A lot of unforeseen incidents can happen while out on the road. If you are in the business of towing or hauling vehicles for others, then you should look into ways of guaranteeing their safe passage while they are in your possession. Consider the acquisition of on-hook insurance for the fleet. This will protect your company’s finances in the event of an accident. It is meant to cover the repairs for any damage sustained by the client’s vehicle while in transit. Note that it is for your customer’s properties and not your own, which are presumably already covered by other forms of insurance.

Types of Damage

Vehicular damage can happen despite multiple safety measures. After all, we cannot control everything once we go out into the world. The cars being transported may be harmed by a collision with another vehicle. Dents and scratches may result from these collisions to varying degrees. The company is responsible for fixing these problems since they were obtained while they were in-charge. Theft is another common issue. Valuable parts may be removed if security precautions are inadequate. Vandalism may become a problem if passing through rough neighborhoods. In rare cases, fire and explosion may ensue. These are all covered by most on-hook towing insurance policies.

Limits and Deductibles

As with most policies, it is necessary to specify a limit and a deductible. Be careful when choosing the amounts for these as they have major consequences. The limit will be the highest possible amount that the insurance provider will pay per occurrence in case the vehicular cargo gets damaged. This should be high enough to cover most issues. The problem is that lofty limits come with expensive monthly payments. Find a good balance that works for the business. Meanwhile, the deductible is amount that you must pay from your own funds before the insurer helps with the balance.


If it often necessary for trucking companies to get liability insurance before they are allowed to acquire on-hook insurance. Present proof of this to your service provider for faster processing. All of the vehicles on the fleet that are being applied for coverage under the same policy must have equal limits. Remember that this is only applicable for businesses that are engaged in towing and trucking for hire. It covers the vehicles that are being hauled for clients. It is not applicable when transporting cars owned by your company. It cannot be counted upon when towing a vehicle with a mobile home or any other personal use.

An On Hook Insurance Example

A concrete example will be helpful at this point. Let’s say that a number of racing cars need to be transported from a pick-up point to the race track. Your company is called up to perform the task. This should be a straightforward affair. Your truck drives to the client’s location to pick up the cars, loading each one carefully onto the platform. These are then driven along the highway to get to the track on time. Unfortunately, a slick road makes it difficult to drive and the truck hits the side of the road. No one is hurt but the cargo has sustained some damage.

The insurance policy now gets activated. If you selected a $600 deductible, then you pay this amount towards the repairs first and the insurer takes care of the rest up to the designated limit. For instance, you might have chosen a limit of $20,000. If the scratches, dents, and other damages sustained fall below this amount, then you will not have to worry about paying anything more. However, if the issues require an outright replacement which costs more than this, then you will have to shoulder the rest of the bills.