A towing or collateral recovery company that seizes private vehicles pose a unique set of risks. A recovery or tow company fidelity bond is an excellent coverage for the protection of a firm's clients and for the belongings of third party vehicle owners. In addition to making the recovery firm more attractive to banks and motor vehicle finance companies, a covered towing operation can advertise itself as a "bonded enterprise". This type of commercial crime coverage is a "third party fidelity bond" or "dishonesty bond". Fidelity bonds for towing and recovery may be written on a blanket basis that protect ALL clients of the firm or per specific client such as a finance company. A fidelity bond transfers the risk of dishonest acts of employees of the recovery service to the insurer. The policy may also be broadened to a full fidelity product which offers internal theft (embezzlement) protection for in-office operations. Employee theft from client property is common. Your towing business may be vulnerable to losses like these.
Background investigations, reference checks, interviews and license checks are essential risk management tools however they are not guarantees that a driver or agent will not commit a dishonest act. One significant loss can zero a tow and recovery company's revenues. A client lawsuit against the firm can result in bankruptcy, loss of license and irreparable reputation damage in the collateral recovery business. Employee theft is the cause of over a quarter of business failures so a broad fidelity bond can mean the difference between closing the doors and running a profitable business that enjoys the trust of its clients.
National fidelity bond leader, Surety One, Inc., specializes in underwriting fidelity risks for ALL types of businesses. We NEVER turn deny an applicant but rather offer terms specific to each client's unique exposures. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here to discuss a towing company fidelity bond need. We offer commercial crime coverage, cyber risk and hi-cap third party fidelity bonds in all fifty states, Puerto Rico and the U.S. Virgin Islands.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.