The unique nature of car dealerships requires specialized insurance policies beyond standard commercial property insurance to cover various risks.
Commercial property insurance covers damage to physical assets including equipment, buildings, inventory, and third-party property. This type of insurance is critical for protection against disasters like fire, theft, vandalism, flood, and hail, particularly since vehicles are often displayed outdoors.
Dealer insurance, a specialized form of business insurance for car dealerships, encompasses multiple aspects of dealership operations:
This coverage protects vehicles for sale on the lot. It provides protection against wrecks, collisions, incidents during employee or customer test drives, and certain cases of theft.
Garage Keeper’s Insurance covers customer vehicles left for repairs against damage due to fire, theft, vandalism, extreme weather, and collisions.
Often confused with Garage Keeper’s Insurance, Garage Liability Insurance covers bodily injury and property damage resulting from accidents on dealership premises. It is a critical protection distinct from the coverage provided by Garage Keeper’s Insurance.
Business Interruption Insurance covers lost revenue and payroll costs during periods when the business is inoperable due to an unexpected event. This type of coverage is particularly important for scenarios such as vandalism, where the dealership may have to close for repairs.
Despite having the necessary coverage, car dealerships can face issues with insurers not honoring valid claims. In such cases, the role of insurance claim attorneys becomes essential.
Insurance claim attorneys are crucial for protecting the dealership’s interests if the insurer engages in bad faith practices, such as delaying, underpaying, or denying claims. Attorneys, such as those from firms like Raizner Slania, provide essential support in disputes against insurance providers.
Understanding the specific risks that car dealerships face and ensuring comprehensive coverage through appropriate policies is vital. Specialized dealer insurance, including open lot insurance, garage keeper’s insurance, and garage liability insurance, is indispensable. Moreover, business interruption insurance serves as a safeguard against lost profits during business downtimes caused by unexpected events. Legal support is crucial in cases where insurance providers do not fulfill their obligations, highlighting the importance of having an experienced insurance claim attorney.
