Dealers may think comparing commercial business insurance is easy but the reality is that it’s more complex and involved than just picking up the phone and telling some random company you ‘need coverage’.
It’s not unlike the other types of insurance we all need at some point…homeowners insurance and personal car insurance. When shopping for those policies, you’ll be expected to provide very coverage-specific details about your car, your house and property, etc.
Drivers safety features? Check. New roof in the last few years. Check.
You get the point. Insurers want as much information as they can get before giving a quote.
Commercial business insurance for dealerships is no different. You’ll be expected to have the details necessary to allow an insurer to create the best and most comprehensive policy they can for you. Accurate information is crucial to also getting the most favorable rates, too.
There are 5 common pieces of information you’ll be expected to provide to a commercial insurer when shopping for coverage:
- Property Details - They will want all the details about your dealership’s physical location, including the address, square footage of building(s), and even whether or not you own the property or lease from another entity. Even security features matter like alarm systems, permanent lot fencing, surveillance monitoring, and fire prevention systems. It may seem like a lot but how well the buildings and lot are protected matter a great deal to any insurer.
- Specific Business Details - Have detailed information ready about how your dealership will be operating including the name, location, and size of your lot/inventory. What types of cars will you sell? What is your projected annual revenue? Even the number of employees matters.
- Vehicle Inventory - Speaking of inventory, insurers need to know how many cars will be on the lot at any given time. This should include make, model, year, and estimated value of the vehicles. If you want coverage in case something catastrophic happens to your cars, you have to be forthcoming about what they are. A lot full of exotics will naturally cost more to insure than 100 cars under $10k. Insurers will use this data to calculate overall coverage limits and premiums.
- Employee Information - Disclose not only the number of employees but also their role in the dealership. This will help with strong E&O and surety bond coverage if the insurer knows who does what and where positions of liability may be. This should include salespeople, administrative staff, repair techs (if you have a service drive), and porters. You may be asked to share details on safety protocols and training that’s been conducted that shows your business is committed to reducing workplace risks.
- Previous Insurance History - Be ready to share any previous insurance history you may have related to other businesses you’ve owned. This should include prior claims or incidents. If you think it’s ok to leave this out, don’t. It’s worse if it’s uncovered after the new policies are purchased. Providing prior positive claims history can also help you negotiate better rates if you have a strong track record of safety and risk management.
Before shopping for commercial dealership insurance, find a reputable company or broker that specializes in this type of coverage. A company that understands how dealerships work from the inside out and one that has the reach to find the best and most comprehensive plans at the most favorable rates.
DealerSure is the expert commercial provider you need for your business with years of experience working with dealerships of all sizes, new and used.
We’re particularly good at comparing the coverage you have now with the plans we can provide. We welcome the chance to show you better coverage at better rates.
Reach out to us at dealer-sure.com today to see how much you can be saving…we’re willing to bet it’s a lot.