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Risky Business

Who pays my Towing costs after an accident

By Shelly Benisch, CIC
Posted Mar 15th 2011 4:43AM

CIS_Logo_25_percent_of_size.jpgHi Everyone, sorry to take so long to blog...the last posting regarding the difference between a Cancellation and a Non-Renewal was important to leave in place for awhile since so many Owner Operators ran into the case of an insurance carrier Non-Renewing this past couple of months.  I believe folks are back on track with coverage in place, so now we can move on to other topics...

...Let's just say for a moment you were driving along, and because of weather conditions or that charging buffalo, you find yourself with your truck on it's side down in a ditch.   You're OK, thank Heavens, but your truck is now seriously disabled and in need of more than a simple tow.  This situation is going to require a couple of large wreckers with some serious lifting equipment. 

How much will this cost?  Who's going to pay for all this? 

Most insurance companies include coverage for this type of loss in the Physical Damage (Comp & Collision) portion of your policy.    It's called "Debris Removal" after an accident.

So even if you have an older vehicle, where you think you only need a "Liability Only" policy, consider throwing a few thousand on for Phys Dam so that if this happens to you, that "Debris Removal" will be covered by your policy. 

It's important to understand, also, that unless you have an endorsement for actual TOWING (like cargo vans & sprinters), then you have no coverage for simple towing of your unit if it simply breaks down.

Hope that clarifies the difference between "Debris Removal" built into a policy that includes Physical Damage, and "Towing" for a simple breakdown.

Shelly Benisch, CIC    Commercial Insurance Solutions (CIS)


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