"Drive Sales. Not Risk."
Protecting inventory, customers, and dealership operations
Car dealerships face unique risks involving vehicle inventory, customer test drives, employee activity, and daily interaction with the public. Whether operating a new car dealership, used car lot, or multi-location auto sales business, exposures can arise from accidents, property damage, theft, or liability claims. Even a single incident involving a vehicle, customer, or employee can lead to costly losses.
Properly structured insurance helps protect your inventory, your property, and the long-term stability of your dealership.
Key Risks in Car Dealership Operations
Dealerships face exposure related to:
Damage to vehicle inventory
Customer accidents during test drives
Garage liability claims
Employee injuries
Theft or vandalism
Property damage to the lot or building
Contract and lender requirements
Losses can occur even in well-managed dealerships.
Core Coverages for Car Dealerships
Dealership insurance programs typically include:
Garage Liability — Protects against bodily injury and property damage claims related to dealership operations.
Garagekeepers Coverage — Protects customer vehicles while in your care, custody, or control.
Dealer Open Lot / Inventory Coverage — Covers vehicles held for sale against damage, theft, or certain physical loss.
Commercial Property — Covers buildings, offices, and equipment against covered loss.
Workers Compensation — Provides coverage for employee injuries as required by law.
Commercial Auto — Covers dealership-owned vehicles used for business purposes.
Umbrella / Excess Liability — Provides additional limits for severe or multi-claim situations.
What’s Commonly Overlooked
Dealership insurance programs are often weakened by:
Underinsured vehicle inventory
Missing test drive coverage
Inadequate liability limits
No coverage for weather damage
Gaps between garage and auto coverage
Failure to update inventory values
These issues often appear only after a claim occurs.
Real-World Claim Examples
A customer crashes during a test drive
Hail damages multiple vehicles on the lot
A fire damages the showroom
A customer is injured on the property
A vehicle is stolen overnight
Even one loss can result in significant financial impact.
Why Proper Placement Matters
Dealership coverage varies based on:
Number of vehicles in inventory
Type of vehicles sold
Test drive exposure
Lot size and location
Lender requirements
State regulations
Improper placement can lead to uncovered losses or contract issues.
Our Approach
At Cory Washington & Co., we structure dealership insurance programs based on your inventory value, lot exposure, and daily operations. We coordinate garage liability, inventory, property, and excess coverage to ensure your business is protected from the real risks of selling and servicing vehicles.
When your business depends on inventory, protection must keep up with it.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.