Repossession Agency Insurance Coverage Checklist

Repossession Agency Insurance Coverage Checklist

The coverages a repossession agency business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.

Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for repossession and recovery agencies, including storage lots and skip tracing. Priorities reflect typical exposure for this class; confirm against the agency's actual operations and lender agreements.

Core almost always needed · Prevalent commonly carried in this class · Situational depends on specific exposure

Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.

Have it?CoverageWhy this business needs itPriority
Repossessor Errors & Omissions (Wrongful Repossession)Covers claims of wrong-vehicle recoveries, repossessions after an account was cured, conversion, and breach of the peace — exposures standard GL often does not cover and lenders commonly require.Core
Commercial Auto LiabilityCovers tow and recovery trucks operating day and night, often in residential areas and on quick-pickup jobs.Core
On-Hook / Cargo CoverageCovers damage to the recovered vehicle while it is being towed or transported.Core
Garagekeepers Legal LiabilityCovers recovered vehicles in the applicant's storage lot against theft, fire, and vandalism.Core
Commercial General LiabilityCovers premises and operations injuries, including bystander injuries during recoveries. Confirm assault and battery is not excluded.Core
Workers' CompensationRecovery agents face confrontations, assaults, and hookup injuries.Core
Personal Property / Bailee CoverageCovers debtors' belongings left in recovered vehicles while in the applicant's custody — a recurring regulatory and consumer complaint issue.Prevalent
Umbrella / Excess LiabilityExtends limits above auto, GL, and employers liability; confrontation and shooting claims are severe.Prevalent
Cyber / Privacy LiabilityCovers debtor personal data, skip-tracing records, and license-plate-recognition data.Prevalent
Employment Practices LiabilityCovers claims by agents and staff, including misclassification of 1099 agents.Situational
Crime / FidelityCovers employee theft of stored property, personal belongings, or fees collected.Situational

The coverage gap most often missed

The coverage most often missing for repossession agencies is repossessor errors and omissions. Wrongful repossession — taking the wrong car, a car whose loan was already cured or placed on hold, or a servicemember's car without a court order — is frequently framed as conversion or a statutory violation, not bodily injury or property damage, so a general liability policy may not respond. Federal regulators and the DOJ have repeatedly acted on exactly these fact patterns. Lenders and forwarders usually require E&O in their agreements; confirm the limit and that it covers subcontracted agents.

Not sure you have everything on this list?

Send us the checklist and we'll review your repossession agency coverage line by line, then market it across multiple carriers that compete for your account.

Frequently asked questions

What insurance does a repossession agency business need?

The core coverages for a repossession agency business are Repossessor Errors & Omissions (Wrongful Repossession), Commercial Auto Liability, On-Hook / Cargo Coverage, Garagekeepers Legal Liability, Commercial General Liability, Workers' Compensation. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.

Is this checklist insurance advice?

No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.

Can Cory Washington & Co. review my repossession agency coverage?

Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.

This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.

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