Unlike other types of stores, car dealerships tend to keep most of their inventory outside. This not only makes it easy for customers to peruse what they have to offer, but it also allows the car lot to have plenty of open indoor space for their sales and finance teams. The downside to this is the fact that inclement weather happens from time to time. Dealership owners have little control over the wind, rain, and hail that comes down from the sky directly onto their merchandise. Thankfully, there’s a type of insurance designed for this specific circumstance.
Types of Insurance for Dealerships
Automotive dealerships require quite a few different types of insurance to ensure that everything they have to sell is protected. They even have insurance on their garage employees, making sure that mistakes and other incidents are covered, just in case something happens. However, the most important part of their business consists of their merchandise, which is covered by several different types of insurance including wind and hail coverage.
What is Wind and Hail Coverage?
No matter where you live, you’ve no doubt seen firsthand the damage that wind and hail can do to a vehicle. Hail can leave dent and dings, if it’s large enough, or just small scratches if it’s on the smaller side. Wind itself doesn’t necessarily do any of these things on its own, but it can blow everything from small rocks and pebbles to tree branches into vehicles that are at rest, as they are at a car lot.
All of this is problematic enough when it’s your personal car that’s damaged, but what happens to the vehicles on a dealer’s lot when they get damaged in this manner? They can’t be sold with dents and dings, so it’s up to the dealer to pay for the repairs to get their merchandise in salable shape once again. This can be expensive, especially if there are multiple vehicles that have been damaged. Thankfully, wind and hail coverage can kick in and take care of the expenses for you, so your dealership won’t have to pay for the repairs out of pocket.
Covering What Other Insurances Won’t
With all of the types of insurance available to dealerships, you’d think that wind and hail damage would fall under general liability, property, or even business owner’s insurance. This isn’t correct at all. The damage caused by the weather needs to be under its own policy in order to be covered. Otherwise, that storm could be expensive in more ways than one.
In order to ensure that your car lot’s wind and hail coverage is up to date, you need to check with your insurance agent. They can help you make sure that you won’t get stuck with a huge bill after the next storm.
Have Questions? Contact Charlotte Insurance
Want to learn more about wind and hail coverage for car lots? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.