When owning a car dealership you will need to have car dealer insurance. Anyone that has a business trading, selling, or fixing, cars is required to carry insurance. The types of coverage required and how much coverage required is determined by the state you live in. There are numerous types of coverage offered to those that own a business in this industry. Here is a list of several available types of car dealer insurance.
Garagekeepers Insurance
Garagekeepers insurance coverage is for those who own a towing company or service station. Many car dealerships have a service station on their lot in which they service cars before they sell them or even cars that were previously bought by a customer. This would make the dealership eligible for Garagekeepers insurance. This coverage protects you from paying any outright expense should your customers’ vehicles suffer any damage that may occur under your care.
Dealers Open Lot Coverage
Dealers open lot coverage protects the vehicles in your lot should they be physically damaged. This is one of the most important types of car dealer insurance to have if you are the owner of a car dealership.
Garage Liability
This type of insurance provides coverage for property damage and bodily injury that was the result of any of the operations that take part at your car dealership. This particular insurance is usually part of a garage policy which contains several different types of coverage to dealership owners.
Business Insurance
Business insurance isn’t just designed for car dealers but for all sorts of business owners. It is a combination of several different types of coverage that will protect your business from various risks or harm.
Dealer Errors and Omissions Coverage
This insurance happens to be a package of several types of insurances. These sometime include coverage’s such as Title Errors and Omissions, Odometer Errors and Omissions, Dealer’s Legal Defense, Truth-In-Lending, and several other types of coverage. Dealer Errors and Omissions Coverage will therefore cover any dealership owner in any claim made against them that wasn’t due to bodily injury or property damage.
False Pretense/Trick and Device Coverage
These coverage’s protect your business in any case where you acquired a vehicle’s title under false pretenses or if you relinquished a title under false pretenses.
Although there are many other types of coverage for a car dealership owner to choose from, these are some of the most common car dealer insurance coverage’s. As a business owner, you will want to make sure you are well covered should anything occur. Many states have minimum insurance requirements for car dealerships. You will want to be knowledgeable of your state’s requirements and be wise about your decisions in the types of car dealer insurance you choose. It is better to be safe than sorry. With all the time and effort you put into owning your dealership being covered by many different types of car dealer coverage’s would be a wise decision. Good luck in your venture as a business owner!