Tow Truck Insurance Baton Rouge La
As a leading Independent Insurance Agency we can help you find the best options for Tow Truck Insurance in Louisiana.
Call us today by dialing 337-824-4455.
We offer competitive insurance solutions for a variety of different towing operations, no matter if it’s incidental to your garage or dealership, or you specialize in any form of towing including repo work.
It Is Super Important to Disclose All Facts about Your Business Operation.
In last week’s discussion we considered how Lowball Trucking Insurance Company issued a claim denial to Atlas Trucking because of a material misrepresentation on the insurance application submitted to the insurance company.
An agent working for Lowball Trucking Insurance Company did not document the correct radius of operation on the application, and the Atlas Trucking Company did not notice the incorrect information listed on their application leading to a claim denial.
Within the insuring agreement of any commercial auto policy is a detailed list of terms and conditions and exclusions of coverage.
One of the conditions within the typical commercial auto policy purchased by towing operations, garages, and car dealerships is the ability for the insurance company to void a policy when incorrect information is provided to the insurance company.
Today we’re going to discuss the rationale on why some insurance companies place radius of operation restrictions on their policy, and we will discuss the importance of making sure all details are accurate.
Why Do Insurance Companies Place Restrictions on Radius of Operation?
Not all insurance companies have the same underwriting standards based on their particular risk appetite. Some insurers are okay with insuring companies that need an unlimited radius of operation; other companies restrict the radius of operation to only 200 miles; still other companies, 350 miles; some 500 miles.
Why do companies place such limitations within their underwriting guidelines?
It’s normally based on past experience. A company restricting their insured customers to 200 miles or less perhaps has had unfavorable loss experiences with trucking operations including towing service operations traveling further than 200 miles.
In some instances companies will make minor exceptions to their underwriting rules. However, if a particular insurance company limits the radius of operation to 200 miles or less and a tow company travels further than the maximum allowed, the insurance company will decline to insure that company.
What happens if a company travels further than the maximum allowed and incorrect information is listed on the application?
This will likely result in a claim denial or the policy will be voided as if it never existed.
It’s vitally important to ensure all information on the company application is 100% accurate.
Call Jeff Davis Insurance When You Need Tow Truck Insurance in Baton Rouge La.
Our tow truck specialists can shop the market to help you find the coverage you need based on your individual circumstances.
Call 337-824-4455 Monday through Friday 8:30 AM to 4:30 PM (CST).
Please look below to learn about other nearby areas we serve commercial truck insurance:
- Tow Truck Insurance Walker Louisiana
- Tow Truck Insurance South Baton Rouge
- Tow Truck Insurance Scotlandville Louisiana
- Tow Truck Insurance Zachary Louisiana