As the owner of a car dealership, you may have hundreds of cars on your lot or in your showroom. It’s impossible to fully insure every individual car you’re selling. So how do you choose the right car dealership insurance for your business?
You want to serve your customers, not worry about risks to your company. You already have to think about keeping up with the competition, taking care of your clients and employees, and making money.
But if you’re not carrying car dealership insurance, your business is at high risk. Your dealership could be in danger to liabilities beyond your control.
We’re here to help! Here are five considerations to help guide you as you choose your insurance coverage.
It Comes Down to Risk
It’s hard for business owners to admit it, but we can’t control everything. Whether it’s weather or the actions of your employees, there are factors that will affect your business that you can’t foresee.
Insurance coverage can put your mind at ease for some of these risks. Car dealership insurance can help protect you from the following:
Theft – Dealership lots are targets for thieves. You need property insurance to protect you against loss if someone breaks into your lot or showroom and drives off with one of your cars.
Loss of Inventory – Fire, flood, and other damage to your showroom can cause you to lose valuable inventory. General liability insurance will cover many of these disasters, protecting your revenue.
Car Insurance Requirements – Different states have different mandates. You can incur penalties for not following mandated state insurance requirements.
Employee Errors – Clients look to your employees for expert advice. On the other hand, the car purchase process is notoriously anxiety-inducing. Errors and Omissions Insurance can protect you from employee mistakes.
Liability – As they’re looking at a car on your lot, a customer slips and falls, or is injured during a test drive. This is a common risk for any car dealership, and needs to be covered against.
These are risks that all car dealerships must think about covering. There are also five more important considerations you should think about in order to pick the right level of insurance for your specific business.
Five Considerations as You Choose Car Dealership Insurance
It’s understandable to feel overwhelmed as you search for the right insurance coverage. East Coast Insurance Group LLC is a great place to start. They can help you identify the coverage that is right for your business.
In the meantime, these five important considerations will start to guide you to the insurance coverage you need.
1. The Types of Vehicles You Sell
Is your lot full of luxury cars? Or do you sell only previously used autos? They types and levels of coverage you choose may change depending on your inventory.
2. Do You Have an Open Lot or Indoor Showroom?
If your cars are all kept outside, you need to think of weather damage from hail, hurricanes, or other strong weather. An indoor showroom introduces its own challenges as well.
3. Do You Have Plans to Expand?
Make sure you look at coverage that can grow as your business does.
4. Do You Offer Repairs?
It’s terrible to think about, but the fact is that one of your repairs is faulty. A customer could be harmed or lose more money. Product Liability and Completed Operations coverage can provide relief in case this happens to you.
5. Don’t Forget About the Environment!
Emissions, used oil, and car parts can all cause environmental damage. Pollution liability insurance is now available to protect your business from this kind of liability.
The main thing to remember is to be informed. Get quotes from several insurance companies and compare coverage and rates. Make sure your considerations are adequately covered.
Car dealership insurance can bring some peace of mind to a stressful business, letting you focus on selling your autos!