Loss Control Tips to Protect Tow Truck Insurance Companies from Costly Claims

Tow truck companies face unique risks—from navigating road hazards to handling damaged vehicles—that require tailored strategies to manage liability and reduce insurance claims. Why does this matter? Expensive claims can lead to increased premiums or even jeopardize your coverage. You can protect your business, employees, and insurance providers by implementing proactive loss control measures.

Read on to uncover practical risk management tips from Jason McConkey, director of transportation underwriting at Central Insurance, to enhance safety and give you an advantage in the industry.

Learn More: Tow Truck Insurance: The Six Policies You Need for Your Business

Tow Truck Insurance Companies Value Your Commitment to Safety Policies

When driving a tow truck, safety should always come first, so it’s no surprise the foundation of any loss control program is a clear and enforceable safety policy. McConkey emphasizes the importance of enforcing established guidelines: “If you state you’ll dismiss drivers after two accidents but fail to follow through, it can lead to greater risks and complications in claims management.”

Encourage employees to prioritize safety, from wearing proper gear to adhering to operational protocols like these roadside assistance tips:

1. Use Flares, Cones, and Reflectors

Ensure your roadside work area is highly visible by setting up flares, cones, or reflectors. Early visibility alerts passing motorists, giving them time to slow down or move over, reducing the risk of accidents.

2. Choose the Safest Exit

When pulling over, assess the safest point to exit the vehicle. Narrow shoulders can make driver-side exits risky, so evaluate both sides carefully before stepping out to avoid unnecessary danger.

3. Establish a Safe Work Zone

Lay down reflective cones and illuminated markers, creating a wide perimeter starting behind your vehicle and extending past the client’s vehicle. Use flares for additional visibility, especially at night or during rain.

4. Ensure Proper Lighting

Set up bright, focused light sources to illuminate your work area clearly. Proper lighting enhances safety and helps you complete the job efficiently and accurately.

Finally, talk with your insurance provider about how to conduct regular reviews and updates to safety policies to ensure they remain effective and relevant to evolving industry standards.

Invest in Telematics and Cameras to Defend Against Claims

Equipping tow trucks with telematics and cameras is one of the most effective ways to defend against claims. Dashcams and inward-facing cameras provide valuable evidence in accidents, proving fault—or lack thereof—in contested incidents. “Claims can often come down to a ‘he said, she said’ scenario, but with video evidence, we can more effectively defend our insured clients,” McConkey explains.

Telematics systems also allow for real-time monitoring of driver behavior, including speeding, harsh braking, and distracted driving. By identifying and addressing risky behaviors, your towing business can proactively participate in reducing accident rates for your tow truck insurance company and improving overall safety for everyone on the road.

McConkey highlights that fleet management tools like Towbook offer comprehensive solutions for tracking vehicles, planning routes, and monitoring operations. These systems provide valuable data for identifying areas of improvement, such as driver performance or equipment maintenance.

Learn more: Fleet Management Solutions: How to Minimize Loss and Maximize
Profits

Comprehensive Driver Training as a Loss Control Measure

With an estimated 35,000 towing companies operating more than 210,000 commercial motor vehicles, the industry has a lot of risk exposure. Because employee drivers are the backbone of any tow truck operation, their training directly impacts safety outcomes. “Once on the road, drivers are largely self-regulating,” McConkey notes.

He recommends comprehensive training that covers the following:

Proper loading and securing of vehicles, especially those damaged in accidents

Defensive driving techniques to navigate traffic safely

Awareness of blind spots and the unique challenges of towing large vehicles

Route planning is an often under-utilized yet critical component of driver safety. Careful planning minimizes exposure to high-risk zones, such as congested residential areas or poorly maintained roads, reducing the likelihood of accidents and costly claims for your tow truck insurance company.

Regular Vehicle Maintenance is the Key to Success

Preventative maintenance is essential to keeping tow trucks in top condition and avoiding breakdowns or accidents caused by mechanical failure.

McConkey suggests that a thorough maintenance schedule includes:

Regular inspections of brakes, tires, and hydraulics

Immediate attention to issues like worn tires or malfunctioning lights

Pre- and post-trip checks to identify potential problems before they escalate

Properly maintained equipment is essential for reducing costly claims because it minimizes the likelihood of mechanical failures that can lead to accidents, property damage, or service delays. For instance, issues like brake malfunctions, tire blowouts, or hydraulic failures are preventable with regular maintenance, ensuring your vehicles operate safely and reliably.

Strengthen Relationship With Your Tow Truck Insurance Company With a Safety-First Culture

The insurance claims you file directly affect your rates, so building a safety-first culture must start with you. Management should emphasize safety through consistent messaging and incentivize employees to adopt safe behaviors. “Reward drivers for going long periods without incidents. It encourages safe behavior and builds a positive work environment,” McConkey suggests.

To succeed in the towing business, you must prove you’re reliable. The same applies to the relationship with your insurance carrier. Your tow truck insurance provider values a strong culture of safety that ensures every employee understands their responsibility in loss control and promotes accountability throughout the organization.

Additionally, building a long-term relationship with your insurance provider can be invaluable. “Frequently switching insurers may result in short-term savings but can hurt your reputation as a safe company,” he states. Enhancing this partnership demonstrates a commitment to safety, which can lead to more favorable coverage terms and better support in managing claims.

Choose Central as Your Tow Truck Insurance Company

Tow truck companies navigate a high-risk industry where even small mistakes can result in expensive claims. Implementing effective loss control strategies—such as enforcing safety policies, utilizing advanced technology, prioritizing driver training, and fostering strong relationships with insurers—helps safeguard operations and reduce financial risks. Partnering with Central offers comprehensive coverage, expert loss control assistance, and safety services to support your success.

Take a proactive step toward reducing claims and ensuring long-term stability—contact a Central agent today to get started.

The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.

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Loss Control Tips to Protect Tow Truck Insurance Companies from Costly Claims