Dear JSA,
Lately we’re seeing more towing and auto hauling risks come through our agency, and we’re having trouble keeping straight when an insured needs on-hook coverage and when cargo coverage is more appropriate? Can you help us sort that out?
– Troubled About Towing
Dear Troubled,
No problem! Sometimes it’s helpful to have a cheat sheet, so check out this info from our transportation department:
| Type of Unit | Use | Type of Operation |
|---|---|---|
| Tractor or Pickup Truck with Car Carrier Trailer | Hauling New/Used Autos for Auctions or Dealers | Auto Hauler |
| Rollback Body Type | Hauling New/Used Autos | Auto Hauler |
| Hauling Disabled Autos | Wrecker Service | |
| Wrecker Body Type | Hauling Disabled Autos | Wrecker Service |
Cargo vs. On-Hook
Cargo coverage is appropriate for auto haulers transporting new/used autos for auctions or dealers.
On-Hook coverage is used for wrecker services hauling disabled autos from the location where they became disabled. On-Hook usually limits coverage to “autos” only, so there is no coverage for equipment, boats, etc.
Hopefully this will simplify things and help you figure out the right kind of coverage, but if you run into any gray areas, our transportation folks are always here to help. Give them a call anytime – they are the best!! Oh, and for a printable version of this cheat sheet, click HERE!
