Whether you’re launching a new operation or already run a Florida-based Tow Truck company, insurance is essential.
The specific coverage you require hinges on various factors, such as the scale of your business, the operational region, and the equipment you utilize.
In compliance with Florida law, you must maintain a minimum level of insurance based on these criteria.
Here are the minimum insurance requirements for different aspects of your operation:
Commercial Auto Liability Limits:
- Tow Trucks with a Gross Vehicle Weight under 35,000 pounds: $50,000 Combined Single Limit per occurrence.
- Tow Trucks with a Gross Vehicle Weight between 35,000 and 39,999 pounds: $100,000 Combined Single Limit per occurrence.
- Tow Trucks with a Gross Vehicle Weight of 40,000 pounds or more: $300,000 Combined Single Limit per occurrence.
In Tow (On Hook) Coverage Limit Requirements:
- Tow trucks must carry a minimum of $50,000 in coverage for vehicles in tow or on hook.
Storage (Tow Yard) Coverage Limit Requirements:
- Tow truck operators involved in vehicle storage or movement when not in tow must have:
- A minimum Garage Liability Limit of $300,000 Combined Single Limit per occurrence.
- A minimum Garage Keepers Legal Liability Limit of $50,000 for each loss, covering perils such as fire, explosion, theft, riot, vandalism, and malicious mischief.
Commercial Auto Personal Injury Protection Requirements:
- Florida mandates a 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 per occurrence.
Ensuring you maintain the correct amount of insurance is crucial to meet Florida State requirements. This not only prevents interruptions in your towing business but also shields you from additional fees and fines due to non-compliance.
However, merely meeting state requirements may not suffice to protect your business adequately. It’s essential to assess your own risk level.
For instance, if you frequently tow vehicles valued over $50,000, you should consider purchasing more In Tow/On Hook coverage than the state-mandated $50,000.
Similarly, relying solely on a $50,000 Garagekeepers Legal Liability limit may prove inadequate if you regularly handle vehicles worth significantly more.
Discussing your business’s characteristics with your agent allows for tailored suggestions on coverage limits and additional coverage options.
Coverage Options:
Uninsured/Underinsured Motorist Coverage:
This additional coverage on your commercial auto policy provides bodily injury coverage for yourself or passengers in accidents where the other motorist is at fault but lacks adequate or any liability insurance.
It serves as a backup if the at-fault party cannot cover your medical bills.
Note that in Florida, your personal injury protection pays out first before uninsured motorist coverage can be used due to the state’s No-Fault laws.
Medical Payments:
This optional coverage adds extra medical injury coverage for you and/or your passengers in accidents while driving your vehicle.
In Florida, it acts as secondary coverage to personal injury protection.
Customer’s Contents Coverage:
This coverage reimburses your customers for personal items left in their vehicle if it’s burglarized while in your custody.
Physical Damage Coverage:
This coverage reimburses you for damage to your vehicle/equipment. It typically includes comprehensive and collision coverage with a stated deductible.
If your vehicle sustains covered damage, you’d receive the actual cash value minus your deductible, up to the stated amount.
It’s crucial to note the maximum payout limit for physical damage on any single vehicle, often referred to as the “Stated Amount.”
For example, if your tow truck has a stated amount of $40,000, the insurance would pay out accordingly for covered losses.
How Much Does Commercial Truck Insurance Typically Cost?
The cost of commercial truck insurance can vary significantly based on numerous factors.
Insurers take into account elements such as the type of truck, cargo type, distance traveled, driving records of operators, and desired coverage limits.
While providing an exact figure is challenging due to these variables, we can explore the general factors influencing the cost of commercial truck insurance.
- Type of Truck: The type of truck being insured is crucial. Larger, heavier trucks often incur higher insurance costs due to the increased potential for severe accidents and property damage.
- Cargo Type: The nature of transported cargo is another significant consideration. Hauling hazardous materials or high-value goods may lead to higher insurance premiums due to increased risk and potential for substantial losses.
- Distance Traveled: The regular distance the truck covers, whether for local deliveries or long-haul transportation, impacts insurance costs. Longer travel distances often correlate with higher premiums.
- Driving Records: The operators’ driving records, including accident history and violations, play a crucial role in determining insurance costs. Safer driving records typically result in lower premiums.
- Coverage Limits: The extent of coverage selected by the insured also influences costs. Higher coverage limits and additional coverage options generally result in higher premiums but provide greater protection.
- Deductibles: The chosen deductible—the amount the insured pays out of pocket before insurance coverage kicks in—affects premiums. Higher deductibles often lead to lower premiums, but businesses should assess their financial capacity to cover potential deductibles.
- Insurance Provider: Different insurance providers may offer varying rates for similar coverage. Shopping around and obtaining quotes from multiple providers can help businesses find the most cost-effective and comprehensive insurance package.
Also read: Commercial Truck Insurance In Louisiana
In conclusion,
commercial truck insurance is a critical component of operating in the trucking industry.
From legal compliance and financial protection to risk mitigation, having the right coverage is essential.
Understanding the components of commercial truck insurance, the risks it covers, and the factors influencing its cost empowers businesses to make informed decisions.
By tailoring their insurance coverage to their specific needs, businesses ensure compliance with regulations and establish a robust safety net for the challenges of the road ahead.