Page 140 - CARS Standard Program

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.