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Progressive, Tow Truck insurance missing Garage Liability
by Larry LubellTow Trucks in Illinois are required to carry Commercial Auto Liability, Car on Hook Coverage as well as Garage Liability. Resently several Tow Truck owners have contacted Urban, looking to replace policies they had through Progressive after discovering that Progressive sold them policies without the required Garage Liability coverage.
It is our understanding that Progressive does not even offer Garage Liability coverage, despite the fact that it is required to legally obtain “Tow Truck Plates” in Illinois. It appears that some certificates were worded in a way that let them slip past the Secretary of State’s office. It also seems clear that the Secretary of State in Illinois, has caught their mistake, It is this reason that so many Tow Truck owners are switching their policies away from Progressive Insurance.
The Basic Coverages required for obtaining a Tow Truck Plate in Illinois are:
Comerercial Auto Liability : Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person. The Limits in the State of Illinois are set at $500,000.00 Combined Single Limit, or $750,000.00 Combined Single Limit for ICC Filing.
Garage Liability: Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person as a result of services performed as part of a towing operation or related service call.
Car On Hook Coverage: Insurance for what the policyholder is legally obligated to pay as a result of property damage to the vehicle being towed, either on a flat-bed on on a hook.
Garage Keepers Legal Liability: Is only required for those business that store customers cars. Worker’s Comp coverage is also a needed coverage, but only if the company has employees.
Progressive is a large carrier, with a good reputation; so I am surprised to find such a clear flaw in their Towing Policies, but we have had numerous customers who have recently found themselves with a policy that does not meet the State law. Also such a “Hole” in their coverage could leave a tow truck owner vulnerable to a major law suit stemming from damages for which they would have no coverage.
Urban Insurance has been selling Tow Truck policies for over 30 years. We know what you need, and will find you the lowest rates on Tow Truck Coverage.
Additional information on the Illinois Commercial Safety Towing Law (”Law”), 625 ILCS 5/18d
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