CAR DEALERSHIP

Car Dealership Insurance

Protecting inventory, customers, and dealership operations

Car dealerships operate at the intersection of vehicle inventory, customer interaction, financing activities, and regulatory compliance. From test drives and service operations to employee practices and theft exposure, dealerships face layered and high-value risks every day.

A properly structured insurance program is essential to protecting assets, reputation, and long-term profitability.

Key Risks in Car Dealership Operations

Car dealerships face exposure related to:

• Bodily injury or property damage during test drives

• Damage to or theft of vehicle inventory

• Customer claims arising from sales or service operations

• Employment practices and staffing exposure

• Financial crime and employee dishonesty

• Regulatory and lender compliance requirements

Losses can escalate quickly due to inventory values and public interaction.

Core Coverages for Car Dealerships

Dealership insurance programs typically include:

Garage Liability
Protects against bodily injury and property damage claims arising from dealership operations, including test drives.

Dealers Open Lot / Auto Inventory Coverage
Covers owned vehicles held for sale against damage or theft.

Commercial Property
Covers dealership buildings, service equipment, signage, and contents against covered losses.

Crime Insurance
Protects against theft, fraud, employee dishonesty, and financial loss.

Employment Practices Liability (EPLI)
Covers claims related to hiring, termination, discrimination, harassment, or retaliation.

What’s Commonly Overlooked

Dealership insurance programs are often weakened by:

• Underinsured vehicle inventory values

• Missing coverage for test-drive exposure

• Gaps between sales and service operations

• Inadequate crime coverage for financial transactions

• Failure to align coverage with lender requirements

These gaps often surface after thefts, accidents, or audits.

Real-World Claim Examples

• A customer causes an accident during a test drive

• Multiple vehicles are damaged in a hailstorm

• An employee commits financial fraud

• A customer slips and falls on dealership premises

Dealership claims often involve high-dollar losses and scrutiny.

Why Proper Placement Matters

Car dealership coverage varies significantly based on:

• Inventory volume and vehicle values

• Sales vs. service operation mix

• Financing and lender obligations

• Staffing levels and customer traffic

Improper placement can lead to uncovered losses or operational disruption.

Our Approach

At Cory Washington & Co., we design dealership insurance programs around real-world dealership operations — from inventory management to customer interaction and compliance obligations. Our focus is protection that supports growth, not just minimum coverage.

Strong dealerships depend on disciplined risk management.