Towing & Recovery Insurance Principles: What Is General Liability?
General liability for towing and recovery professionals is a catch-all that covers a broad array of liability-based claims. The exceptions are when damage is deemed intentional, or when contractual breach is involved. The latter is covered by professional liability insurance, also known as errors and omissions insurance.
There are two types of general liability policies – occurrence and claims-made. Occurrence policies are the traditional form of insurance, which cover claims that happen at any time as long as you were insured at the time of the initial incident. Claims-made policies only cover claims made during the same policy period as the initial incident. This means that the window of opportunity to file a claim is smaller, and requires the insured to be more proactive. The benefit to claims-made policies is that they are much less expensive due to the reduced duration of the liability shield.
To learn more about general liability policies and how they can impact your towing or recovery business, contact us.