Running a car dealership requires maintaining a quality inventory of vehicles, managing a successful sales team, and providing services for customers. However, all of these areas come with risk, so sufficient business insurance coverage is essential for dealers. Below are several policies to consider for your company.

What Business Insurance Policies Do You Need for a Dealership?

1. General Liability

General liability insurance is beneficial for all businesses. It protects you if you are liable for an incident that occurs on your property, such as a customer who slips and falls on your showroom floor. It also covers you if someone sues your dealership for false or misleading advertising material.

2. Commercial Property

This policy covers damage to your facilities. This may include vandalism, fire, flooding, or theft, and it is essential if you have cars in the parking lot. Some policies also include coverage for additional parts or equipment, which helps dealerships that work with expensive vehicles and components to customize cars.

3. Sales Protection

Any business that sells products will have some customers who aren’t happy with what they receive. Sales protection policies help cover your business if a buyer files a claim against you. This can happen for many reasons, such as if their vehicle breaks down after the purchase, or if the customer feels like the car they receive was not the one that you advertised to them.

4. Workers Compensation

Workers' compensation policies cover the pay and medical expenses for employees who suffer an injury on the job. For car dealers, employees who repair vehicles or work in busy showrooms are especially vulnerable to issues. If a part falls on an employee when he’s repairing a car, or a salesperson slips on some water in the showroom, this will cover the expenses. Many states also require employers to have this policy, as well.

5. Garage Liability

For dealers that also provide service and repairs on-site, garage liability is an optional policy that can protect your business from issues related to those activities. For instance, if a car suffers damage while in your garage, or an accident in your repair shop harms the facility, this policy would cover related costs.

If you’re looking for additional guidance on business insurance, contact Farmers Insurance Group. We serve families and businesses throughout Mountain Grove, MO, and the surrounding communities. Our team of insurance specialists can help you determine the policies you need at the most affordable prices available. From auto and life insurance to health insurance and prescription plans, we are your one-stop-shop for all the coverage you need. Call (417) 926-7900 to request a quote.