Page 141 - Microsoft Word - NEW 2017 Standard Program.docx

Commercial Truck Coverage
When insuring the tow truck, it is important to disclose what this vehicle will be used for.
The insurance agent who is knowledgeable of the insurance requirements for the Recovery
Agency will have a ready market for this coverage. Not disclosing that the vehicle is used
to recover defaulted collateral will result in denial of claims and it usually will result in
cancellation of the insurance contract.

Personal Injury Coverage
This is NOT coverage for “physical” or “bodily” injury, but instead responds to claims such
as: false arrest, detention or imprisonment, malicious prosecution and wrongful entry or eviction,
as well as oral or written publications that libel, slander or violate rights of private occupancy.

There should be specific language in the certificate of insurance that the policy covers all aspects
of repossession activity, including wrongful repossession. If you do not see that language in
your insurance contract, have your insurance representative point it out. Do not accept
the policy without this language.

Remember that these explanations of types of coverage are brief and basic. When applying
for coverage, the Recovery Agency owner should ask the insurance agent to explain each
coverage in detail as to how it applies, which addresses property damage and which
applies to bodily injury. Look for the insurance agent who is knowledgeable, competent
and patient.