Auto dealerships often have hundreds of thousands of dollars’ worth of merchandise sitting right on their lot. That’s a lot of money to recoup should something happen, like a tornado, a hurricane, or even a ring of car thieves. Thankfully, you don’t have to put all of your inventory on the line and hope for the best. There are a number of insurance solutions for auto dealerships.
Business Owner’s Policy
In general, a standard business owner’s policy includes both property coverage and general liability coverage. This will kick in first should anything on your property, from the building itself to any vehicles stored inside of it, become damaged. Liability coverage protects your business from lawsuits should anything happen to a customer while on your property. Slips and falls that end in injury can be quite costly without this type of insurance in place.
Specialty Auto Dealer Policies
On top of the more general business insurance policies, there are also a number of specialty options geared for auto dealers. For example, there’s garage keeper’s insurance, which provides coverage for the vehicles that are in the dealership’s mechanics bays for repair. If something happens to them, the insurance will pay to repair any damage.
There’s also dealer open lot insurance, which provides protection for the vehicles that are left out in the open on the dealer’s property. After all, not all of them will fit inside of the structure. Should these vehicles end up getting damaged or stolen, your open lot insurance may help.
Don’t forget about product liability insurance. For example, if you sell a vehicle that turns out to be a lemon or is damaged in one way or another that isn’t discovered while it’s still on the lot, your product liability insurance can help prevent your from paying out of pocket to settle costly lawsuits and other damages.
Other Types of Business Insurance
When it comes to owning a business, you can never be too careful. It’s important to be prepared for just about anything, insurance-wise. This is why options like cyber liability insurance and business interruption insurance exist. The former helps your dealership recover from the damage left by a hacker getting into your systems, while the latter will provide you with the funds to keep your business going after a large storm or fire occurs.
In addition, there are forms of business insurance that are just plain good ideas. If you have vehicles that are used solely for business purposes, you’ll have to have commercial auto insurance policies on them. A standard auto policy won’t provide any coverage if the vehicle is damaged while being used for business.
Finally, there’s employee theft insurance and fidelity bond insurance. Both will help should your employees commit acts of theft or fraud. It’s a good idea to have these in place because you never know when one of your employees will turn on your company and try something illegal. This type of insurance will definitely assist your company in these situations.
Have Questions? Contact Charlotte Insurance
Want to learn more about protecting your inventory? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the insurance coverage plan your business needs.