It’s not easy running a car dealership. You have to make sales and move stock off the lot. You must provide a high degree of client service and security. You also need to protect your employees and the vehicles in your care. Protecting all you have built generally means getting insurance coverage. What is some of the protection from which you can benefit?
Running an independent or used-vehicle dealership is often a profitable business. Even so, hazards that damage operations could lead to personal financial challenges. An appropriate commercial insurance package will often help cut these risks. 
Setting Up Commercial Insurance for Your Dealership
A car dealership is like any business. It will face personal risks that warrant insurance coverage. Some of the protection options you should consider standard issue include:
- Property Insurance: This can help pay for damage to structures on the property. It can also cover damage to personal possessions housed in the business. Your sign, your desks and the building itself can usually use this protection.
- General Liability Coverage: You won’t want a client to experience harm in your business. Coverage can pay for property damage or injuries customers experience on the lot.
- Interruption Coverage: If you must close for repairs, this insurance can help you pay bills during that time.
- EPLI Coverage: This protects the business following allegations of discrimination, harassment or other misconduct in employment.
- Errors & Omissions Coverage: If you cause a client personal or financial losses, this coverage can help you repay them.
- Umbrella Insurance: This provides extra liability insurance on top of your existing coverage.
- Workers’ Compensation Insurance: This provides supplementary income to employees injured on the job
You can usually get certain protection through a Business Owners Policy, or BOP. It combines many common elements of business insurance. However, not all BOPs will provide all protection. Let your insurance agent assist you in setting up targeted standardized coverage.
Once you start coverage, you’ll likely also need policies unique to the auto sales industry. Some of these might include:
- Commercial Auto Insurance: You’ll drive in your line of work and will need insurance to do so. This coverage insures vehicles used for business purposes.
- Inventory Protection: This covers losses or damage to the cars on your lot.
- Surety Bonds: This guarantees dealers will abide by the contracts made in sales.
- Garage Keepers Liability Coverage: This insures damage to clients’ cars while in your care.
Ask your Southwest Commercial Insurance agent how to tailor your coverage most effectively to your needs. It will take time to settle on the appropriate protection. However, you will likely need to have it in place before commencing operations.