Does insurance cover towing in Ontario?

Standard commercial policies exclude vehicles under tow. You need specific On-Hook Coverage or a Garage Automobile Policy (OAP 4) to cover client vehicles against damage during transport. Without this endorsement, your insurance only covers your truck, leaving you personally liable for the towed vehicle.

Essential Ontario Towing Coverages

• On-Hook Coverage: Essential for protecting client vehicles from fire, theft, or collision while in transit. Most Ontario municipal contracts require minimum limits of $100,000 per vehicle to operate legally.
• Garage Auto Policy (OAP 4): Mandatory if you store vehicles overnight. This covers "Care, Custody, and Control" liability, ensuring you are protected if a customer's car is damaged while parked at your yard.
• CVOR Impact: Operators with a gross weight over 4,500 kg require a valid CVOR. A poor safety rating can increase annual premiums by 25-50% or result in immediate policy cancellation.

Ensure your policy meets TSBC (Tow and Storage Safety and Enforcement Act) standards to avoid fines. Request a quote that specifically lists Garage Auto endorsements to fully protect your business assets.