Running an auto dealership isn’t for the faint of heart. There are a number of things that can go wrong, many of which can lead to expensive repairs that hit your company’s bank account hard. While having a number of solid insurance solutions in place can help, it’s important to be prepared for these risks. Here are the top five situations that may come your way.
1) Hacking and Other Cybersecurity Issues
You may think that owning an auto dealership means that you don’t have to worry about hackers and other cybercriminals getting into your computer system. This is incorrect. Since dealerships are doing a lot more through computer systems these days, tracking inventory, sending out loan applications, and more, it’s crucial to have the right protections in place. A cybercriminal can break into your system and steal customer data pretty quickly. This is where cybersecurity insurance comes into play, helping you recoup any losses and assisting you with putting a stronger system into place.
2) Employee Dishonesty
How much do you trust your employees? You’d probably answer that with something positive, like “I trust them completely.” This is both good and bad because even the best employee might make a mistake or do something wrong that ends up leaving your dealership in financial trouble. From stealing cars to inputting incorrect information on a credit app, you could have to pay a lot of money out of pocket should you not have the right types of liability insurance in place.
3) Liability Claims of All Kinds
Speaking of liability, any time you have customers or their vehicles in your dealership, you run into potential risks, like injuries and damage. From slips on the floor that end in broken bones to issues in the garage with the mechanics who repair vehicles, you run the risk of lawsuits. Thankfully, there are garage keepers policies and other types of liability insurance to mitigate those risks.
4) Issues with Inventory and Property
Unlike clothing stores, furniture shops, and other types of businesses, your merchandise sits out in the open almost all of the time. This means that those cars, trucks, and SUVs in your inventory run the risk of getting stolen or damaged. You’ll need to have insurance policies like dealer open lot insurance in place to protect your inventory. Plus, a good property insurance policy can help keep you from having to pay a lot out of pocket should your business’ building get damaged.
5) Loss of Business Due to Storms
Unfortunately, storms are a major part of life for those on the east coast. Hurricanes find their way over, bringing with them high winds, heavy rains, and even tornadoes in certain areas. Since Your auto dealership has vehicles stored outdoors, as well as inside of a main structure, you run the risk of having to pay for damages and even totaled vehicles after the storm has cleared. Thankfully, specialty insurance options, like business interruption insurance and dealer open lot insurance can help.
Have Questions? Contact Charlotte Insurance
Want to expand your business coverage to mitigate your auto dealership’s risk? No problem! Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the insurance coverage plan your business needs.