Under the ISO Business Auto Physical Damage section, assuming the following: 1) The "auto" is a covered auto for the purposes of either collision or comprehensive. 2) The insured did NOT pay premium for Towing and Labor Does "loss" in an otherwise covered collision or comprehensive claim include towing costs? For example, a covered "auto" is involved in a collision. As a result, the insured incurred $250 towing expense and $1,000 in repairs. Would the $250 towing expense be part of covered "loss", or is towing not considered direct and accidental damage?
Arizona Subscriber
If the towing and labor are costs due to a covered accident, and the insured has purchased comprehensive coverage (as stated in your example), the towing and labor are part of the "loss" and should be covered as such. Towing and labor, sometimes referred to as roadside assistance, is a separate optional coverage for vehicle disablement from causes that would not otherwise be covered.