Insurance is a vital part of any business, but it is especially important for car dealerships. Car dealership businesses are selling cars, so it stands to reason that they would need some form of insurance to protect their investment. But what kind of insurance do they need, and how much coverage should they carry?
There are a few different types of insurance that car dealerships can purchase to protect themselves. Continue reading to learn more.
Commercial Property Insurance
Commercial property insurance is a type of insurance that protects the dealership against damage to the property itself. This can include the building, the grounds, and any inventory that is stored on the premises of a car dealership.
If the property is damaged, this insurance will help to cover the cost of repairs or replacement. Whether it's a fire or theft, commercial property insurance coverage will apply, with the right documentation provided.
Business Interruption Insurance
Business interruption insurance can help to cover the cost of lost income if the dealership is forced to close due to an unanticipated event. This can be due to a health lockdown or even something like a power outage (with the right proof).
If the dealership is unable to open, this insurance can help to cover the cost of lost revenue. This can be quite a vital safety net for the business, especially if the dealership is located in areas prone to natural disasters.
Dealer Operation Insurance
As a car dealer, it's important to have the right insurance in place to protect your business operation. There are several different types of dealer operation insurance that you may need, depending on the nature of your business. Generally, here's what you could consider to get for your business.
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Dealer’s Open Lot Insurance. This type of insurance protects your dealership against damage to vehicles that are on your lot. It can cover things like vandalism, theft, and weather damage.
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Garage Keeper’s Insurance. This type of insurance protects you if you offer storage or repair services for vehicles. It can cover things like damage to vehicles while they are in your care, as well as third-party liability if someone is injured.
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Garage Liability Insurance. This type of insurance is designed to truly protect the dealership from claims that may arise from the operation of the garage. It can cover things like customer injuries, property damage, and legal fees.
Car Dealership Insurance
In today’s world, auto dealerships are more than just a place to buy a car. They are often a place where people can go to get their car repaired or have it serviced. This means that many different types of risks can come along with running a dealership. Getting car dealership insurance can provide general coverage for all the risks that may arise.
Conclusion
When choosing the right type of insurance for your dealership, it is important to work with an experienced insurance agent. They will be able to help you determine the types of risks that your dealership faces and the types of coverage that you need.
Searching for auto dealer insurance programs? The J.F. Shaw Insurance Agency is an independent insurance agency in Marietta, Georgia offering auto dealers, car, home, church, restaurant, and contractors insurance. Get in touch with us today!