The demand for cars has been increasing for several decades now, and it isn’t likely to drop off in the future. Setting up a dealership could be a great way to make a profit, but you have to prevent losses by getting the right kind of insurance. Today, let’s have a closer look at dealership insurance policies and what kinds of events they protect you from.
What Kind of Dealership Insurance Does My Business Need?
Most dealerships have a lot of expensive inventory, so theft or a natural disaster could put them out of business. To protect against this, they need property insurance and possibly building insurance. It’s also good to get liability insurance and workers’ compensation because these policies cover the costs of a lawsuit, for example, because someone got injured while at the dealership.
Every day, customers will come to your dealership and take cars for test drives. Even if you take all necessary safety precautions, accidents can happen. If someone gets hurt while they are on your premises or if their property gets destroyed, they can sue you and ask for compensation. A liability insurance policy will protect you against such lawsuits and cover your legal fees.
Customers aren’t the only ones that can get hurt at your dealership. Your mechanics will be working with potentially dangerous equipment, and your salespeople will spend a lot of time driving cars. For this reason, every dealership owner who employs others needs to get workers’ compensation. That way, you’re protected against lawsuits filed by your employees.
As mentioned, most dealerships have a lot of expensive inventory in the form of cars, other vehicles, car parts, and tools. If your business gets broken into and your materials get stolen or if there is a natural disaster, you might lose hundreds of thousands of dollars. That’s why almost every dealer needs to get property insurance.
Many car dealers run their business out of a rented space, so they might not have to worry about insuring their store. However, if you own the building your dealership is located in, you might need to get property insurance to protect yourself against storms, floods, fires, vandalism, theft, and other disasters.
How an Insurance Agency Can Help
As you can see, someone running a dealership needs to get a wide variety of policies to prevent disasters that could end in bankruptcy. If you want to make sure you’re covered, contact an insurance agency and ask the experts to analyze your company’s risks.
That way, you can avoid expensive mistakes and run your company without worrying about potential disasters. What’s more, your agent can tailor your policy to your situation, so you’re not paying for anything you don’t need.
Taking out the right kind of insurance is crucial because running a dealership can be risky. The easiest way to find out more about the various policies available in your area is to speak to a professional agent. Give us a call at ISU Armac to discuss your dealership’s insurance needs with one of our experts and get the best quotes.