Car Dealership Insurance Coverage Checklist
The coverages a car dealership business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for new and used car dealerships. Priorities reflect typical exposure; confirm against lots, service operations, and financing.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Garage Liability (incl. Auto Liability) | Covers injuries and damage from dealership operations and dealer-owned vehicles, including test drives. | Core | |
| Dealer's Physical Damage (Open Lot) | Covers inventory against hail, flood, theft, and collision — check per-unit and lot limits. | Core | |
| Garagekeepers | Covers customers' vehicles in service or storage. | Core | |
| Cyber Liability | Covers breaches, ransomware, and DMS outages — including business interruption from a vendor attack. | Core | |
| Dealer E&O (Truth in Lending, | Odometer, Title) Covers F&I and disclosure errors. | Prevalent | |
| Employment Practices Liability | Covers claims from sales and service staff. | Prevalent | |
| Crime / Employee Dishonesty | Covers theft of funds, parts, or vehicles by employees. | Prevalent |
The coverage gap most often missed
The most commonly missed gap for this class is cyber coverage for a vendor outage. The 2024 CDK Global ransomware attack shut down dealer management systems at about 15,000 dealerships for nearly two weeks, and many cyber policies cover only the insured's own systems, not a vendor's. Dealers are also financial institutions under the FTC Safeguards Rule, with a 30-day breach-notification deadline. Confirm dependent business interruption coverage and a written plan to operate without the DMS.
Send us the checklist and we'll review your car dealership coverage line by line, then market it across multiple carriers that compete for your account.
Related: Car Dealership Insurance · Car Dealership Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a car dealership business need?
The core coverages for a car dealership business are Garage Liability (incl. Auto Liability), Dealer's Physical Damage (Open Lot), Garagekeepers, Cyber Liability. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my car dealership coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.