Warmer weather brings heavy rainstorms with it, especially those that include hail. Whether those ice crystals are the size of a dime or a golf ball, they can cause damage to the vehicles on your lot. Since these make up your inventory, it’s problematic when those dents, dings, and broken windows are left behind by the storm. You’ll have to discount, repair, or wholesale out the damaged cars and SUVs, which can be costly.
So, what can you do to ease some of this financial pain? It all starts with a lot hail readiness plan.
Check Your Insurance Policies
First, check your insurance policies. You need to ensure that you have dealers open lot coverage. This is the policy that will cover things like hail, wind, and rain damage. Your general liability and umbrella liability policies, if you have them, may help pay for some repairs or replacements, but for the most part, your dealers open lot policy is the one that you absolutely need to have.
In addition, if your dealership doesn’t include a car repair shop, you’ll need to partner with one. Choose a shop that works well with both your insurance and your company, and set up a contract to make getting those repairs done easier.
Before the Storm
Once your insurance policies are in place and verified, it’s time to put together a readiness plan. These plans can be activated right before the storm hits so that everyone knows what they’re doing and instructions are followed.
Here are a few suggestions for your plan:
- Choose Job Responsibilities – Who is in charge of tracking the weather and warning others when storms get near? Which employees are tasked with moving vehicles indoors? It’s important to plan all of these things in advance.
- Get a Head Start – If possible, begin moving your vehicles into safe spaces around 8 hours before the storm is due to hit. This will prevent the accidents that tend to occur when everyone starts panicking.
- Protect Your Vehicles – Move your highest value merchandise (vehicles) into every possible covered area. If this leaves others exposed, move those as close to the buildings as you can for extra protection. Other options include placing special covers on the cars left outdoors.
After the Storm
Once the storm is over, and you’re sure that the damaging winds and rain are gone, it’s time to head outside and inspect your inventory. Provide your employees and cameras and notepads, and have them document the damage on every car, making sure to note the make, model, color, and VIN number in order to ensure that all of the information is at hand. From there, you can file your insurance claims and start getting the damage repaired.
Have Questions? Contact Charlotte Insurance
Want to learn more about insurance coverage for your dealership, just in case a hail storm damages your inventory? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your dealership needs.