Towing Insurance | Workers' Comp
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Workers' Comp Coverage for Towing Businesses
Workers compensation for your towing business can be hard to find and pretty expensive to purchase. Depending on your hours of operation and state, it may be impossible to get coverage outside your State Insurance Fund. However, we're working hard to create better insurance programs for towing companies in most states across the U.S.
We've been helping tow truck owners find easy and affordable coverage for over 15 years. Our experts understand the insurance requirements from the insurance companies and we know how to negotiate the lowest rates on coverage. That's why we've developed towing programs designed to help you get the best rates and most flexible payment options.
We partner with the best carriers writing coverage.
Improve cashflow and reduce the potential for big audit bills.
Get quotes from multiple insurance companies to ensure the lowest rates.
Our carriers have experienced claim managers to close claims quickly.
Our Top Towing Insurance Companies
AmeriSafe Insurance Company is a specialty carrier who write hard to place risks. They offer good rates and loss control services.
Accident Fund Insurance Company of America has a direct focus on writing workers comp coverage for tow truck operations.
ICW specializes in workers compensation coverage for a broad range of well-managed industries and class codes.
Benchmark has competitive rates and they provide coverage for towing, recovery companies and wrecker services.
Normandy Insurance is a diverse, fast growing insurance company underwriting a broad range of risk classes and industries.
UBIC offers excellent rates as well as loss control resources for towing services and recovery companies.
Pie Insurance is one of the newest national insurance companies. They have leveraged technology and offer low rates on coverage.
SouthEast Leasing is an affordable alternative to buying workers comp from state fund carriers. They provide payroll work comp coverage.
Cimarron is a fast growing insurance company providing Pay As You Go coverage for most NCCI class codes.
Shop coverage like a Pro.
Workers' Compensation Codes Related to Towing
Employees are grouped into classification codes based on their job duties and work functions. The National Council on Compensation Insurance (NCCI) currently utilizes nearly 800 class codes to help insurance companies and agents categorize employees for rating purposes. Insurance companies set a base manual rate for each class code in order to begin pricing a policy.
Properly classifying workers is an important part of the quote process. Mis-classified employees can cost small businesses thousands of dollars. You could end up paying too much for coverage or owing more money after an annual audit.
Class Code 7225 | Towing Company
Tow truck companies are primarily engaged in towing light or heavy motor vehicles. The towing distance may include local and long distance towing. It's common for these companies to provide other related services including vehicle storage and emergency roadside assistance. Tow trucks include rollbacks, flatbeds, wheel lifts and hook and chain vehicles.
Repossession services are typically included under class code 7225. However, these companies may be subject to more underwriting review due to the additional risks associated with repo insurance. Underwriters evaluate and price tow truck companies on many factors besides the class codes. Towing companies who travel smaller areas, don't provide 24-hour services, and don't do repossession typically get lower rates and more quote options.
See Also:
Alternative State Class Codes for Tow Trucks:
Sometimes a state will deviate from the industry class code recommended by NCCI. Instead of the NCCI code, they may require the utilization of a state specific class code for certain business segments.
The tow truck class includes employees who work on the lot including mechanics and employees working at an impound lot.
| Class Code | State |
|---|---|
| 7227 | Towing Service | California |
| 7208 | Towing Company | Michigan |
| 815 | Automobile Towing and Drivers | Delaware / Pennsylvania |
| 7219 | Towing and Recovery | New Jersey / New York |
Related: tow trucks, motor vehicle towing, auto towing, emergency roadside assistance, wrecker service, roadside service, repossession companies.
Workers Compensation Shop.com is a national Agency, licensed throughout the United States.
Get the Best Towing Insurance Coverage
A lot of small towing businesses are overpaying for insurance coverage because their agent does not have access to the lowest cost insurance companies. Many are stuck in their State Insurance Fund. Other business owners are using installment plans based on estimated payroll that doesn't adjust as payroll fluctuates. We help our customers find the best insurance rates for each unique state and type of business. Our Pay As You Go payment plans will improve your business cash flow. We work with new business owners and companies with higher EMR Ratings. We've been writing tow truck insurance since 2005.
| Program Features |
|---|
| No Minimum Premium Requirements |
| Pay As You Go Work Comp - $0 Deposit |
| Guaranteed Cost and Deductible Options |
| National Tow Truck Insurance Expertise |
| More Markets for More Solutions We shop renewals too |
| Commercial Package Insurance Options |
What Does Workers' Comp Cover?
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
- Loss of income for employees unable to perform job duties
- Medical expenses for employees injured on the job
- Retraining expenses for employees unable to return
- Permanent injury or disability for lasting injuries
- Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
- Injuries resulting from a violation of the law
- Incidents resulting from employees' use fo drugs or alcohol
- Injuries that did not occur in connection with the job
- Clear company policy violations
- Injuries that did not occur in connection with the job
Lower Your Towing Insurance Costs
The cost of business insurance has been increasing for small businesses. General liability and workers' comp insurance have been the major cause of the increase in the cost of coverage. We've partnered with our insurance companies to provide more affordable commercial insurance solutions for our customers. Ask about our package insurance options for tow trucks:
Workers' Compensation and Employers Liability
Tow Truck Liability Insurance
Commercial and Personal Property
Umbrella Liability and more
Not all lines of insurance coverage or all class codes will be available in all states. Contact one of our workers' comp Specialists for program details on general liability and workers' compensation insurance.
Start a quote online or give one of our specialists a call at 888-611-7467.
How Much Does Tow Truck Insurance Cost?
The average rate our customers pay for workers' compensation under the 7225 class code is around $7.00 per $100 of payroll. The average cost for a liability insurance policy is about $8,500.00.
Workers' Comp Costs
- Work Comp is priced based on payroll
- Your state and EMR Rating will affect your cost
- The type of towing work can modify rates
- Premium discounts and policy credits may apply
Tow Truck Liability Costs
- GL rates for towing are based on sales (rated per $1000)
- Gross revenue may affect pricing
- The type of towing matters to underwriters
- Prior clams and years in business affect pricing
- SIC code 7549- Motor Vehicle Towing
Then there's Trusted Service.
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How do I get started?
- Business details, locations, FEIN or SSN
- Estimated annual payroll and job duties- class codes
- Claims info or loss history- if applicable
What Happens Next?
- Our software matches you with top-rated carriers
- Our agents apply and negotiate your lowest rates
- We present and recommend your best options
Ready to Start Your Quote?
Don't settle for cookie-cutter rates
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Ask about our Pay As You Go plans designed to improve cashflow and bullet-proof your audits.
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