Tow Canada: The Stability and Benefits of Multi-Employer Plans in the Towing Industry

Tow Canada: The Stability and Benefits of Multi-Employer Plans in the Towing Industry

In the world of towing, we face unique challenges every day. But there's one area where towers have an advantage – managing risk and costs in our industry. I'm here to talk about a little-known secret that has been benefiting towing companies for over two decades: multi-employer insurance plans.

Understanding Risk Classes

First, let's understand "risk classes." Every industry is categorized based on the level of risk involved. Towing, surprisingly, falls into a lower-risk class compared to many others. This might seem odd given the nature of our work, but it's a fact that gives us an edge in managing our businesses.

The Power of Multi-Employer Groups

What happens when several towing companies come together for insurance? We form what's called a multi-employer group. These groups allow us to pool our resources and share the risks. By doing so, we achieve something remarkable: long-term stability in rates and benefits. This stability is crucial for our businesses. It means we can plan better, save money, and provide consistent benefits to our employees.

Motor Clubs and Insurance: A Helping Hand

Some motor clubs understand the towing world like few others do. They see the benefits of having strong, reliable tow partners. That's why these clubs can be instrumental in sponsoring self-insured plans for their tow partners. In some cases, they even help with the premiums, making it more affordable for towing companies to join these plans. Although associations can also sponsor these plans, motor clubs have an advantage for 2 reasons: 1) The towers are vendors to them, not a voluntary association, and 2) Motor clubs usually screen their tow partners and often enforce training and/or performance standards making it more appealing for the health insurance carriers.

A 20-Year Success Story

Let me share something impressive: we've had two such multi-employer plans running for over 20 years. This isn't just about paying premiums and getting coverage. It's about a partnership that brings tangible benefits. Periodically, when there are excess premiums – money that wasn't needed for claims or expenses – they are returned to the towers. Imagine that! Getting money back from your insurance plan. This refund is a bonus for managing our risks well and a testament to the effectiveness of these plans.

Why This Matters

You might wonder, why is this important for a tower? Well, in our business, every penny counts. Lower insurance rates mean we can invest more in our equipment, training, and staff. It also means we can offer more competitive prices to our clients. More importantly, it brings peace of mind, knowing that our risks are well-managed and our future is more secure. Another often overlooked benefit is that offering a quality affordable benefits plan can help to attract and retain employees who have families, and these employees often have a track record of sticking around longer, and not jumping for a nickel raise.

Joining a Multi-Employer Plan

So, how does a towing company become part of such a plan? It starts with understanding your own business's risks and needs. Then, it's about finding the right group that aligns with your goals. Often, industry associations or motor clubs can guide you in this process. Remember, it's not just about finding the cheapest plan but finding one that offers stability and long-term benefits.

The Future Looks Bright

The towing industry is evolving, and with it, our approaches to managing risks and costs. Multi-employer plans are a proven method, offering stability and benefits that individual policies can't match. As we look to the future, these plans will continue to be a cornerstone for smart, forward-thinking towing companies.

In Conclusion

To my fellow towers, I encourage you to explore the world of multi-employer insurance plans. They represent a unique opportunity in our industry – to control costs, manage risks, and build a stronger, more stable future for our companies and employees. Together, we can make the most of this opportunity and continue to serve our communities with the same dedication and resilience that define our industry.



This article aims to provide a basic understanding of multi-employer insurance plans in the towing industry and should not be taken as professional financial advice. Always consult with a financial expert or insurance professional for your specific needs.

About the author: Ralph Weber first entered the towing and recovery industry in the Canadian Army Reserve in 1978. Then between 1989 and 1995 he was director of motoring services at CAA Manitoba. In 1996 Weber started an insurance agency initially focusing on an underserved industry…the towing industry. His agency has grown into a multi-million dollar agency, but to this day almost half of his clients are towing companies.

Ralph can be reached at or at 905-228-3339 ext 61

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