Dealership Insurance
Guardian Insurance Agency
Keep the showroom open and the lot protected no matter what you sell.
Whether you’re a franchise or independent, new or used, vehicles or equipment, a dealership has risks that a standard business policy won’t fully cover. A tailored program protects your customers, inventory, service operations, test drives, financing activity, data, and cash flow so one incident doesn’t stall your sales.
Core coverages for dealerships
(Coverage varies by carrier and state; we’ll tailor limits, deductibles, and endorsements to your operation.)
Liability & On‑Premises Protection
- Garage Liability: Third‑party bodily injury/property damage from your sales, service, and lot operations (broader than standard GL for dealers).
- Commercial Umbrella/Excess: Higher limits over Garage Liability/Auto/Employers Liability for catastrophic claims.
- General Liability (premises/operations): Slip‑and‑fall, visitors, product/completed operations where needed.
Customer Vehicles Under Your Care
- Garagekeepers Legal Liability: Physical damage (collision, theft, vandalism, fire) to customers’ vehicles while in your care, custody, or control (service, valet, detailing).
- Options: Direct Primary vs. Legal Liability, Per‑Location Limits, Hail/Wind sublimits.
Your Inventory & Demo Units
- Dealers Physical Damage (Open Lot): Your owned inventory (autos, powersports, RVs, trucks, equipment) for collision and comprehensive (theft, fire, vandalism, hail).
- Add‑ons: Hail limits, False Pretense (fraudulent purchase, accepting bad checks/IDs), Driveaway Collision, Transit coverage, Consigned units.
Driving Exposures
- Business Auto / Fleet: Liability and physical damage for company units, parts trucks, courtesy shuttles.
- Hired & Non‑Owned Auto (HNOA): Staff using personal or rented vehicles for business (bank runs, auctions, parts).
- Demo & test‑drive endorsements: Ensure coverage during customer test drives; use written demo agreements.
Professional & Compliance
- Dealers Errors & Omissions (E&O): Defense and damages for title/registration errors, odometer disclosure issues, prior damage misrepresentation, Truth‑in‑Lending/lease violations, paperwork mistakes.
- Cyber Liability: Data breaches and ransomware involving your DMS/CRM, online credit apps, and payment portals; includes notification/regulatory response.
- Crime/Employee Dishonesty & Social Engineering: Theft of funds/securities; protection against wire/ACH diversion scams.
- Employment Practices Liability (EPLI): Harassment, discrimination, retaliation, wrongful termination.
- Workers Compensation & Employers Liability: Employee injuries in sales, service, parts, and detail.
Property, Utilities & Equipment
- Commercial Property: Buildings, showrooms, service bays, tools, lifts, diagnostic equipment, signage, tenant improvements.
- Business Income & Extra Expense: Keep payroll, rent, and operations funded during repairs after a covered loss.
- Equipment/Systems Breakdown: Mechanical/electrical failure (compressors, lifts, boilers, electrical panels, IT hardware).
Bonds & Certificates (optional, jurisdiction‑specific)
- Auto Dealer Bond / MVD bond (where required).
- Title Surety (in certain scenarios).
- Rapid COI issuance with Additional Insured, Primary & Non‑Contributory, and Waiver of Subrogation wording for landlords, lenders, and event venues.
What is Garagekeepers vs. Dealers Open Lot?
- Garagekeepers: Covers customers’ vehicles while you’re servicing or storing them.
- Dealers Physical Damage (Open Lot): Covers your inventory (for sale) on the lot, in transit, or in storage.
Why you may need Dealer E&O
Even if no one is physically injured, an administrative error can trigger costly claims: title defects, misstated prior damage, odometer issues, or consumer credit/lease violations. Dealer E&O helps fund defense and settlements tied to these professional exposures.
Pricing factors (what carriers look at)
- Inventory value and mix (autos, trucks, RVs, powersports, heavy equipment).
- Lot protections (fencing, lighting, cameras, hail nets), building construction, and fire protection.
- Operations (service/repair, body shop, detail, rental/loaners).
- Driver files (MVRs, age/experience standards), test‑drive procedures, claims history.
- Finance & insurance activity, paperwork controls, and compliance posture.
- Selected limits, deductibles, endorsements (hail, false pretense, demo, cyber, umbrella).
Practical risk controls (often earn credits)
- Key & fob control: Audit logs, two‑person end‑of‑day checks, secured cabinets.
- Test‑drive procedures: Valid license/insurance checks, defined route, sales escort; signed demo agreement.
- Lot security: Fencing, lighting, cameras, limited access points; hail mitigation (nets, indoor staging).
- Service safety: Lift inspections, lockout/tagout, PPE, hot‑work permits, spill kits.
- Paperwork: Title/odometer checklists, prior damage disclosures, TILA/lease compliance review.
- Data & funds: MFA on DMS/CRM/email; offline/immutable backups; Positive Pay/ACH filters; dual approvals.
- Vendor & sub COIs: Additional insured, P&NC, waiver; hold‑harmless language in contracts.
The Guardian way
We review your inventory, drivers, service operations, paperwork, and contracts, then build a clean stack Garage Liability, Garagekeepers, Dealers Open Lot, Auto/HNOA, Dealer E&O, Property/Income, Equipment Breakdown, Cyber, Crime, EPLI, Workers’ Comp, Umbrella with fast COIs and the exact wording your landlord and lenders demand. No gaps. No delays.
Guardian Insurance Agency — Proper protection—prior to peril.
Call
+1 888 388 2864
Visit
1818 E 1st Street #530 Santa Ana CA 92705