Insurance For Auto Dealers

Auto dealers must obtain various types of insurance to keep themselves protected. These coverages include General liability, Garage liability, Bonding and Worker’s compensation. It is important to follow guidelines to minimize the risk of accidents. Some insurance companies provide a list of approved safety training courses. Others may allow dealers to develop their own safety programs. Sticking to a preset route for test drives can also reduce the chances of an accident. Some insurance companies offer discounts for sticking to these predetermined routes. az auto insurance quotes

Worker’s compensation

Worker’s compensation insurance is an important component of protecting employees in the auto dealer industry. It provides coverage for lost wages, medical expenses, and legal fees in the event of a work injury. If an employee has a serious accident while on the job, this insurance covers all medical costs, including doctor’s bills, hospital stays, and prescription drugs. It can also reduce the amount of money spent on legal fees, and it can even provide death benefits to the employee’s family members.

General liability

Auto dealers should have general liability insurance to protect their assets from lawsuits. Generally, liability insurance covers a wide variety of incidents, including injuries and property damage. It also protects a business against the costs of litigation and business interruption. Dealers should also consider purchasing commercial property insurance, which will protect the premises. Commercial property is one of the dealer’s most important assets.

A general liability insurance policy will protect an auto dealership from a variety of risks, including bodily injury, damage to a customer’s property, and advertising injury. These policies will also protect the inventory of a car dealership.

Garage liability

Garage liability insurance is a policy that covers the liabilities and expenses a business faces in the course of its operations. It can cover everything from general liability to advertising injury. It also provides protection to the named insured, its employees, partners, and shareholders. It is important to know that a garage liability insurance policy does not cover all the risks and expenses that are associated with running an auto dealership.

The first thing you should know about garage liability insurance for auto dealers is that some states require a basic liability policy for auto dealers while others require comprehensive coverage. To find out the exact requirements in your state, contact the state dealer license bureau.

Bonding

In order to protect customers, auto dealers must have bonding insurance. This is a surety bond that pays for damages and losses caused by a wrongful act. The cost of an auto dealer bond depends on several factors, including your credit score and experience in the auto industry. For instance, a dealer with a high credit score will pay anywhere from one to five percent of the bond amount, while a dealer with a poor credit score will pay as much as twenty percent.

It is important for auto dealers to keep their paperwork in order. Having pristine documents, a clear relationship with customers, and adhering to legal obligations within the bond language will help protect you from the risk of a claim. Additionally, each state has its own licensing and bonding requirements.

Cost

Auto dealers have to consider various aspects when choosing the right insurance company. One of these is the coverage that is required for their vehicles. Test drive insurance is important because it protects both drivers and vehicles while on test drives. This type of insurance requires marked license plates to prove that the driver has the proper insurance. In addition, employers must have employer liability insurance to protect themselves from any employment issues.

Many automotive businesses choose a one million-dollar limit for their general liability insurance. However, this limit may not be adequate for a small business. Moreover, the cost of general liability insurance for auto dealerships varies depending on the area. In high-crime areas, premiums for such coverage are higher than in rural areas.