New Car Dealer Insurance
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What Insurance Do New Car Dealer Need?
Product Liability insurance covers your business if you need to recall one of your products. It covers your costs for retrieving the defective product from the manufacturer or seller to prevent any further bodily injury or property damage.
Business crime insurance, also known as commercial crime insurance, protects against organization-related crime and the resulting losses for your small business. When someone defrauds, embezzles, forges documents, or commits theft, you're covered for the losses.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Business Owners Policy (BOP) protects you from business liability and property damage at a lower cost. BOP covers claims resulting from fire, theft & disasters. BOP also covers claims of bodily injury or property damage during your business operations.
Frequently Asked Questions
Why do New Car Dealers need insurance?
Most new car dealers think that purchasing insurance is not necessary because the cars are new. What could go wrong? A lot, even for new car dealers. And when something goes wrong with the new car your customer purchased, make sure that you have insurance, to protect your business from the risks. Otherwise, you are responsible for all expenses out of pocket.
What risks do New Car Dealers face?
New car dealers face the same risks as all other businesses. Below are some examples:
- The car your customer bought is faulty, causing an accident due to the defect. While the manufacturer is responsible for the loss, you are responsible for selling the product to the customer.
- Your employee is hit by a car while driving outside of the showroom. As the employer, you are responsible for medical expenses, rehabilitation, and lost wages for the employee.
- Your dealership is robbed. Money is stolen and cars are vandalized. You are responsible for all losses.
How much does New Car Dealer Insurance cost?
The cost of insurance for car dealers will depend on several factors. Most of the time, insurance companies will determine the cost based on the size of your business, the number of employees you have and the coverage required. To know what is the cost of your insurance policy, apply online to get a free quote or talk directly to our insurance experts.