Towing: The Good, The Bad, and The Ugly
September 24, 2015
Author: Kevin Nekvinda, Sales Executive
In the trucking industry everyone seems to have a bad towing experience to share. Besides the actual cost of the towing service, off loading charges, storage charges, excess labor, and all sorts of other fees can be added to the bill. Often times, when you get the bill nothing has been itemized so the insurance companies are resistant to paying anything. While the insurance company haggles with the towing company, storage charges are racking up and the cargo is still held hostage. Much of this can be avoided if you take some time to understand the Physical Damage and Cargo policy in regards to towing and off loading.
It really does matter who you buy your Physical Damage policy through. There is a vast difference in towing coverage on Physical Damage policies. Some insurers will pay only up to $5000 for the entire bill while others will cover all reasonable expenses involved with towing to the nearest repair facility. There are insurance companies that will break down the towing coverage into thirds: the tractor, the trailer, and the off loaded cargo. When this happens the adjustor needs to make sure that the Physical Damage and the Cargo insurers pay at the same time otherwise the equipment is held hostage while storage continues to accrue.
If you have a company that utilizes contractors then you may want to create an Owner Operator Physical Damage program that has a good towing coverage included. Otherwise their policy may only cover the tractor and not the trailer which usually belongs to the trucking company. Often times the trucking company is forced to pay out of their own pocket the difference between what the insurer pays and the amount demanded by the towing company in order to release their equipment and cargo.
One question that is often asked by trucking companies is if there is towing coverage provided in their insurance coverage when there is a breakdown. The short answer to this is no, for a very valid reason. There must be a covered cause of loss in order for the insurance to step in and provide any relief.
All Physical Damage policies are not created equal when it comes to towing coverage. It’s worth taking a few minutes to review just what amounts the insurer will pay when it comes to towing. All it takes is one large claim before it costs you much more in the end than the few thousand that you might have saved at the onset of the policy.
|Kevin Nekvinda’s role as Sales Executive means his top priority is ensuring his clients have the best consultative, safety, and claim services available to meet their insurance and risk management needs. Kevin graduated from Cornell College with degrees in Business Administration, Economics, Secondary Education, and Physical Education. He was a teacher prior to joining Cottingham & Butler. Away from the office, Kevin enjoys golf, softball, and coaching wrestling and football.|