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Franchise Insurance Options for Vehicle Dealers

Franchise Insurance Options for Vehicle Dealers

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.

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Insurance Policies Your Business Needs

Insurance Policies Your Business Needs

It’s a given that your business should carry general liability insurance. This will protect you and your business against claims of bodily injury or property damage that result from your business operations. In addition to general liability, here are some situations where other insurance may be needed.

  1. You Engage in Operations With Another Business

When you hire a contractor to do work at your place of business, such as construction or repairs, when an accident occurs from the work they perform, your business could also be at risk. Carrying contingent liability insurance will protect you against any claims that result from injury or damage occurring as a result of another business associated with yours.

  1. You Have Employees

If you have even one employee, your business should carry workers’ compensation insurance. No matter how safe or simple the work your employees perform, accidents can happen. The worker’s compensation will cover any medical treatment or payouts for disability.

  1. You Manufacture Products for Consumer Purchase

You may think your product is safe, but you have no control over what consumers do with that product once it’s in their hands. Product liability insurance will protect you if your business finds itself named in a lawsuit due to damages incurred by a consumer.

Always talk to your insurance provider to make sure your business is covered in every conceivable way against liability.

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