Insurance built for dealerships, from the lot to the back office

Your inventory sitting on the lot is your biggest asset and one of your biggest exposures. Dealers open lot coverage pays for physical damage to vehicles you own or have for sale, including losses from fire, theft, weather events, and in some forms, theft by false pretense (when someone drives off under the guise of a legitimate test drive and does not return). Coverage terms vary by how secured and monitored your lot is, and some policies extend to vehicles in transit between locations. If you're moving units around on a trailer or under a driveaway arrangement, ask specifically about driveaway collision coverage.

Garage liability is the foundational liability policy for dealerships. It covers bodily injury and property damage claims that arise from your dealership's operations, including your parts department, service bays, and sales floor. Think of it as the commercial general liability policy designed specifically for the auto dealer environment. It accounts for the fact that your premises involves moving vehicles, test drives, and customers who may be on your lot at any hour. A single at-fault accident involving a customer vehicle or an injury on your property could trigger a significant claim, and garage liability is what covers it.

When a customer leaves their vehicle at your facility (for service, appraisal, or while they test drive another car), you are responsible for that property. Garagekeepers coverage protects you against damage, theft, or vandalism to vehicles in your care, custody, and control. This is separate from garage liability. One covers what happens to other people's property while it is with you; the other covers your liability for injuries and damage that arise from your operations. Both are typically necessary. Note that garagekeepers coverage applies to accidents and theft, not to faulty workmanship or parts that fail.

Dealers E&O covers claims that your dealership made a mistake in a transaction. Title errors, misrepresentation of a vehicle's history, violations of credit or leasing disclosure laws, and allegations of negligence in preparing paperwork all fall into this category. Even a meritless claim requires legal defense, and defense costs alone can run tens of thousands of dollars before a case is resolved. Dealers E&O pays both defense costs and any damages awarded to the claimant. This coverage is especially relevant for used vehicle dealers, where vehicle history documentation is a frequent source of disputes.

Dealerships employ a wide range of roles (sales, finance, service technicians, detailing staff) and that workforce diversity brings HR exposure. Employment practices liability insurance covers your dealership against claims of wrongful termination, discrimination, failure to promote, and harassment. Separately, dealerships handle high-value inventory and sensitive financial data, which creates meaningful employee dishonesty risk. A standalone crime policy with employee dishonesty coverage goes further than what a standard commercial property policy includes. These two coverages address very different threats, but both belong in a complete dealership insurance program.