Any business, large or small, faces challenges in its daily operations, but some are more considerable than others. Few end up involving insurance companies due to claims or liability issues that can arise, but it’s nonetheless something for which all businesses must be prepared. This is true of towing firms based in Quebec, and elsewhere across Canada, because in many cases companies could do something that leads to real insurance concerns. For that reason, having the right kind of coverage is crucial.

Often, tow truck operators may not even need to specifically do something wrong for a liability concern to arise, according to a report from the CBC. Late last year, a 35-year-old Montreal man was arrested for allegedly setting fire to four tow trucks around the city in a three-day span. This was apparently in retaliation for his own vehicle having been towed a few years prior, at least based on what the man told police when he was arrested.

Furthermore, the man seemed to target tow trucks somewhat indiscriminately, because the tow trucks that were burned were owned by a few different companies, the report said. It’s also possible the man was connected to a number of other incidents involving tow trucks. Meanwhile, it was possible that the man needed to have a psychological evaluation.

Additional issues

Of course, incidents like this are going to be pretty rare overall, but disgruntled customers are not. While most towing businesses do their jobs effectively and within the boundaries of provincial rules, there’s still little to help them avoid making people upset if their car is towed, according to a separate CBC report. However, as with any industry, there may be some bad actors that give other companies a bad name.

For example, a towing operator in Laval was recently found to be the subject of nearly 1 in every 5 consumer complaints filed against all such businesses in Quebec, the report said. These complaints lay out a number of charges including improper debt collection or billing, and misleading or unfair practices. Anecdotally, that could include unlawfully towing vehicles to charge exorbitant fees to their owners.

“We could say it’s one of the top companies regarding complaints,” Charles Tanguay, a spokesman for the office, told the news agency. “We issue to them a warning letter saying they should comply to the act regarding the collection of certain debts. And specifically, they should stop doing harassment, or threats, or intimidation.”

How does this relate to insurance?

Obviously the vast majority of towing companies don’t face that kind of scrutiny, but other problems can still arise that could lead to liability or legal issues. That, in turn, highlights exactly why Quebec-based towing firms need to make sure their insurance needs are being met on an ongoing basis. Any potential liability issues for which they have not planned could end up having a negative impact on their bottom lines, so revisiting their needs as their businesses change and grow is crucial to ensuring a successful business.