What five key types of coverage should auto dealers have?


It takes a lot of effort to run a car dealership, from the long hours spent at the office to the overhead expenses. There are a variety of dangers that you, your employees, must deal with. What happens if someone Burglarizes your car dealership and takes multiple vehicles?

What happens if you have an unplanned flood or fire, and your property or goods are damaged? What happens if someone trips while visiting your showroom and sues you as a result? The dangers of going without insurance could end up costing you much more in the long term. Having the proper coverage is crucial because this. Here are five insurance choices to think about so you can run your business without stress.

1. Insurance for Commercial General Liability

The cornerstone of any liability insurance package for business owners is commercial general liability insurance or CGL for short.

In essence, you could be held liable and face a pricey lawsuit if something goes wrong on your property, like a customer slipping on some ice as they enter your facility and hurting themselves. CGL insurance is made to shield business owners from liability claims for third-party property damage or physical injury.

2. Insurance for Commercial Property

You need to be concerned about more than just selling vehicles. Additionally, you must be ready for the possibilities of theft, vandalism, and fire. Businesses can and should take safeguards against these dangers by doing things like stepping up security, preparing staff for emergencies, and keeping the tools needed to put out a fire on hand. But sometimes these measures are insufficient.

Equipment, buildings, inventories, and other tangible assets, as well as the property of third parties, can all be protected by commercial property insurance. Additionally, it can assist you in replacing lost items and defraying some theft-related expenses.

3. Protecting the sales of new cars

You can’t win everyone over. Occasionally, despite your best efforts, the new equipment you sell to clients may not live up to their quality standards. If a customer isn’t quite satisfied, this coverage can aid in defending your company.

When a consumer files a claim because they are unhappy with the vehicle they bought from you, we will pay the claim.

4. Workmanship Guarantee by Mechanic

Human error occasionally occurs because we are all only human. However, some people may pay more to fix those errors than others, particularly if you own a car shop where customers’ cars are repaired. Errors caused during the installation of a faulty part or as a result of poor work on customers’ vehicles are covered by insurance.

As an illustration, suppose your mechanics replace the steering wheel for a customer who brings their automobile in to be serviced. However, the customer discovers their steering wheel is malfunctioning once more a few days later. Do not fret! Perhaps covered by the mechanic’s warranty of work.

5. Insurance Against Business Interruptions

Standard insurance policies often only cover loss or damage to tangible assets (such as your building, inventory, and equipment), not lost profits if an unforeseen occurrence prevents you from carrying out your normal business operations.

Therefore, your policy can pay for the expense of restoring the damage if, for example, your car dealership is vandalized. However, if you have to stay closed throughout regular business hours to fix the damage, you could still lose money. Business interruption insurance can help with that. If something terrible happens, you can still collect the money you would have made if it hadn’t been a tragic instance. This can significantly lessen the impact of a revenue loss on your company. When running a business, you have a lot to think about. Our team of specialists at Commercial Coverage Plus has the knowledge you need to support your risk management and business continuity planning. Visit our insurance solutions for auto dealers website right away to get started!