Auto dealerships are complicated businesses. They need skilled sales teams, precise accounting and managing, and strategic business plans. In addition, a car dealership needs to have good insurance. Auto dealers do not purchase car insurance in the same way as consumers do. Because the cars on the lot are not registered to drivers, it is not necessary for them to be insured individually. However, there are still ways to protect the assets of the business and the people who work at, or buy cars from the dealership. Some of the most common types of insurance are general liability insurance, specific auto garage liability insurance, and auto dealer workers comp.
General Liability Insurance
Liability insurance is a general type of insurance that protects the assets of the company. It covers most damages or injuries that occur on the dealer lot, whether caused by employees, customers, or outside forces.
Auto Garage Liability Insurance
Specific garage liability insurance is the equivalent of car insurance for dealers – it protects the dealer against damages caused by accidents involving cars from the lot or customer cars, whether caused by employees or the customers themselves.
Auto Dealer Workers Comp
Workers compensation insurance is exceedingly important for employees of a car dealership. If an employee becomes injured while working, auto dealer workers comp will cover medical costs and lost paychecks for the injured worker.
By purchasing the right types of insurance, car dealerships protect themselves, their customers and their employees.