Connect coverage to the actual operation
A franchised dealership may combine new and used sales, service bays, parts, body work, loaners, demonstrators, EV equipment, advertising, and property-improvement obligations at one or several locations.
Risks to review
- Large vehicle inventory and catastrophe concentration
- Service, repair, parts, and customer-vehicle exposure
- Franchise facility standards and business interruption
- Employment, cyber, crime, and umbrella severity
Information to prepare
- Manufacturer agreements and insurance requirements
- New, used, loaner, demonstrator, and company vehicle schedules
- Buildings, signs, equipment, parts, income, and renovation values
- Sales, service, body shop, employee, and cyber controls
Frequently asked questions
Why should franchise requirements be reviewed with the policy?
Manufacturer or lender agreements may contain limits, property, business income, deductible, or other requirements that need to be compared with actual policy terms.
Should loaners and demonstrators be identified separately?
Yes. Ownership, use, driver eligibility, physical damage, and liability can differ from inventory held strictly for sale.
Coverage descriptions are general. Eligibility, availability, limits, deductibles, valuation, exclusions, and policy terms vary by operation and insurance market. Actual policy documents control.