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On Hook or Cargo / Flatbed or Tow Truck


Guest PATOWGIRL2
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Guest PATOWGIRL2

I have been working as an administrator for a towing company since 2010. Just recently, when renewing our insurance policy, I was made aware of the different coverages of "on hook" or "cargo" insurance. Up until 2 years ago we have always had the on hook coverage as AAA requires that coverage if you are contracted with them. Our other non-motor club accounts started requiring us to have cargo insurance. In addition, we consider our 2 car carriers to be "flatbed" trucks, not "tow" trucks. Now I am being told that if we have flatbed trucks, we need the cargo insurance. But a flatbed can also be considered a tow truck, therefore we would need the on hook coverage.   AAAARRRRGGG.......................are you now just as confused as I am? 

 

I look at it this way, AAA requires "on hook" for roadside assistance. However, if ever we are towing a members car, our driver puts the vehicle on the bed. We rarely, if ever, double hook. So, at that point shouldn't we have "cargo" coverage? There are more non towable vehicles on the road today as opposed to vehicle's that can be towed. If we are taking cars to the auctions, we will, of course, try to pair a towable with a non towable. So then would the cargo coverage cover the tow vehicle if there would be an incident involving that vehicle? How would you classify a 2 car carrier? As a flatbed or a tow truck? What can anyone tell me about the two types of coverage? 

 

Thank you for taking the time to read this through and I hope to be able to expand my knowledge on this topic with your help.

 

PATowGirl

Pennsylvania 

Our fleet is small, consisting of a 2016 Freightliner flatbed, 2014 & 2016 Dodge Ram 5500 (4)

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Depending on insurance company.On hook is specific to towing vehicles ,motocycles,trailers,etc.For damage caused by tow vehicle.Cargo ins covers materials,machinery,etc.We have had to carry an insurance add on for cargo we moving things other than vehicles.Find out specific reason they want you to carry cargo ins.Sometimes they are uneducated to our industry and what our type coverage covers.

Kevin's American Towing Service
Ph: 631-654-8811

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On-hook, On-hook Cargo, Motor Truck Cargo and Garagekeepers are all different ways of providing coverage for the vehicle being towed or transported and it's contents(the freight in a truck) or cargo on your flatbed or trailer such as construction equipment. You need to read the particular form from each carrier to see how they would respond. With some carreirs you use garagekeepers and a motor truck cargo policy to cover the vehicles and cargo, the next it may be On-hook Cargo since that is how that program is designed and the next the On hook only covers the vehicle and carrier has a seperate cargo option which I don't use because it provides poor coverage, so I use a Motor Truck Cargo policy from another carrier for a better combined product. Garagekeepers provides coverage for "auto & auto equipment", and does not provide coverage for the cargo even though I have had may an agent tell their client that it does. They have never read the form. I have seen On hook forms that have overload exclusions- winch a 4,000 lb car onto a flatbed with a 3/8 cable with a 3500 lb safe working load and have the cable break and the car rolls back into a building, the carrier could deny the claim. Ask your agent to read the form with you and explain how it will respond to different types of claims. This is just a quick overview of some of the different cover forms, there is a lot more to this. You can't make a blanket statement on how on-hook works.

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Also many states insurance rules are different something covered in one state may not be covered in another.

 

 

Kevin's American Towing Service
Ph: 631-654-8811

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