Work Comp for Florida Tow Truck & Repossession Companies

This week we’re taking a “then and now” look at the Florida tow truck and repossession industry and how trends surrounding workers compensation insurance have affected Florida drivers.


Tow truck and repossession companies have always fallen within the Florida work comp class code of “7219.” What does this mean? Your business has been identified as “high risk,” and more often than not comes with high workers compensation insurance rates.

Historically, many tow truck and repossession companies have not carried work comp insurance for their drivers (recover agents) because their drivers are 1099 independent contractors. Companies with fewer than 4 employees in the state of Florida that are non-construction are not required to carry work comp. However, these drivers may be classified erroneously and the penalties for misclassification can be harsh to say the least.

It is estimated that in 2009 misclassification cost the government 2.7 billion in underpaid federal taxes, workers comp and unemployment insurance and it is estimated that up to 30% of companies may still be incorrectly misclassifying workers as independent contractors rather than employees.


There have been some industry changes and trends surrounding workers compensation insurance. While many repossession companies and towing companies may not have carried work comp in the past, many must now provide proof of coverage per the contract requirements when competing for major (and lucrative) contracts with companies such as automobile and recreational vehicle financiers.

Where does this leave you, as the owner of a repossession or towing company? The Florida manual rate is high – 9.14%, and on top of that, many traditional
carriers in Florida are shying away from approving the code 7219 because it is loosely defined as “automobile towing” whereas repossession often involves
additional job related hazards.


YES. High-risk workers comp class codes don’t have to injure your bottom line. With PEO Advantage, owners of repossession companies and towing companies are lowering their cost of workers comp insurance and re-claiming their profits. PEO Advantage can secure work comp coverage for code 7219 (INCLUDING repossession) below 8.0%.

Here are our program requirements:

  • No previous coverage = no problem
  • Current policy being non-renewed = no problem
  • Must prove favorable claim history
  • No minimum premium
  • No minimum # of employees
  • Drivers must be covered as w-2 employees

Program benefits:

  • Includes payroll and tax administration.
  • Workers Comp Certificate of Insurance (proof of coverage in under 72hrs – if approved)
  • Workers Comp premium is calculated and invoiced on a pay as you go basis. You only pay premium based on the wages paid during each pay period
  • No workers comp annual audit
  • Includes access to a Human Resources professional
  • Includes access to discounted employee benefits

If it sounds too good to be true, just give us a call at 877-636-9525 or contact us online today. Secure work comp coverage, secure peace of mind, and go win that bid!

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