Split Coverages and Towing Risks


Having a driver involved in a crash is stressful in itself, but motor carriers may compound a bad situation if their liability, physical damage, and cargo coverages are split among multiple insurers. Splitting coverages invites confusion and communication breakdowns between parties involved.

As a motor carrier anxiously awaits resolution of the claim, the disjointed parties involved must determine who has coverage for each claim and what the policy limits are, and then coordinate clean up, towing, salvage, and storage of cargo, to name a few tasks.

Having one insurer handling all aspects of the claim is ideal. Avoiding split coverages for your operations can reduce the risk of unnecessary delays and inflated claim costs, and better protect the motor carrier from future litigation.

To illustrate this point, consider an accident involving a fully-loaded tractor-trailer that goes off the road and into a ditch. The motor carrier and its insurer(s) now face a potential claim involving a crane to pull the truck out of the ditch; towing and repairs to the tractor and/or trailer; removal and storage or disposal of the cargo; and if fuel leaked, environmental cleanup services.

Typically, law enforcement are the first to arrive on the scene and will likely call a tow company with which they have a negotiated rate to get the truck out of the road as soon as possible. In doing so, towing companies usually give the motor carrier one bill for all of the charges and will not split the charges based on the motor carrier’s various coverages and insurers.

If the motor carrier has split coverages, it is up to the motor carrier to determine which charges are covered under which policy and to file separate claims with each insurer. Adding to the chaos, the motor carrier may learn that one of its insurers has lower policy limits than the others, or one insurer is slow to pay its portion of the claim.

Delays such as these can affect how and when the other insurers are able to take action to resolve their portions of the claim. Thus, as a risk management strategy, split coverage is a risk that can be avoided. Consider having all coverages under one roof with one insurer so it can handle each aspect of a claim and resolve it in a more timely and efficient manner.


  • Report all claims immediately to your insurer.
  • Discuss policy options with your agent and find out whether all coverages can be kept with one insurer.
  • Know which insurer covers each part of a claim and what the policy limits are.
  • Be active in claim handling by facilitating discussions between your insurer, agent, and third parties.

As always, you can count on the commercial truck insurance professionals at The Daniel & Henry Company to assist you through challenging claims and all of our insurance, risk management, and safety issues. Contact us today to discuss solutions for your transportation risk management program.

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