When it comes to towing, entrepreneurs need to be aware of their liability responsibilities. Sometimes damage occurs to vehicles when they’re being towed, and it’s important to know if you are liable for that damage. This article will discuss the liability of tow companies, the importance of insurance and damage waiver forms, and tips for preventing damages during a tow.
What Damages Are Tow Companies Liable For?
Tow companies are liable for any damages that occur during the towing process. This includes damage to the vehicle being towed, as well as any property damage that occurs. That means if you damage your customer’s car while towing it, or if you damage something while towing the car, the tow company will be held liable.
The Importance Of Liability Insurance
It’s important for tow companies to have liability insurance to protect themselves from damages that may occur. This insurance will cover the cost of damages that are caused by the tow company. Without it, the tow company would have to pay for damages out of their own pocket. This insurance typically costs around $500 per year but could potentially save you thousands of dollars in damages.
The Importance Of A Damage Waiver
A damage waiver is a form that is signed by the customer before a tow. This form releases the tow company from liability for any damages that may occur during the tow. It’s important to have a damage waiver form because it protects the tow company from being held liable for damages. Otherwise, the tow company could be sued for damages.
It’s important to remember that you won’t be protected if damage is the result of an employee’s negligence.
Tips For Preventing Damages During A Tow
Damage may occur at some point during the towing process. However, there are some tips that can help prevent damage from happening.
Inspect the vehicle beforehand: Before hooking up the vehicle to tow, it’s important to inspect it for any damage. This will help you avoid causing any additional damage to the vehicle.
Make sure the emergency brake is off: It’s important to make sure the emergency brake is off before towing the vehicle. If it’s not, it could cause damage to the brakes.
Use straps or chains: When hooking up the vehicle to tow, be sure to use straps or chains. This will help prevent the vehicle from sliding or shifting during the tow.
Use proper equipment: Make sure you are using the proper equipment for the job. Using the wrong equipment can lead to damage.
Drive slowly and carefully: When driving the vehicle to the destination, be sure to take it slow and drive carefully. This will help avoid any bumps or jolts that could cause damage.
Conclusion
Tow companies are liable for any damages that occur during the towing process. That includes damage to the vehicle being towed, as well as property damage. It’s important for tow companies to have liability insurance to protect themselves from these damages.