Towing & Recovery Insurance in Massachusetts
Towing and recovery businesses operate in high-risk, fast-moving environments. From roadside calls and accident recovery to vehicle storage and transport, each job involves responsibility for vehicles that don’t belong to you — often under challenging conditions.
Towing and recovery insurance is designed to help address the unique liability and property exposures that come with operating tow trucks, handling customer vehicles, and managing a garage or storage lot.
At Risman Insurance Agencies, we work with towing and recovery companies across Massachusetts to help them understand their risks and explore insurance options aligned with how they operate.
Why Towing & Recovery Businesses Have Unique Insurance Needs
Unlike many service businesses, towing and recovery operators face multiple layers of liability on every call.
Common exposure areas include:
- Accidents involving tow trucks on public roads
- Damage to vehicles while being towed or transported
- Loss or damage to vehicles stored at your facility
- Injuries to employees during roadside or recovery work
- Contractual requirements from municipalities, police departments, or motor clubs
Because these risks overlap, towing insurance is typically more specialized than a standard business or auto policy.
Key Components of Towing & Recovery Insurance
Towing and recovery insurance is not a single policy. It is usually a coordinated package of coverages designed around how your business operates.
Coverage options may include:
Commercial Auto Liability Insurance
Commercial auto coverage applies to the tow trucks and service vehicles your business owns or operates.
It may help address bodily injury or property damage claims arising from covered auto accidents involving your vehicles.
On-Hook Coverage (On-Hook Cargo Liability)
On-hook coverage is designed to address damage to customer vehicles while they are being towed, transported, or lifted.
This coverage is a critical component of towing insurance and is not included in standard auto liability policies.
Garage Liability Insurance
Garage liability coverage may help address certain third-party bodily injury or property damage claims related to your garage operations, premises, or completed work.
This can include exposures at your office, yard, or storage facility.
Garagekeepers Coverage
Garagekeepers coverage may help address damage to customer vehicles while they are stored at your facility, subject to policy terms and limits.
This is especially important for towing companies that impound or store vehicles.
Physical Damage Coverage
Physical damage coverage may help protect your own tow trucks and equipment against covered losses such as collision, fire, or theft.
Workers’ Compensation Insurance
Workers’ compensation insurance is required for most Massachusetts employers and may help support employees injured while performing job-related duties.
Towing and recovery work often involves higher-risk job classifications due to roadside exposure and heavy equipment.
Additional Coverage Considerations
Depending on your operations, you may also need to review:
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Coverage required by municipal or contract agreements
Each towing business is different, which is why coverage should be reviewed holistically.
Why General Business or Auto Insurance May Not Be Enough
Many towing operators assume general business insurance or a basic commercial auto policy is sufficient.
In reality, exposures such as on-hook damage and garagekeepers liability are typically excluded unless specifically added. Reviewing towing-specific insurance options can help reduce costly coverage gaps.
Who Should Consider Towing & Recovery Insurance?
Towing and recovery insurance is commonly reviewed by:
- Independent towing companies
- Accident recovery operators
- Impound and storage facilities
- Municipal or contract towing providers
- Roadside assistance businesses
Many contracts require proof of specific towing-related coverages before work can begin.
Why Towing Companies Work with Risman Insurance Agencies
Experience with transportation and service risks
We understand the operational realities of towing and recovery businesses — from roadside response to vehicle storage.
Independent agency with multiple carriers
As an independent insurance agency, we work with multiple insurance companies and help towing operators compare coverage options based on fleet size, services, and contracts.
Ongoing support as operations change
As equipment is added, contracts change, or services expand, we help review coverage so insurance keeps pace with your business.
Request a Towing & Recovery Insurance Review
If you own or operate a towing or recovery business in Massachusetts, it may be worth reviewing your current insurance program.
Call: 781-396-2116
Request: Contact us online to get started
Insurance coverage cannot be added, deleted, or changed until confirmed in writing from our office.
