Why this review matters
A dealership combines inventory, road use, repair operations, customer property, employees, contracts, and digital transactions. The insurance review should distinguish those exposures instead of treating the dealership as a standard retail location.
Information to prepare
- Inventory values by location and expected seasonal peaks
- Dealer plates, owned vehicles, drivers, and test-drive controls
- Service, body shop, towing, loaner, and valet activities
- Customer-vehicle values and garagekeepers procedures
- Loss history, key controls, camera systems, and cyber safeguards
Decisions to discuss
- Dealer open lot limits and catastrophe exposure
- Garage liability versus garagekeepers responsibilities
- Physical damage options for inventory and company vehicles
- Crime, cyber, employment practices, and umbrella protection
Common pitfalls
- Using an average inventory value when peaks are materially higher
- Failing to disclose off-site storage or secondary lots
- Confusing garage liability with damage to customer vehicles
- Overlooking social-engineering and funds-transfer risk
Frequently asked questions
What is dealers open lot coverage?
It is designed to address physical damage to vehicles held for sale, subject to the selected causes of loss, limits, deductibles, and policy terms.
What does garagekeepers coverage address?
It can respond to covered damage to customers’ vehicles in the dealership’s care, custody, or control, depending on the coverage form selected.
Coverage descriptions are general. Availability, eligibility, limits, exclusions, and policy terms vary. Review actual policy documents and requirements with an appropriate insurance professional.