Essential Insurance Coverages for Auto Dealerships in North Carolina & Beyond

Written By Charlotte Insurance on March 30, 2023. It has 0 comments.

Essential Insurance Coverage for Auto Dealerships in North Carolina & Beyond

Auto dealerships need to have the right insurance coverage in order to protect their businesses. This gets a bit tricky, as there’s more than one type of policy that they need to have in place, regardless of the size of the dealership. The goal of these policies is to keep your dealership running, no matter what happens.

Wondering what these essential insurance coverages are? Let’s go over them here.

Business Owner’s Policy

A standard business owner’s policy, or BOP, as they’re commonly known, includes general liability coverage, property coverage, and more, should something happen. If your dealership ends up getting hit by a tornado, your business owner’s policy will kick in and cover the costs of repairs, as well as, depending on your policy, cover the costs of any business that you’ve lost while the company is unable to operate.

The other type of insurance included in a BOP is liability insurance. If someone slips and falls on a wet floor inside of your dealership, your liability insurance may pay for their medical bills, if it’s found that your company or employees were at fault for the accident.

Dealership Insurance

Of course, a business owner’s policy doesn’t cover everything that a dealership has to protect. All of the vehicles on the lot need to be protected as well, in case of damage or theft. It doesn’t make sense for a dealership to have individual coverage on every vehicle, which is where special dealership insurance comes in.

This insurance includes several types of policies, all designed to protect the things that make a dealership different from a regular business. Some examples include:

  • Liability Insurance on the Garage – Since dealerships often include a garage staffed by mechanics, it’s important that your insurance coverage extends to this part of the property as well. Garage liability insurance is designed to kick in should an accident occur while in the garage. It covers personal injuries, damage to personal property, and more.
  • Lot Insurance for Dealers – This is a crucial type of insurance for dealerships because it’s a blanket policy on all of the vehicles located on the lot. The policy covers theft, damage during test drives (either by an employee or a potential customer), and more.
  • Garage Keepers Insurance – It isn’t unusual for a customer’s car to end spending several days or weeks in a dealership’s garage, depending on the extent of the damage and the availability of parts. Since these vehicles aren’t owned by the dealership, they aren’t included in the lot insurance. Instead, they’re covered by a special keeper’s insurance policy.

Other Types of Business Insurance

In addition to a business owner’s policy and special dealership insurance, a car lot often needs some extra types of insurance as well. The employees need to have health insurance in place, the company should have workers’ compensation insurance, and more. All of these extra policies are designed to provide some benefits and extra protection for everyone employed.

Need to review your auto dealership coverages? Call our team at Charlotte Insurance today, and we’ll be happy to help ensure your business is fully protected and all your insurance policy needs are met.

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