payee where the vehicle is financed.
- Garage declarations. Garage liability limits, then garagekeepers: the limit per location against the value of customers' vehicles on hand, and whether it is legal liability or direct primary.
- General liability declarations page. Three liability numbers matter: each occurrence, general aggregate and the products–completed operations aggregate. Then the forms list: blanket additional insured, waiver of subrogation and primary and non-contributory wording satisfy every contract; scheduled forms satisfy one.
- Workers' compensation information page. Item 3.A must list every state you work in, item 4 must carry the right class codes, and the employers' liability limits should meet what contracts ask. Check that the estimated payroll is close to this year's.
- Umbrella schedule of underlying insurance. Each primary policy listed with the limits the umbrella expects; a gap between the two is uninsured.
- Property section. Limits for building, business personal property and tenant improvements against replacement cost, the coinsurance percentage, the deductible, and whether flood and earthquake are excluded (they usually are).
- Hired and non-owned auto. Look for the symbols 8 and 9 or an endorsement by that name on the auto or general liability policy; without it, staff in their own cars are uninsured on company business.
- Employment practices declarations. Limit and retention, third-party coverage for claims by customers, and whether wage-and-hour claims carry any defence sublimit.
- Business owner's policy declarations. Liability limits on the first page, then the property section: building (if you own), business personal property, business income and the named extras such as spoilage, equipment breakdown or employee dishonesty. Confirm the property values are current.
- Business income. The limit or actual-loss-sustained wording, the waiting period, the period of restoration and whether extra expense is included.
- Crime declarations. Employee theft, forgery, funds-transfer fraud and social engineering each have their own limit; third-party coverage if you work in clients' premises.
What usually goes wrong for towing companies
- On-hook coverage below the value of the vehicles actually towed.
- Impounded vehicles stored on a lot with no garagekeepers coverage.
- A radius or commodity on the application that no longer matches the work.
- Trailer interchange and non-owned trailers left off the policy.
- Garagekeepers written on a legal-liability basis when customers expect direct primary coverage.
- A personal auto policy on a truck with the company name on the door.
What underwriters will ask a towing company
- Truck types and on-hook limits, the storage lot and its security, police rotation and motor club agreements, and driver records
- Gross vehicle weights, radius of operation and commodities hauled
- Driver motor vehicle records, years of experience and turnover
- Any state or federal filings and operating authority
- Number of vehicles on the lot overnight and their typical value
- Whether you store, tow or drive customers' vehicles off premises
Have the answers in the wallet before the renewal and the quote request fills itself in; CoverMatch sends one application to every eligible carrier and lines the quotes up against what you have.
Renewal timing
Audits at year end compare payroll, receipts and subcontractor costs with the estimate, so keep the wallet's size figures and the subcontractor certificates current. Start comparing sixty days before expiration, and ask for the limits the next contract will need rather than the ones the last one did.