Includes auto liability & premises liability. Premium is determined by the county, liability limits, radius of operation, number of employees and the number of “demo’s” or furnished autos. It’s important to list all your employees, (whether they drive cars or not) to assure you are covered properly.
Coverage for auto liability is provided to customers who want to test drive the vehicle. Coverage would also extend to employees who are test driving with the customer, going to the bank, picking up parts, etc. and contract drivers delivering cars.
Coverage for premises liability insures you against a customer getting hurt on your premises. An example would be if a customer came to your lot, slipped and fell causing, injury to themselves. It is important to note that employees are not covered under this section of liability. If an employee gets hurt on your premises you would need a separate workers compensation policy to protect your business employee. Coverage can be extended to owner of the premises, landlord, or additional insureds.
This is a term used for insuring the physical damage caused to YOUR vehicle. Rates are determined by wholesale cost of your inventory, number of vehicles, whether kept inside or outside, maximum cost of any one vehicle, deductible requested, number of furnished drivers, location of the premises and radius of operation. The important thing to remember about this coverage is there's a clause that states a dealer must be insured 100% to value. It is referred to as the co-insurance clause. Ex: Insured has inventory of $200,000 of cars and he elects or takes insurance on just $100,000. In the event of a claim the insured would be underinsured by 50% and the insurance company would only be responsible for paying you 50% of your claim minus your deductible. Therefore, it is very important to insure your inventory at current values.