Insuring auto dealerships with repair and maintenance services comes with unique challenges. This sector’s complex risk factors have traditionally made it difficult to find adequate coverage. However, by combining garage liability insurance with garagekeepers liability, commercial auto, and general business liability, you can offer comprehensive protection that meets your clients’ needs. It’s crucial to ensure that all of these coverages are in place — omitting even one could leave the business exposed to catastrophic losses.
Garage Liability Insurance
Garage liability Insurance is the backbone of any auto dealership’s insurance portfolio. It covers the dealership for liabilities arising from its operations, including bodily injury, property damage, and issues related to faulty repairs or accidents involving company vehicles. This coverage is particularly important because it extends to both ongoing business operations and completed work, protecting dealerships from claims that may arise after a repair or service has been completed.
How It Works
Imagine the dealership has just completed a repair on a customer’s vehicle, but due to an error, the brakes fail shortly after the customer drives away, causing a collision. The customer feels understandably upset and holds the dealership responsible for the damages. This is where garage liability Insurance steps in, covering the costs of the claim and any legal expenses. Without this coverage, a single lawsuit could put the dealership at serious financial risk.
Garagekeepers Liability Insurance
Garagekeepers liability Insurance specifically protects against damage to customers’ vehicles while they are in the care, custody, or control of the dealership. This includes incidents like collisions, theft, vandalism, or damage during a test drive. It also typically covers a wide range of potential risks, such as fire or extreme weather events, which can cause significant damage to vehicles left on the premises overnight or during off-hours.
How It Works
Consider a situation where a customer’s vehicle is parked in the dealership’s lot overnight, and it’s vandalized or stolen. Or perhaps during a routine service, an employee accidentally backs the car into a lift, causing significant damage.
Implementing proven risk management strategies can help reduce risks, but no strategy can eliminate them entirely. With garagekeepers liability Insurance, the costs of repairing or replacing the vehicle are covered. Without it, the dealership could face significant out-of-pocket expenses, which could strain finances and damage its reputation.
Commercial Auto Insurance
While general business liability insurance covers many aspects of a dealership’s liability, it doesn’t extend to vehicle-related incidents. Commercial auto insurance covers the vehicles that the dealership owned or leased, ensuring protection no matter who’s behind the wheel. This coverage is crucial when employees drive company vehicles for business purposes.
How It Works
Imagine one of your sales associates is driving a company vehicle to pick up a part from another dealership when they figure in an accident that results in significant property damage and injuries to another driver. In such cases, commercial auto insurance steps in to cover the costs of damages, legal fees, and any potential settlements. Without this crucial coverage, your dealership could be liable for these expenses, which could have a devastating impact on your bottom line.
General Business Liability Insurance
General business liability insurance provides broad protection against common risks that can occur on the business premises, such as bodily injury or property damage. However, it does not cover vehicle-related incidents.
How It Works
For instance, if a customer slips on a wet floor in your showroom and suffers a serious injury, they could file a lawsuit against your business for medical expenses and damages. General business liability insurance would cover the legal costs, medical bills, and any settlement, protecting your business from such common but potentially costly incidents. Without it, even a minor accident could result in significant financial loss.
The Role of Insurance Brokers in Securing Proper Coverage
For brokers, the key lies in navigating the complexities of coverage to provide solutions that truly meet your clients’ needs. By securing the right combination of essential coverages, you empower auto dealerships to operate confidently. Your expertise and tailored approach help these businesses safeguard their assets, build customer trust, and succeed in a competitive market.
Ensuring Protection for Auto Dealerships With Garage Insurance
Navigating the complexities of insurance for auto dealerships requires both expertise and the right coverage. Garage liability insurance is an indispensable component of any dealership’s risk management strategy, providing critical protection against the unique garage risks these businesses face daily.
As an insurance broker, your role is vital in guiding clients toward comprehensive solutions that safeguard their operations, reputations, and financial stability. With over six decades of experience, Cochrane & Company is uniquely positioned to support you in delivering these essential coverages. We invite you to contact us today to learn more about how we can help you provide the best protection for your clients.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.
