Simmy Hundal
Insurance for Auto Dealers
Updated: Jan 27, 2022
Auto Dealerships have dynamic businesses with a number of exposures. On top of the traditional risks of a business owner such as slip and fall exposures and employee injuries, car dealership owners have the added risk of getting into a car accident, the lot inventory being damaged by inclement weather, and an error or omission in the sale of a vehicle. In this blog, we'll highlight a few types of insurance coverage that auto dealerships should consider to protect their businesses.

Types of Insurance for Auto Dealers
There are 3 main varieties of Insurance Products for Auto or Truck Dealers:

Dealer Insurance Policy
The Dealer Insurance Policy covers a broad set of exposures, including:
Commercial Auto - Coverage while actively driving vehicles for work
Inventory or Lot - Property Coverage for vehicles when parked on Premises
Premises Liability - bodily injury and property damage liability coverage
Building - Building Structures Coverage
Errors & Omissions - Misleading or Misrepresenting characteristics of vehicles

Workers Compensation Policy
Workers Compensation for Auto Dealers is similar to that of other businesses: it covers the medical expenses and loss of pay of employees that are injured on the job.
Motor Vehicle Surety Bond

Bonds that Car Dealerships are required to carry protect your customers and vendors in the event that you have operated in bad faith in regards to paying bills or transferring titles. Your customers and vendors have the right file claims against your bond. States tend to mandate this coverage; for example, Texas requires that GDRs (Auto Dealers) carry a $50,000 Bond.
Which Insurance Carrier should I use?
There are a number of carriers that offer insurance products for Auto Dealers. Please see the table below for a list of carriers that Fenix Risk Management is appointed with and the carriers' appetite for insurance the exposures listed above
Auto Dealerships are challenging businesses to operate. This is reflected in the insurance premium associated with such policies, the minimum packages usually starting at $2,000/year. Contact us today to get started protecting your business.
... the minimum [insurance packages for auto dealers] usually start at $2,000/year ...

Fenix Risk Management is an independent insurance agency serving families & businesses in GA, AL, NC, SC, TN, FL, KY, NJ, TX, VA, & AZ.
Simmy is an adviser at Fenix helping businesses and individuals navigate their insurance portfolios.
Note: the opinions expressed in this blog are that of the author, not of any other individual or organization. Discuss insurance details with a trusted adviser as this blog is unspecific to your coverage.