Towing and Recovery Insurance Request a Quote If you operate a towing company without property towing and recovering insurance, you may be carrying a lot of unnecessary risk. The best form of this insurance takes into account the three distinct areas of liability that you have.Your liability in towing and recovery comes from the vehicles you drive, the cargo you tow and the property you garage. You may be worried about the costs associated with coverage but don't be. The peace of mind that comes from full protection will be well worth the very reasonable premiums you'll pay.You may think that you are covered through your general business insurance or vehicle policy. Both on-hook and garage liability have special considerations that are protected with towing and recovering insurance. The best insurance will cover the vehicle liability, on-hook cargo liability and garage liability.