Liability Insurance for Towing and Repossession

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Towing & Repo Insurance


Liability Insurance for Towing and Repossession Companies

When a vehicle has been towed or repossessed, there is no way to know the kinds of damages that could occur during the transportation or holding period. As the owner of a towing/repo company, you could be responsible for paying these costs out of your own pocket. You could also face a lawsuit with the potential to bankrupt your business and drain your personal assets.

Carrying an adequate amount of liability insurance for towing and repossession companies is the best way to safeguard your business and protect your livelihood.

liability insurance for towing and repossession

What You Need To Know About Liability Insurance for Towing and Repossession Businesses

At XINSURANCE, our goal is to provide insurance solutions for those gaps to those who need it most where regular insurance companies do not. Whether you need insurance for wrongful repossession, risks in the transportation of goods, liability insurance for risks associated with garage keepers and watchdogs, or something else, XINSURANCE is the insurance partner you want for the coverage you need.

With XINSURANCE, you can purchase customized liability insurance coverage that will protect you in all the areas that your employers, homeowners, and business insurance policies can’t or won’t. Our underwriting team brings you over 40 years of experience, along with the ability to offer customized limits, coverage, deductibles, and premiums to create the perfect plan for your personal protection. You’ll get a comprehensive liability plan that gives you true peace of mind.

What Does Liability Insurance for Towing and Repossession Cover?

We’ll create a liability plan tailored to your company, addressing all the risks that leave you and your business vulnerable. Typical coverage selections include:

  • Commercial auto liability insurance (available in most states): Tow truck owners must carry auto liability coverage to protect against accident-related injuries and property damage. If a tow truck driver working for your company causes an accident that injures another driver, this insurance will help.
  • Commercial general liability insurance: This insurance type provides basic third-party coverage in the case of property damage or bodily injury. It applies to incidents that aren’t related to the vehicles used in your business. For instance, if a customer or visitor at your garage trips over a tool and sustains an injury, general liability insurance will keep you protected.
  • Drive-away liability insurance: This form of liability coverage offers protection if you cause injuries or property damage while towing a vehicle to another destination, such as a storage lot or auto auction.
  • Wrongful repossession liability insurance: This coverage will protect you if damages arise out of a negligent act, error, omission, or failure to render professional services. Examples include repossessing the wrong vehicle or failing to obtain a written order from the financing company before towing.
  • Garage keeper’s legal liability insurance: This insurance protects against damages while an automobile is under your “care, custody, and control.” For instance, if you temporarily store a repossessed vehicle on your property, you’ll have coverage if someone breaks in and vandalizes it.
  • On-hook liability insurance: Accidents can occur while you’re towing a vehicle. On-hook insurance will pay for any resulting damages, but only if a portion of the auto is on the ground.
  • Alleged assault and battery liability insurance: A vehicle repossession situation could become confrontational. Assault and battery coverage will protect you if an altercation occurs and an injured party decides to sue you.
  • Garage keepers direct primary: Unlike garage keeper’s liability, this coverage pays for losses whether or not you’re legally liable.
  • Package or mono-line: You can purchase one type of liability insurance or a package plan consisting of several coverages.
  • Individual liability: Also known as personal liability, this coverage protects the towing company owner’s personal assets.
  • Property coverage: This insurance protects the building and other property owned by the towing business.
  • Alleged sexual abuse and molestation liability: Use this coverage to protect yourself and your employees against allegations of sexual misconduct.

All-in-One Liability Insurance That Meets Your Needs

When you choose XINSURANCE, you’ll get a comprehensive liability insurance policy that covers all your risks under a single plan. Select the limits that provide coverage for your business — up to $10 million in coverage is available, and as much as $20 million through our reinsurance partners.

If you partner with us, you’ll also enjoy a fast, seamless customer journey. Our streamlined application process entails filling out and submitting our online app. Our underwriters will review the information and set up a convenient phone call to discuss your situation in more detail. We’ll then deliver a fast, free quote for your consideration, issuing your new policy promptly once you agree to the terms and pay the initial premium.

To start the quote process and obtain more information about our liability insurance for your towing or repossession business, complete the form above. If you have any questions and would like to speak to a representative, give us a call at 877-585-2853.

We Fight Claims!

We fight claims and lawsuits. We have decades of experience in investigating and documenting claims, with extraordinary claims knowledge of state, local, and federal legislation. We boast a nationwide network of adjusters, inspectors, and other legal professionals, as well as in-house legal experts that work with the insured and producers to establish a claim and go through the process. As an example, see our recent win in the towing industry!

Colorado – Alonozo V. Reliant Towing & Recovery

The plaintiff alleged that defendant’s employees breached the peace while they were attempting to repossess her vehicle. The plaintiff claimed that on December 10, 2019, Reliant’s employees knocked on her door to initiate repossession efforts, but she did not answer. Plaintiff claimed in retaliation for not answering when they knocked, Reliant’s employees tried to break into her home and garage, threw rocks, etc. Reliant denied that any of these things happened. Plaintiff filed suit seeking damages for defendant’s alleged violation of the Colorado Fair Debt Collection Practices Act, extreme and outrageous conduct, and invasion of privacy by intrusion. Plaintiff sought damages in excess of $100,000 for emotional distress, punitive damages and attorney’s fees. At the close of evidence during the two day jury trial, Reliant moved for a directed verdict on all of plaintiff’s claims, arguing there was no credible evidence that Reliant’s employees exhibited extreme or outrageous conduct and that there was no evidence of any kind of emotional distress suffered by plaintiff. The trial judge agreed and granted Reliant’s motion for directed verdict on all counts, entering a judgment in favor of the defendant and against the plaintiff, and dismissing the lawsuit, with prejudice. Alonzo v. The Marquesan Cross, LLC d/b/a Reliant Towing & Recovery; 2020 CV 30671

Declined? Canceled? That's Our Specialty

If you’ve been declined, non-renewed, or canceled after an audit, or feel your business is misunderstood by the insurance industry, XINSURANCE can help. We can take over existing claims, even underwriting and/or buying into current litigations. For more than three decades, XINSURANCE has worked with thousands of insureds across the United States and consistently received high customer service reviews. Let us show you how we can help your business.

With XINSURANCE, you can purchase customized liability insurance coverage that will protect you in all the areas that your homeowners, employers, and business insurance policies won’t or can’t. Our underwriting team brings you over 40 years of experience, along with the ability to offer customized limits, coverage, deductibles, and premiums to create the perfect plan for your personal protection.



We provide specialty customized insurance coverage through an all-in-one approach to fit your needs.

  • Commercial Auto Liability
  • Commercial General Liability
  • Drive Away
  • Garage Keepers Legal Liability
  • Garage Keepers Direct Primary
  • On-Hook Towing
  • Wrongful Repo
  • Package or Mono-Line
  • Individual Liability
  • Property Coverage
  • Alleged Assault & Battery
  • Alleged Sexual Abuse & Molestation


Approximately 2 million Americans take out an auto title loan each year. High interest rates of 300% or more are charged resulting in a high rate of repossession and long repayment periods.

One out of every five auto title loans results in the borrower’s car being repossessed.

Even the best of intentioned repo professionals can open themselves up to situations where they could be charged with violations, including property or bodily injury.

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