I think the question is did your insured took reasonable care of the car when it was in their custody. If they did, then they're probably not legally liable. To perserve a good business relationship for the tow company, it's probably better for them to buy Primary Direct rather than legal liability.
gmann1957 wrote:Our agency just recently had a client insured with progressive with a loss. our client is a towing operation. His tow truck caught fire and destroyed the tow truck and the autos he was towing were damaged as well. Progressive paid our insured for the damage to his truck, but denied to pay anything on the autos that were being towed despite our insured having on'hook cover -L (Legal Liability). Their reasoning for denial is that our insured had no legal liability as they state the cause of loss was a mechanical failure. Is a vehicle catching on fire a mechanical failure? If our insured is not legally liable, then who is? No one else was involved and the cars were in his CCC.