Once you hook up a vehicle, it is in your care, and you are responsible for everything that happens to it. If a vehicle under tow or haul was damaged due to collision, fire, explosion, or theft, you are responsible for the repair and replacement. Don’t be fooled into thinking regular General Liability will protect that shiny new car while it’s behind your tow truck. Two companies need special liability insurance to protect the business from their towing operations and the customer vehicles’ while on hook.