What coverages can dealers get through auto dealership insurance?
Most of the different coverages that auto dealership insurance makes available are either liability protections or property protections. Liability protections primarily guard against lawsuits that other parties might file against a dealership. Property protections primarily guard against loss of physical assets.
Some liability protections that are frequently available through these policies include:
- General Liability Coverage, which could cover common “slip and fall” accidents, false advertising and defamation
- Dealership Plate Coverage, which could cover accidents that involve inventory vehicles with temporary plates
- Auto Liability Coverage, which could cover accidents that involve dealership-owned vehicles (usually not inventory vehicles)
- Garage Keepers Liability Coverage, which could cover damage to customer vehicles while they’re in a dealership’s possession
- Product Liability Coverage, which could cover harm/damage that sold products cause to others or their property
- Auto Errors and Omissions (E&O) Coverage, which could cover mistaken advice that techs, financial staff and salespeople give
- False Pretenses Coverage, which could cover incorrectly releasing a vehicle because of fals pretenses
Some property protections that are frequently available include:
- Commercial Property Coverage, which could cover showrooms, office buildings, service center facilities and service equipment
- Auto Dealership Physical Damage Coverage, which could cover vehicles that are part of a dealer’s inventory
- Equipment Breakdown Coverage, which could cover service and other equipment against malfunctions
- Business Income Coverage, which could cover revenue losses that follow after a natural disaster
Commercial umbrella coverage, employment practices liability coverage, and still other protections are also readily available.
What protections are afforded by dealership plate coverage?
Dealership plate coverage typically extends to inventory vehicles that have temporary license plates. Should these vehicles be involved in an accident, the coverage might pay covered losses and liabilities that are associated with the accident.
Before purchasing any policy that has dealership plate coverage, dealers should work closely with a knowledgeable insurance agent to make sure that the chosen policy's coverage does indeed provide the protections the dealer needs.
Do auto dealership insurance policies come with surety bonds?
Dealerships in Massachusetts are generally required by state law to maintain minimum surety bonds. Although insurance companies commonly offer these bonds, the bonds themselves are most often purchased outside of an actual insurance policy. They can be bought by themselves.
An insurance agent who’s familiar with auto dealer policies should be able to also assist with surety bonds.
Where can dealerships request quotes for new & used auto dealer insurance?
If you need customized quotes for your auto dealership, contact the independent insurance agents at Roger Keith & Sons Insurance. Our Massachusetts agents can help you request customized new and used auto dealer insurance quotes from several companies. We’ll then work with you to determine which quote provides the best coverage for your dealership.
