Franchise businesses are structured uniquely in any industry, but when you own a franchised dealership, that’s an even more unique business model. Whether it’s automobiles, trucks, or RVs, dealerships that sell new machines are usually franchises of some sort. The automotive industry set the standard for that almost a hundred years ago as major automakers worked out their distribution chains.
Since vehicles are high-value assets that are not frequently purchased by individual customers, your professional liability and inventory risks are a bit different from merchants with more common retail operations. Your coverage needs to reflect that.
Franchise Risks and Obligations
In addition to the high risk involved in dealing with valuable merchandise and the standard coverage types you need for your property and employees your dealership also has the same risks as other franchises. That means you have to meet the brand’s requirements to stay in good standing and avoid penalties, and your business is uniquely at risk if you do not.
Learn More About Your Coverage Options
Dealership-specific coverage options like open lot insurance and garagekeepers’ policies are par for the course when you work with an established franchise dealer insurance program. You might need to go outside the program for specific coverage needs like workers’ compensation, but all your dealership-specific coverage should fall under one umbrella if you have found the right program.More