(713) 388-6681 Houston, TX

Car Dealership Insurance

Finding success in the car dealership industry takes time and a substantial financial commitment. There is enough demand for cars, both new and used, to keep this kind of business thriving. Emerging auto technologies in electric power trains are promising and will add significant value and stock to dealerships. Maintaining a thriving business, keeping your employees happy, and staying ahead of the competition is challenging work. In addition, you have to protect your investment. Good auto dealership insurance alleviates a significant portion of this worry.

Car Dealership Insurance is a vital insurance policy that safeguards all tangible aspects of your business. Whether it is protecting your inventory of cars, valuable replacement parts, or your employees and customers, the policy ensures complete coverage. 

Do You Need It?

It is easy to write off insurance for car dealers as an unnecessary cost that will eat into your margins. It, however, offers vital coverage for things beyond your control. These risks include fire, theft, lawsuits, and physical damage that can add to your financial obligations and threaten your business's survival and continuity. Insurance mitigates this risk and eliminates concerns about the loss of your investment. 

Types of Policies

Insurance for used car dealerships is the same as for new ones. There are only differences in cost as the types of policies offered are similar. The common ones include:

General Liability: Considered as the most important cover, general liability insurance protects property damage, copyright infringements, bodily injuries, false advertising, libel, and slander. Under the cover, the provider meets all medical or legal fees emanating from hospital stays or court time. 

Business Income Interruption: This policy provides cover for natural and unnatural disasters and adverse weather events that affect the continuity of your business. It covers all lost income and all business expenses, including payroll, until you can resume operations. 

Workers Compensation: Mandated by law, this cover protects workers' wellness by meeting their medical expenses and paying lost wages due to injury or illness. While you can acquire the policy separately, it makes more sense to get it as part of your auto dealership insurance. 

Commercial Property: This covers your inventory and the premises they are in. It covers risks such as theft, fire, and vandalism.

Garage Liability: Alternatively referred to as garage keeper's liability, it extends on general liability by offering coverage for damage emanating from accidents within the dealership. It pays claims if a customer's vehicle accrues some damage while on your premises.

Errors and Omissions: As car dealerships are in the service industry, E&O cover is necessary. It covers incorrectly done work, such as reporting errors or missed service steps that could cause injury to your customers. 

New Vehicle Sales Protection: It protects you from dissatisfied customers who have bought from you. 

Qualification

Business insurance for car dealerships is a product extended to many auto dealers, including those stocking motorcycles, trailers, recreational vehicles, farm equipment, heavy equipment, and boats. Auto body shops and auto detailing centers also qualify for it. 

Please contact TWFG Insurance at 713-388-6681 to receive a free quote today.