Workers' Comp Coverage for Towing Businesses

Workers compensation for your towing business can be hard to find and pretty expensive to purchase. Depending on your hours of operation and state, it may be impossible to get coverage outside your State Insurance Fund. However, we’re working hard to create better insurance programs for towing companies in most states across the U.S.

We’ve been helping tow truck owners find easy and affordable coverage for over 15 years. Our experts understand the insurance requirements from the insurance companies and we know how to negotiate the lowest rates on coverage. That’s why we’ve developed towing programs designed to help you get the best rates and most flexible payment options.

Pay as you go

Improve cashflow and reduce the potential for big audit bills.

Comparison Pricing

Get quotes from multiple insurance companies to ensure the lowest rates.

Claims Management

Our carriers have experienced claim managers to close claims quickly.

Workers' Compensation Codes Related to Towing

Employees are grouped into classification codes based on their job duties and work functions. The National Council on Compensation Insurance (NCCI) currently utilizes nearly 800 class codes to help insurance companies and agents categorize employees for rating purposes. Insurance companies set a base manual rate for each class code in order to begin pricing a policy.

Properly classifying workers is an important part of the quote process. Mis-classified employees can cost small businesses thousands of dollars. You could end up paying too much for coverage or owing more money after an annual audit

Towing Insurance Workers' Comp.

Class Code 7225
Towing Company

Tow truck companies are primarily engaged in towing light or heavy motor vehicles. The towing distance may include local and long distance towing. It's common for these companies to provide other related services including vehicle storage and emergency roadside assistance. Tow trucks include rollbacks, flatbeds, wheel lifts and hook and chain vehicles.

Repossession services are typically included under class code 7225. However, these companies may be subject to more underwriting review due to the additional risks associated with repo insurance. Underwriters evaluate and price tow truck companies on many factors besides the class codes. Towing companies who travel smaller areas, don't provide 24-hour services, and don't do repossession typically get lower rates and more quote options.

Alternative State Class Codes for Tow Trucks:

Sometimes a state will deviate from the industry class code recommended by NCCI. Instead of the NCCI code, they may require the utilization of a state specific class code for certain business segments.

Related: hotel, motel, inn, motor court, cabin rental, rooming house, boarding house, fraternity house, sorority house, workers dormitories.


licensed throughout the United States

How Does Workers' Comp Work?

Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.

Injuries and accidents happen. A workers’ comp policy is a no-fault system that pays for these accidents and claims. It’s required by law in most states.

Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.

In some instances, workers’ compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.

How Much Does Tow Truck Insurance Cost?

The average rate our customers pay for workers’ compensation under the 7225 class code is around $7.00 per $100 of payroll. The average cost for a liability insurance policy is about $8,500.00.

  • Work Comp is priced based on payroll
  • Your state and EMR Rating will affect your cost
  • The type of towing work can modify rates
  • Premium discounts and policy credits may apply
  • GL rates for towing are based on sales (rated per $1000)
  • Gross revenue may affect pricing
  • The type of towing matters to underwriters
  • Prior clams and years in business affect pricing
  • SIC code 7549- Motor Vehicle Towing

How do I get started?

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What Happens Next?

We go find for your best price

We've developed affordable insurance programs for Towing.