Why General Liability Insurance Isn’t Enough for Tow Truck Operators

If you’re running a tow truck business, having general liability insurance is a good start — but it’s nowhere near enough to fully protect your company.

Many tow truck owners assume that general liability covers all the risks they face. Unfortunately, that misconception can lead to denied claims, major out-of-pocket expenses, or even business shutdowns.

At Cal-Society Insurance Services Inc., we’ve seen too many operators get blindsided because they didn’t know what wasn’t covered. In this post, we’ll break down what general liability actually does — and doesn’t — cover, and what additional policies every tow truck operator should seriously consider.

✅ What Does General Liability Insurance Cover?

General liability insurance protects your business from common third-party risks such as:

• Bodily injury: If someone trips and falls at your office or yard
• Property damage: If you accidentally damage someone’s property while not operating a vehicle
• Legal defense: If someone sues your business for advertising injury or slip-and-fall accidents

While that sounds helpful, it doesn’t apply to your trucks, tows, drivers, or customer vehicles.

❌ What General Liability Doesn’t Cover

Let’s get specific. Here’s what general liability does NOT protect you from:

1. Auto Accidents Involving Your Tow Trucks
   ➤ You’ll need Commercial Auto Insurance for that.
2. Damage to Customer Vehicles During a Tow
   ➤ You’ll need On-Hook Coverage or Garagekeepers Legal Liability.
3. Injuries to Your Drivers While Working
   ➤ You’ll need Workers’ Compensation Insurance.
4. Damage to Equipment or Tools Inside Your Truck
   ➤ You’ll need Inland Marine Coverage for that.
5. Towing High-Value or Specialty Vehicles
   ➤ You may need a custom endorsement or increased limits.

🚨 Real-World Scenario

Imagine this:

One of your drivers is towing a luxury SUV. The SUV slips off the bed due to a faulty strap, causing major damage. The owner sues your business.

If you only have general liability? You’re likely out of luck.
With the right tow truck-specific policies? You’re protected — and your reputation stays intact.

🔐 The Policies Every Tow Truck Business Should Consider

Here’s a basic coverage package Cal-Society recommends for most tow truck operations:

🔍 Not Sure What You Need? We Can Help.

At Cal-Society Insurance Services Inc., we specialize in building custom insurance packages for tow truck operators across California and beyond. Whether you’re just starting out or expanding your fleet, we’ll help make sure you’re protected where it counts.

📞 Call us today for a free policy review [800-773-1663]
💼 Tow smart. Tow safe. Tow insured.