Hey guys, Jim here again. Running a tow truck business in New York and New Jersey, I learned early on that sometimes you just can’t do it all by yourself. You get busy, calls start coming in back-to-back, and the next thing you know you’re thinking about hiring a part-time driver to help keep things moving. But then the big question hits: if I bring someone on, are they actually covered under my insurance?
When I first asked my broker, I was surprised by the answer. The short version is: not always.
Here’s how it works. Most commercial auto policies will cover “permissive drivers” — that means if you give someone permission to use your truck, they’re insured. But that only really applies if it’s occasional use, like if a buddy helps you out one weekend. If you’ve got someone driving for you regularly, especially if you’re paying them, the insurance company wants that driver listed on your policy.
And here’s the tricky part: insurance companies care a lot about who’s behind the wheel. They’ll ask for driver information, including license numbers and driving history, and sometimes they’ll even deny a driver if the record is too rough. That’s why I always check with my broker before putting anyone new in the seat.
Another thing a lot of guys overlook is workers comp. If you’ve got employees — even part-time — the state might require you to carry workers compensation insurance. That way if one of your drivers gets hurt on the job, you’re not paying out of pocket. In New York and New Jersey, they don’t mess around with that.
So here’s what I do: anytime I’m thinking about hiring or even letting someone help out, I call my broker first. I’d rather deal with the paperwork now than deal with a denied claim later.
If you’re running your own tow truck company like me and you’re not sure if your drivers are covered, don’t leave it to chance. Give The Sarrica Insurance Group a call at 516-277-0812. Or, if it’s easier, just fill out this quick form: Get a Business Insurance Quote.
Trust me, it’s worth making sure you and your drivers are fully protected.