Top reasons to offer Automotive Towing Program

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Producers, grow your book with our Towing Program

Commercial lines producers, if you have clients who specialize in automotive towing, you should check out our Towing Program. Why? Because it offers enhancements covering a wider range of operations.

This program is designed to complement Automotive Aftermarket operations such as mechanical repair, collision repair and automotive recyclers.

“We insure those risks that tow for hire and work closely with traffic incident management, state and local police and various motor clubs across the country,” explained Phil Stutheit, towing program manager. “However, this program does not have an appetite for repossession services, whether voluntary or involuntary.”

Size of fleet as well as the size of truck does not matter, Stutheit explained. “We currently have fleets ranging from 1 – 100 trucks ranging in price of $40,000-$850,000.”

What additional risks are covered under the towing program? Mechanical repair, collision repair, automotive recyclers and the incidental sale of used autos.

Related: New Automotive Aftermarket value-added services for producers and their clients

We chatted recently with Stutheit to learn the parameters of the Towing Program, asking him such question as:


Why choose Arrowhead’s program over other towing programs?

“Since Commercial Auto is such a hard market, carriers are leaving this segment at a quick pace, leaving more potential insureds searching for coverage,” he explained. “Zurich, on the other hand, has been in this space for 20+ years. That speaks volumes to the commitment they have for their insureds.  Their complete package offering Commercial Auto, General Liability, Property, Crime and Inland Marine and Cargo coverage gives Zurich a leg up in the marketplace.”

Stutheit listed other enhancements that set the Zurich/Arrowhead Towing Program ahead of its competition:

  • Our Coverage Extension endorsement provides additional coverages such as debris removal, interruption of computer operations, newly acquired or constructed property, demolition costs and more.
  • Commercial Auto. Claims are paid out at Actual Cash Value unless our customer prefers to use a stated amount. Garagekeepers insurance can be quoted on a direct primary basis or legal liability basis.  There are no sub limits for on-hook coverage.  “It’s nice to know that once you have the proper limits for garagekeepers coverage, you need not worry about any “on-hook” limit.”
  • Inland Marine. The most common coverage under Inland Marine in the towing market is Cargo coverage. This is on a separate cargo form.  This form takes care of many contract situations and is much more comprehensive than an ancillary coverage which might be covered under the garagekeepers form.  Mobile Equipment can also be scheduled under this form for those times when equipment is used in recovery situations.


What are your target markets and operations?

  • Established operations with industry experience primarily engaged in towing automobiles. This can include auto club contractors, auto body shops, auto mechanical repair shops, roadside service providers and rotational towing operations.
  • Operations that hire experienced drivers 25-years-of-age or older with clear driving records and provide ongoing training.
  • Trained drivers (WreckMaster certification or state association training preferred).
  • Operations that travel less than 300 miles that perform contract & customer towing daily.


What coverages are offered in the Towing Program?

“Our program covers one of the widest range of risks in the industry,” Stutheit said.


  • Building at Replacement Cost
  • Contents (Stock and Equipment)
  • Equipment Breakdown
  • Business Interruption and Extra Expense
  • Broad Coverage Extension endorsement – Automobile Liability


  • Money and Securities
  • Employee Dishonesty
  • Forgery and Alteration

General Liability

  • Products & Completed Operations
  • Personal & Advertising Injury
  • Damage to Rented Premises
  • Employee Benefits Liability
  • Medical Expenses

 Commercial Auto – Auto Liability and Physical Damage

  • Commercial Tow Trucks
  • Other Fleet/Business Vehicles
  • Garagekeepers Coverage
  • Pollution Liability

Inland Marine

  • Mobile Equipment Floater
  • Motor Truck Cargo Legal Liability


 What should producers be looking for in a carrier?

 Three things, Stutheit said:

Industry longevity. “Carriers come and go in this hard market.  Zurich has been there through thick and thin with a strong commitment to this industry.  It is not uncommon for an insured to come back to Zurich within 2 weeks of making a decision they wished they hadn’t have made.  While many things change in this fast-paced industry, Zurich has been a mainstay in the marketplace.”

Industry knowledge. For 20+ years Zurich has continued to grow on its knowledge of the automotive aftermarket.  Dating back to the 1920s with Universal Underwriters Group, Zurich has been a leader in the dealer and automotive aftermarket segment.

Loss prevention services and tools. “From design of safety programs to in-depth driver training programs specific to the automotive industry, Zurich places at your fingertips the tools to enhance your tow driver training including 1moresecond®.  This is a web-based training tool designed as a simulator and not a multiple-choice question course.  Best of all, these services are free.

Related: Top reasons to add Auto Aftermarket Express Package to your producer portfolio


 What risk management tips do you offer to producers and their tow clients?

“Take advantage of other articles and training courses available through your state association and other nationally recognized programs such as WreckMaster,” Stutheit said.

 “Routine inspections of equipment are key to insuring a risk-adverse atmosphere in your business.  Drivers should know the capabilities of the equipment they operate and keep an eye on those mechanical parts showing wear. Records are meticulously kept by FMCSA, and you run the risk of placing a truck out of service with poor maintenance. If you need a fleet maintenance program, Zurich can design one specifically for you,” he added.