How to Safeguard Your Inventory: Auto Dealer Insurance 101

As an auto dealer, your inventory is your livelihood. Protecting your inventory from exposures like theft, vandalism, accidental damage, or injuries is essential to your business success. Here’s how auto dealer insurance can safeguard your business and assets. 

1. Inventory Coverage

Inventory coverage is vital for protecting the vehicles on your lot. This insurance protects your cars, trucks, and specialty vehicles from theft, fire, vandalism, and other risks. Whether you are selling new or used cars, coverage ensures that damage or loss to your inventory won’t result in significant financial loss. 

2. Garagekeepers Insurance

Garagekeepers insurance covers incidents that happen to customers’ vehicles in your care, custody, or control. For instance, if a customer’s car is struck while on your lot, this insurance will pay for repairs. 

3. Floor Plan Insurance

In many cases, manufacturers offer this coverage. Floor plan insurance is designed to protect vehicles that are financed through a lender or financing company. This coverage helps safeguard the vehicles against damage or loss while they are still on your lot, providing peace of mind until the vehicle is sold. 

4. General/Garage Liability Insurance

General or garage liability insurance covers incidents associated with your dealership, including incidents on your lot or off, such as accidents during test drives or deliveries. This coverage is essential to protect your dealership from third-party claims. 

With the right insurance, your dealership’s inventory and operations will remain secure, allowing your business to thrive.