Florida Tow Truck Insurance Explained

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Whether you are a new operation or an existing Florida Tow Truck company you are going to need insurance. The amount of insurance you need will depend on the scope of your operation as well as your operational area and the type of equipment you are using. Florida law requires you to carry a certain minimum amount of insurance in reference to the parameters above.

Commercial Auto Liability Limits

Florida Tow Truck Insurance minimum levels of combined bodily injury and property damage liability

• Tow Trucks with a Gross Vehicle Weight of less than 35,000 pounds must carry a minimum coverage of $50,000 Combined Single Limit. This limit applies per occurrence.
• Tow Trucks with a Gross Vehicle Weight of 35,000-39,999 pounds must carry a minimum of $100,000 Combined Single Limit. This limit applies per occurrence.
• Tow Trucks with a Gross Vehicle Weight of 40,000 or more must carry a minimum of $300,000 Combined Single Limit. This limit applies per occurrence.

In Tow (On Hook) Coverage Limit Requirements

Florida minimum level of in tow (on hook) coverage

• Tow trucks must carry a minimum of $50,000 in coverage for vehicles that are in tow or on hook.

Storage (Tow Yard) Coverage Limit Requirements

Florida minimum levels of Garage and Garage Keepers coverage required for tow truck operators that are involved in the storage or movement of vehicles when not in tow.

• Florida Tow Truck operators must carry a minimum Garage Liability Limit of $300,000 Combined Single Limit. This limit applies per occurrence.
• Florida Tow Truck operators must carry a minimum Garage Keepers Legal Liability Limit of $50,000 for each loss, covering perils of fire and explosion; theft of a vehicle, its parts or contents; riot and civil commotion; vandalism; and malicious mischief.

Commercial Auto Personal Injury Protection Requirements

Florida minimum level of commercial auto personal injury protection.

• Florida Tow Truck operators must carry Personal Injury Protection with a minimum limit of $10,000 Combined Single Limit. This limit applies per occurrence.

It is very important that you maintain the correct amount of insurance to satisfy Florida State requirements. This prevents you from interruptions in your towing business. It also prevents you from having to pay additional fees and fines for being non-compliant. However, purchasing enough insurance to satisfy the State of Florida is one thing, buying enough insurance to protect you and your business is another. It is very important for you to assess your own level of risk. If you know that you will frequently be towing vehicles that exceed $50,000 in value you would want to purchase more In Tow/On Hook coverage than the $50,000 the state requires. The same goes for your Garagekeepers Legal Liability limit. Having only $50,000 in coverage is not going to be enough if you regularly have vehicles in your possession that are worth far more than $50,000. Ultimately it is important to discuss all of the characteristics of your business with your agent. That way we are able to make suggestions on coverage limits and additional coverage that may be more suitable for your business.

Additional Coverage Options

• Uninsured/Underinsured Motorist Coverage – This is an additional coverage that can be purchased on your commercial auto policy. This coverage provides bodily injury coverage for yourself or a passenger if you are involved in an accident with another motorist and that motorist is at fault. If the at fault party does not have any liability insurance or an inadequate amount of liability insurance you could be stuck with a large amount of medical bills if you are injured. If you carry uninsured motorist coverage then you would have an extra coverage to fall back on in this scenario. It is important to know that since Florida is a No-Fault State your personal injury protection would pay out first before you would be able to use your uninsured motorist coverage.
• Medical Payments – This is an additional coverage that can be added to your commercial auto policy. This coverage provides additional medical injury coverage for you and/or your passengers if you are injured in an accident while driving your vehicle. In Florida this coverage is always secondary to personal injury protection.
• Customer’s Contents Coverage – This can be purchased to provide coverage for personal items owned by your customers that have been left in their vehicle. If there vehicle is burglarized while in your care, custody, or control you can use this coverage to reimburse them for their lost items.
• Physical Damage Coverage – This coverage is needed if you want to be reimbursed for damage to your vehicle/equipment. There are several variations of physical damage coverage but the standard coverage package includes comprehensive and collision coverage with a stated deductible for each. If your vehicle is involved in a covered loss you would be paid the actual cash value of the damage minus your deductible. Most commercial policies will set a maximum limit of payout for physical damage on any one vehicle. This is usually referred to as the “Stated Amount.”” For Example, if you had a tow truck covered for comprehensive and collision coverage with a stated amount of 40,000 your insurance would respond to a loss as follows. After crashing the vehicle the actual cash value of the vehicle would be determined. You would then be paid that value (Not to exceed the stated amount) minus your deductible.

Barbee Jackson Insurance – Your Florida Tow Truck Insurance Experts

Barbee Jackson Insurance is a leading provider of Florida Tow Truck Insurance and we work with the largest Commercial Auto insurance carriers to provide our clients the best coverage options for the best price. Our professional staff is always here to help…even if you insure with our competitors. Call today if you need any help understanding coverage options or if you are looking for a competitive quote, Call Us Today 850-389-2001.

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