Courier, delivery and towing companies usually need commercial auto liability and physical damage, cargo or on hook coverage, garagekeepers for vehicles in storage, general liability, workers’ compensation and often an umbrella. Clients, motor clubs and the CHP rotation program set many of the limits. SF Coverage checks those agreements for free, checks certificate requests before they go to your broker and gives a free renewal second opinion within three business days.
Who sets your insurance requirements
- Delivery clients and platforms
- Auto liability limits, cargo coverage, certificates naming the client and workers’ compensation evidence.
- Motor clubs
- Auto liability, on hook and garagekeepers limits for roadside and tow programs.
- CHP rotation and local agencies
- Insurance minimums set in the Tow Service Agreement and certificates naming the agency.
- Healthcare and lab clients
- Higher liability limits and handling terms for specimens and records.
Coverage courier, delivery and towing companies usually carry
Exposures to get right
Roadside injuries
Operators work beside live traffic, which drives serious injury and liability claims.
Damage to towed vehicles
Auto liability does not cover the vehicle on the hook or in the yard.
Driver classification
Using independent drivers raises workers’ comp and liability questions under California law.
In California
- California applies the ABC test under AB 5, codified in Labor Code section 2775, to decide whether a driver is an employee, which affects workers’ compensation for courier and delivery fleets.
- Tow operators on the CHP rotation tow program sign a Tow Service Agreement that sets insurance minimums.
- California requires workers’ compensation for every employer.
How SF Coverage works for courier, delivery and towing companies
Have these ready
- Vehicle schedule with values and garaging addresses
- Driver list with license numbers
- Client, motor club or rotation agreements
- Storage yard address and typical vehicle count
- Current declarations pages and endorsements
- Loss runs for the last five years
Insurance for courier, delivery and towing companies, answered
What is on hook coverage?
On hook coverage pays for damage to a customer’s vehicle while it is being towed or transported. Auto liability does not cover the vehicle you are towing, so motor clubs and rotation programs usually require on hook at a stated limit. SF Coverage checks your limit against each agreement.
What is garagekeepers coverage?
Garagekeepers covers customer vehicles in your care at your yard or lot, such as damage from fire, theft or vandalism. It is separate from on hook coverage, and many tow operators need both. The free contract check confirms what each client or program requires.
What do delivery clients ask couriers for?
Most ask for auto liability limits, cargo coverage, workers’ compensation evidence and a certificate naming the client. Some add an umbrella or hired and non-owned auto when drivers use their own vehicles. SF Coverage reads the agreement against your policies and lists gaps.
Why is my towing renewal so expensive?
Commercial auto has been difficult for insurers nationally, and roadside claims, repair costs and driver records move pricing. Send the renewal and expiring policy and SF Coverage explains each change in rate, trucks, operators, on hook limits and deductibles within three business days. SF Coverage starts towing renewals 90 days out.
How does SF Coverage review towing coverage?
It reads auto, on hook and garagekeepers policies against each motor club or rotation agreement and compares every limit with your declarations. Gaps are named with the exact change to request, and renewals start 90 days out.
General information. Coverage depends on the policy an insurer issues.