A car dealership is quite demanding and a big investment financially. Whether a dealership sells used or used cars, other services provided include vehicle financing and insurance. Services also provided by car dealerships include car washing services, vehicle towing, leasing of cars, car repair and bodywork, and selling of car parts and accessories.
Some car dealers sell the vehicles in showrooms, but most are displayed in open lots outside the building. The cars are either purchased directly from the manufacturers, trade-ins from customers or through auctions. In some dealerships, cars are used for campaigns or by celebrities during high profile social events. There are many risks involved with a car dealership. Getting the right insurance for your business will ensure you are protected if any unforeseen events from lawsuits.
Cost of Auto Dealers Insurance
There are key factors to consider before purchasing an insurance policy. These include the location of the dealership, the number of employees, sales, and claims history.
Type of Insurance for Auto Dealers
To ensure you are protected, having a professional insurance agent will help you get the correct coverage for your car dealership, employees and customers.
Some of the coverage’s needed include
Commercial General Liability
The policy protects you from third-party injuries and property damage claims. For example, if a customer slips and falls while at your dealership, the policy will cover any associated costs.
The building where you have your dealership and everything inside is at risk of fire, theft, vandalism, storm or any other peril. Commercial property insurance protects your business and its contents by covering the cost of repair or damage.
The policy protects your employees and car dealership from work-related injuries or illness. It will cover the medical expenses and lost wages.
Why Auto Dealers need Insurance
An auto dealer business has diverse and complex operations, as stated above. If a car is stolen from your dealership, or a staff member has an accident during a car test drive, or the customer’s car is damaged while at your property, all these can lead to a lawsuit. Paying any of the expenses out of pocket could cause serious financial damage. It is important to make sure a reliable insurer adequately covers you. An auto dealer insurance is basic coverage that is required.
Car dealership exposures include
- Crime risks
- Body injury exposure
- Property exposure
To know the coverage needed for your dealership, get an insurer who is experienced with car dealers risks and exposures.