If you have dreams of owning your own tow truck company, you may think the only things you have to do is buy a truck and fulfill the requirements that are needed to own a company. However, there is so much more to creating a successful tow truck business plan or strategy than buying a truck and fulfilling a list of requirements.
Before you make the decision to purchase a tow truck, we want you to think of all the aspects that will come with owning a business. Here are a few things you will need to know before you actually open a tow truck business.
What Is Your Business Plan?
Before you attempt to own any type of business, it is important to have a clear understanding of the type of operation you want to run. Do you have plans to work independently or do you want to hire people to work with you? Also, you will need to have a clear understanding of who will be a part of your target audience.
Do you want to provide roadside assistance to drivers? Do you want to partner with the local government to tow vehicles that have been parked illegally? Whatever route you plan to take, it is important to have a clear understanding of your future plan.
Do You Need More Than One License?
Yes, if you want to operate your tow truck legally, you will need more than one license. Your business will take on the responsibility of hauling multiple loads, you will need to have a commercial driver’s license. The requirements you will need to follow to obtain a commercial driver’s license will differ based on the regulations set by your local government.
In addition to a commercial driver’s license, you will also need a business license. You may also discover that you will need to obtain other licenses, permits, certifications, in order to become a tow truck company owner.
What Type Of Insurance Will I Need?
While you may want to settle for the basic coverage when it comes to insurance, you will need more coverage than what the basic package can offer. Since your business is based on moving someone else’s vehicle, you do not want to find yourself responsible for paying for repairs, damages, etc.
There are various types of insurance that can be obtained for your tow truck, and some of the factors that will determine the type of insurance you need include the type of truck you are operating. If you plan to use a building to store vehicles that have been towed by your company, you will need to ensure that the facility is properly insured.
Some of the most common types of tow truck insurance coverage include the following:
- liability insurance
- physical damage coverage
- medical payment insurance
- on-hook towing insurance
- garage keepers legal liability insurance
To explore what options you may want to include in your tow truck insurance coverage, contact us today. We are licensed in Florida, Georgia, Texas, North Carolina, South Carolina, Iowa, Nebraska, Illinois & Tennessee.