On-hook towing

How does on-hook towing coverage work for a towing company?

A tow company takes on other people's vehicles every day. Once a car or truck is attached to your wrecker, you are responsible for it. If it is damaged during the tow, in loading, or in transit, the owner can hold you responsible. On-hook towing coverage is the policy that generally responds to that damage, up to the policy limit, less your deductible.

Where on-hook sits among a tow company's coverages:

• Liability for your wrecker (the harm it does to others on the road): primary auto liability.
• The vehicle on your hook: on-hook towing.
• The vehicle in your yard or shop: garagekeepers liability.
• Your own wrecker: physical damage.

Points that decide how it works:

• What "on the hook" means. Some policies cover from the moment of hookup to the moment of release. Others have narrower or broader definitions, including loading and unloading.
• Limit per tow. Heavy-duty tows involve vehicles with a higher value than light-duty ones. A limit that fits light-duty work may fall short on a loaded commercial vehicle.
• Covered perils. Collision and overturn, and sometimes theft, fire, and other causes.
• Cargo and contents. Freight inside a towed vehicle is often not covered by the same limit, or at all.
• Which wreckers are covered. Coverage typically applies to the units listed on the policy.

What does on-hook towing cover, and what doesn't it?

Policies vary. Read your declarations, definitions, and exclusions. In general:

Often covered

• Physical damage to a customer's vehicle while it is hooked up and in tow, up to the limit
• Damage during loading or unloading, under many policies, depending on the definition
• Covered causes of loss as the policy defines them

Often not covered, or covered only with conditions

• The vehicle once it is off the hook and in your care at the yard. That is garagekeepers liability.
• Cargo or contents in the towed vehicle, under many policies
• Damage your wrecker causes to other vehicles or people. That is primary auto liability.
• Your own wrecker. That is physical damage.
• Pre-existing damage to the towed vehicle
• Unlisted wreckers and units the policy doesn't describe
• Towing outside the area or type of work the policy describes, such as a different radius or load class
• Wear and tear, and mechanical failure of the towed vehicle

Pre-existing damage is the most common dispute. Photograph the vehicle at hookup and note its condition on the work order.

What affects the cost of on-hook towing coverage?

We don't publish prices. Cost is set by insurers and the licensed agents you work with. The factors that generally move it:

• Limit per tow. The most the policy pays for one towed vehicle
• Type of towing. Light-duty, medium-duty, or heavy-duty, and the values involved
• Number of wreckers and drivers
• Radius. Local calls, or long-distance and interstate tows
• Type of work. Roadside, accident recovery, repossession, or contract work such as motor club or police rotation
• Deductible
• Claims history and experience
• Safety practices. Loading procedures and documenting condition before the tow

Who typically needs on-hook towing coverage?

• Towing and repair: The main audience. Any company that tows vehicles for others.
• Small fleets: A fleet that has its own wrecker for breakdowns may still want to ask. A tow of your own unit is generally not a customer's vehicle.
• New authority: If you are adding towing as a service, ask how your current policies treat vehicles on your hook.
• Couriers: Not a typical fit. Mentioned only because box-truck operators who tow trailers should read their policy's definitions.

Heavy-duty and light-duty work are different exposures. Tell your insurance agent which you do.