Arroyo Insurance programs: 3 Risks Covered By Insurance for Car Dealers

3 Risks Covered By Insurance for Car Dealers

As the operator of a car dealership, you are responsible not only for the business and property but for multiple vehicles, their maintenance, and the company’s other operations. This can leave you, your employees and your clients open to a variety of challenges and vulnerabilities, all of which can be covered by a strong car dealership insurance plan. According to Arroyo Insurance programs, these are some of the most common risks faced by dealerships.

1. Open Lot Risks 

Depending on your business, you may or may not have basic protection for your vehicles, usually consisting of a fence or a barrier. Many dealerships have open lots, which lack such protection. It exposes the vehicles to a plethora of risks, such as collisions, environmental damage, and criminal actions. Dealer’s open lot insurance covers for such risks, depending on your preferences.

2. Garage Liability 

The work performed at your dealership’s garage can be dangerous to people and property alike. An insurance plan can sometimes include garage liability, which covers a wide variety of damages done to a client’s non-vehicle property, third-party injuries to clients or employees and other situations.

3. Garagekeepers’ Risks

Your garage shop can potentially damage a client’s vehicle, even when not caused by your employees or equipment. It can be vulnerable to weather, vandalism or theft. Unlike garage liability, garage keepers’ insurance covers only the customer’s vehicle.

The various services provided by your dealership also increase several risks. The right car dealership insurance can protect your business against these scenarios.