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Selling used cars can often be a profitable endeavor. Nonetheless, as a business owner, you have to protect all of your assets. Given the expensive nature of your business, you need the right insurance coverage.

Running a used car dealership is not like running a normal main street business because it involves accidents that could happen at your location and accidents that could happen while you're on the road. The risks running a used car dealership and the assets you hold are unique. You often don't need a one-size-fits-all policy when it comes to insuring your operation.

Insurance Options for Your Dealership

As you prepare to insure your used car dealership, consider the risks associated with it. There are numerous insurance options available to car dealerships. You usually need more than one of them to function safely and protect your business, employees and livelihood. Consider how some of these options might help you:

  • Garage Liability Coverage: Car dealerships expect foot traffic and customer visits, however, you conduct business in your store as well as on the road. Therefore, you need to protect yourself in both areas. A good garage insurance policy can help. A well written policy can provide coverage for the areas mentioned above as well as: driving a dealer owned vehicle for personal use; being involved in an accident with a driver that either has either little or no coverage; and even for damaged to property that you lease but don't own.
  • Property Coverage: Like all businesses, you need to protect your lot, buildings, signs, banners and furnishings. This type of protection can help provide funds to repair and replace those assets.
  • Dealers' Lot Coverage: The vehicles at your dealership are expensive and valuable. Without them you'd be out of business. They need specialized insurance protection. Dealers' lot coverage is an important asset in this case. It can help protect the vehicles on your lot from collision and comprehensive damage. It may also protect against weather, hail, fire, theft and other risks. There's even coverage available for a vehicle that isn't returned after a test drive. (This is not considered theft and not covered under a standard garage policy!).
  • General Liability Coverage: Because a standard garage policy doesn't include all the coverages of a standard general liability policy, it's important to know the general liability coverages that need to be included.
  • Workers Compensation Insurance: There's always the risk of employees getting hurt on the job. Car dealerships have increased risk due to their employees being out on the road. If they do sustain an injury, they may have to take time off work to recover. Most states require businesses to carry workers compensation insurance. Workers compensation insurance can help you pay an injured employee for their job-related injury costs, including medical bills, rehab costs and lost income.
  • E & O Protection: Auto dealers have a responsibility to correctly protect the assets of clients. If they fail to do so, this could cause financial liability problems for the client. E & O coverage can help protect the business if professional mistakes harm clients. From not correctly completing a financing form, to title or odometer issues, this coverage can provide peace of mind and security. Especially when all it takes for things to go south is being accused of wrongdoing.

Need insurance for your dealership? Call Southwest Commercial Insurance at (737) 777-6420 for a free used car dealership insurance.

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