Commercial insurance is not often the first thing the owner of a dealership thinks of when getting ready to open. Sourcing inventory, hiring staff for sales, finance, and back office, and building out a good marketing campaign all seem to come first but the reality is that without quality insurance for the dealership itself, everything else can be put at risk immediately.
Dealerships have to make sure their business is protected from losses to the building, assets like inventory and equipment, and even from bodily injury to customers walking the lot. Liability is lurking around every corner and it’s critical to know what to look for when choosing a quality commercial insurance policy.
Here are 6 factors every dealership should think of whether shopping for their first commercial policy as a new business owner or as an existing dealer looking to make a change -
- Shop for Different Coverages: Different insurance providers offer different coverage options, and shopping around can help you find the policy that provides the right coverage for your dealership's specific needs. For example, you may want additional coverage for the vehicles you keep on your lot or for specific liability risks associated with the repair of vehicles. Don’t forget to look at ancillary coverages for electronic data, employee dishonesty, and workers compensation.
- Consider Reputation & Trust: When shopping for commercial dealership insurance, it's important to consider the reputation and trustworthiness of the insurance provider. You want to work with a company that has a proven track record of providing reliable coverage and handling claims fairly and efficiently. By shopping around, you can find a provider that you trust to be there for you when you need them the most.
Make sure you are researching insurers that specialize in commercial dealership insurance and are highly rated with BBB. And don’t be afraid to ask other local dealerships who they use for the business insurance…they may know the good ones from the bad ones in the market.
- Leverage Quotes for a Better Price: Getting a good deal is always the goal when shopping for commercial dealership insurance and to do that you have to be open to getting competing quotes. There’s no reason to take the first quote given when there are many insurers in the market wanting to do business with you. Get a few quotes and circle back to an insurer and ask if they can do better since you have lower quotes for similar coverage.
If customers can haggle you for the price of their car, you can do the same with commercial insurers. That cost savings could add up to thousands a year. Get quotes from multiple insurance providers and compare coverage options, limits, and premiums.
- Assess Your Unique Risks: Evaluate the specific risks associated with your dealership, including property damage, liability, theft, and loss of income. Every dealership is different and this should be reflected in the policies you purchase. For instance, your store may not have a service lane so that level of coverage would not be needed. But if you do have a service facility and supply loaners to customers who need a car while repairs are being done, that’s a necessary coverage for those vehicles. This will help you determine the type and amount of insurance coverage you need.
- Consult a Professional: Consider consulting with an attorney or CPA when looking to get your dealership covered by a commercial insurance policy. Consultants like these can help you find the right policy and provide guidance and advice throughout the process, especially if they work within the automotive market helping other dealers like you.
If you’re a dealer who is looking to get your first commercial policy to protect your lot or simply looking to get a better deal than the one you have in place, we here at DealerSure would love to show you how much you can save.
We know…everyone says they can save you money but we know we can.
Reach out here and let’s talk…