Essential Insurance for Motorcycle and Auto Dealerships
Running a garage dealership comes with big responsibilities and big risks. Whether you sell motorcycles, cars, or both, the right insurance coverage protects your business, your inventory, your employees, and your customers. Your coverage needs may change based on your dealership’s size, the vehicles you sell, and how you operate. Below are key types of insurance every dealership should consider.
Garage Liability Insurance
Garage dealership liability insurance is a must. It protects your dealership from claims if someone gets injured or if property is damaged during your daily operations. This coverage includes test drives, customer visits, and even vehicle demonstrations. If someone sues your dealership, this insurance helps pay for legal defense, settlements, or medical expenses.
Garage Keepers Insurance
This insurance protects vehicles in your care. If a customer leaves a vehicle for service or trade-in evaluation, garage keepers insurance covers it. It pays for damage caused by fire, theft, vandalism, or collisions while the vehicle is on your lot or being driven by an employee. It’s especially important if you keep vehicles overnight or perform repair work.
Inventory Insurance
Your vehicles are valuable assets. Inventory insurance protects your entire stock of unsold vehicles. It covers losses due to theft, fire, vandalism, or natural disasters like hailstorms or floods. Whether the cars are in your showroom or out on the lot, this coverage helps you recover quickly from unexpected damage.
Dealer Open Lot Insurance
Dealer open lot insurance covers vehicles stored outside. If a storm damages your inventory or someone steals a vehicle from your lot, this policy pays for repairs or replacements. It’s ideal for dealerships that keep most of their vehicles on open display or have high turnover. Make sure the limits are high enough to cover your peak inventory levels.
Business Property Insurance
Your dealership isn’t just about vehicles. It also includes buildings, offices, tools, and equipment. Business property insurance protects those physical assets. It covers damage caused by fire, theft, vandalism, or weather events. If your service bays, computers, or parts storage are damaged, this coverage helps you rebuild or repair quickly.
Workers’ Compensation Insurance
If you employ mechanics, salespeople, or office staff, you need workers’ comp. This insurance pays for medical treatment and lost wages if an employee gets hurt or sick on the job. It also protects you from lawsuits related to workplace injuries. Most states require this coverage by law.
Business Interruption Insurance
A disaster can force you to shut down temporarily. Business interruption insurance replaces lost income during that downtime. It also helps pay for ongoing expenses like payroll, rent, or utilities. If a fire damages your building and you have to close for repairs, this coverage helps keep your business afloat while you recover.
Why Dealership Insurance Matters
Auto and motorcycle dealerships face unique risks. One accident, theft, or lawsuit could put your business in financial danger. The right insurance plan gives you peace of mind and protects what you’ve built.
Next Steps
Talk to an insurance expert who understands the automotive industry. At Combined Insurance Service LLC, we can help tailor a policy that fits your specific needs. Call us today at 816-847-1911 to protect your dealership and prepare for the unexpected.