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Dealership Insurance

Unique coverage no matter what you sell.

 

Dealership insurance for your business needs.

The risks associated with owning a dealership are diverse, no matter what you sell. From workers’ compensation to coverage for customers’ vehicles, we’ll help you navigate the complexities and design a policy that keeps your business running smoothly.

Insurance for dealerships of all types and sizes.

Whether you sell vehicles or equipment, are a franchise or independent, or specialize in used or new products, your dealership needs an insurance policy that fits its specific needs. It’s all too easy to overlook some of the risks for which you need coverage.

Coverage for the vehicles you sell.

You don’t just need to think about insurance for your premises and stock. You also need to explore whether you face any risks of lawsuits if people suffer injuries or damage from using the equipment or vehicles you sell. If you’re dealing with new goods, you may need to help protect yourself against the risks of having to recall a particular model.

 

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What is garagekeepers coverage?

For example, if visitors leave their own vehicle on your premises while taking a prospective new vehicle for a test drive or while negotiating a trade-in, you may be legally required to have garagekeepers coverage. This helps protect against damage to the visitor’s car, including theft or vandalism.

The business side of dealership insurance.

Don’t forget to make sure your insurance covers more general business elements such as personal liability for visitors to your premises, workers’ compensation for staff, and coverage against discrimination claims and other human resources risks.

To find out more about your dealership’s insurance needs, contact us today.

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Dealership Insurance Quote Request

As an independent agency, we are here to help you find the right coverage.

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Dealers Open Lot

Risk Factor

Your inventory is your livelihood. Cars can get damaged in a number of possible ways, including collisions, weather events, or fire. There’s also a risk that vehicles could be stolen while unattended or under the guise of a test drive.

Solution

Dealers open lot (DOL) offers coverage for physical damage to vehicles for specific losses named in the policy, which may include things like fire and theft. Coverage can vary based on how protected or open a lot is and can include driveaway collision for times when your vehicles are in transit to another location and false pretense for when a vehicle is taken fraudulently.

Dealers Errors and Omissions (E&O)

Risk Factor

As much as any business tries to avoid them, mistakes can happen. Whether it’s an error on loan or lease forms or a vehicle’s history is misrepresented, someone could file a lawsuit if they feel they were harmed by your dealership. Even if the claims are meritless, they must be defended.

Solution

Dealers E&O can help cover the cost of defense if your dealership is sued. This coverage can also help pay for damages that may be awarded to another party. Policies should cover a range of errors and omissions situations such as title errors, violations of credit or leasing laws, and allegations of negligence in recording a used vehicle’s history.

Garage Liability

Risk Factor

You have many exposures associated with the operation of your dealership, including premises, auto, products/completed operations. Even a single auto accident or mechanic’s error can potentially put your business in financial jeopardy.

Solution

Garage liability insurance provides comprehensive coverage for bodily injury, property damage, and other liability exposures as they relate to the operation of your dealership and its parts and service departments.

Employment Practices Liability Insurance (EPLI)

Risk Factor

On average, it’s estimated that three out of five businesses will be sued by their employees. While there is nothing you can do to prevent someone from filing a lawsuit, there is something you can do to limit the costs of defending a legal claim.

Solution

Obtain employment practices liability insurance to protect your business and its directors, officers, and employees from alleged employment-related acts such as wrongful termination, failure to promote, discrimination, and sexual harassment.

Commercial Property

Risk Factor

Your business property is a significant financial investment. What if something happens to it?

Solution

Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.

Workers’ Compensation

Risk Factor

If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper insurance coverage in place.

Solution

Maintain workers’ compensation insurance to provide benefits to eligible employees. Otherwise, you can be penalized for every day that coverage is not maintained, as well as for any benefits an employee would have been eligible for in the event of a job-related injury or sickness.

Garagekeepers Liability

Risk Factor

Your business has a responsibility to protect the property of others when it is left with you. If your dealership includes a repair facility or you temporarily hold a vehicle that belongs to a customer, you could be held financially liable for damages to that vehicle while it is in your care, custody, and control.

Solution

You should purchase physical damage coverage, referred to as garagekeepers coverage, designed to help you protect your customers’ property and your business in the event that accidents, injuries, or property damage occurs. This protection covers the costs that arise from unfortunate and unforeseeable events, not bad workmanship, faulty parts, or warranties.

Pollutant Cleanup and Removal

Risk Factor

Dealerships face significant pollutant risks through their use of solvents, cleaning agents, paints, and other potentially harmful products. Spills could not only result in cleanup expenses, but you could also be held responsible for damage to third parties, as well as fines.

Solution

Pollutant cleanup and removal insurance can help to cover the costs of injuries and property damage that occurs as a result of a pollutant spill or leak. This could include coverage not only at your place of business, but also spills that occur while your pollutants are being transported for disposal. If your dealership has an underground tank, this coverage is a must.

Employee Dishonesty

Risk Factor

Given the potentially high value of the vehicles you sell and the amount of financial information you collect, your business is at risk for theft. What if one of your trusted employees is found guilty of doing something dishonest as it relates to his or her work with you?

Solution

Crime coverage can be obtained in your commercial property insurance, but coverage is very limited. Consider obtaining a standalone crime coverage policy that includes employee dishonesty coverage.

Business Income / Business Interruption

Risk Factor

Your business relies on nature and the outdoors, but nature is unpredictable and fickle. All it takes is a nasty storm to flood your rivers or an equipment malfunction on your ziplines before your business has to shut down for a few hours or more. Every minute you’re shut down means lost revenue for you.

Solution

Business interruption insurance compensates you for lost income if your business cannot operate as normal due to damage that is covered under your commercial property insurance policy, such as fire or water damage. This type of insurance covers the revenue you would have earned based on your financial records, had the incident not occurred. The policy also covers continuing operating expenses such as rent, electricity, and ordinary payroll.

Sign Coverage

Risk Factor
Exterior signs associated with your business are vulnerable to fire, vandalism, and weather. Most commercial property policies offer a sublimit of coverage for signs, but it might not be enough.
Solution
Evaluate your sign exposures and determine if your existing commercial property insurance policy provides sufficient coverage. If not, increase the policy limit as required.

Umbrella / Excess Liability Coverage

Risk Factor
You invite guests over for a pool party and one of your guests dives into the shallow end of the pool and is permanently injured. They hire a lawyer to represent them and after a long legal battle, you and your family are left financially responsible for their injuries. Do you have enough money in savings to cover your legal responsibilities as well as the legal defense costs?
Solution
An umbrella or excess liability policy increases your personal liability limits by adding protection over and above your current auto, boat, or homeowners policies-providing financial value and security. Excess liability insurance is available either by an endorsement to your homeowners policy or available as separate coverage.

Cyber Liability

Risk Factor

The Internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data, and financial information of your customers.

Solution

Cyber liability coverage covers unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion, or any unintentional act, mistake, error, or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology to help run your businesses.