Auto Dealer Insurance Basics
Operating an auto dealership requires a certain level of insurance in order to protect your business from potential risks and liabilities. With the right type of coverage, you can ensure that your dealership is protected in the event of an accident, lawsuit, or other unforeseen circumstance. In this blog post, we’ll break down the different types of auto dealer insurance coverage and what each one covers.
General Liability Insurance
General liability insurance is designed to protect auto dealerships from financial losses due to property damage or physical injury claims. This type of coverage typically covers medical expenses, legal fees, and court judgments in the event that someone is injured on your property or if you are found liable for damages caused by negligence. Additionally, general liability insurance may also cover libel and slander lawsuits as well as copyright infringement claims.
Commercial Property Insurance
Auto dealerships require commercial property insurance to help cover any losses related to theft, vandalism, fire, storms, or other natural disasters. This type of policy will help cover the cost of repairs or replacements should any unexpected damage occur on your premises. It’s important to note that some commercial property policies may not cover flood damage; if your dealership is located in an area prone to flooding, you should consider additional flood insurance coverage for added protection.
Garage Keepers Coverage
For auto dealerships that store customer vehicles on their premises (such as off-site storage lots),garage keepers coverage is essential for protecting against potential damage or theft that could occur while the car is in their care. This type of policy provides coverage for physical damage to vehicles while they are parked at a dealership lot or while being driven by a dealer employee—providing peace of mind should anything happen while the vehicle is under their care.
When it comes to protecting your auto dealership from potential risks and liabilities, having the right type of insurance coverage is essential. The three types discussed here provide comprehensive protection against losses caused by property damage or physical injury claims, theft/vandalism/fire/natural disasters on your premises, and damage/theft occurring while vehicles are
stored at the dealership lot or being driven by a dealer employee. Understanding which types of insurance are necessary for your particular business model can help ensure that you have adequate protection against unexpected events—giving you peace of mind no matter what happens down the road!
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