Trailer interchange insurance is a type of coverage available under either the truckers or the motor carrier policy form that covers your legal liability for damage to trailers owned by others. Coverage can also be obtained with an endorsement of your business auto policy (BAP). Every towing business needs sufficient on-hook towing insurance coverage. Otherwise, expect to pay out of pocket for on-hook vehicle repairs. Also, do not worry about the tow truck insurance premiums hurting your profits. Even minor dings and dents on a newer vehicle could already set you back by a few hundred bucks, already costing more than insurance does.