The automotive industry in the U.S. stands as a massive market for both sales and production, supported by a vast network of franchised and independent auto dealers. These dealerships hold significant value in assets, primarily their vehicle inventory, making them vulnerable to a wide array of risks. Therefore, robust Car Dealership Insurance Programs are not just beneficial but essential for protecting these businesses from potential financial losses.
Recognizing these specific needs, programs like DealerGuard, from Amwins Program Underwriters, have been developed to offer specialized insurance solutions for over 30 years. DealerGuard focuses on providing open lot physical damage coverage, a critical aspect of car dealership insurance programs, for franchised and large independent auto dealers, dealer associations, and finance company floor plans. With expertise in handling specialty and high-value inventory, DealerGuard ensures efficient claims processing through its in-house team, setting a standard for prompt and reliable service in the industry.
Tailored Coverage for Diverse Dealership Needs
Car dealership insurance programs must be adaptable to the varied operations within the automotive sector. DealerGuard is designed to cater to franchised automobile dealers whose operations typically include the sale of new and used vehicles, along with associated services such as vehicle maintenance and repair. This targeted approach ensures that the coverage aligns precisely with the operational risks these dealerships face daily.
However, it’s important to note that certain types of businesses may fall outside the scope of standard car dealership insurance programs like DealerGuard. For instance, auto rental operations, including daily or weekly rentals, and boat dealers are generally not eligible under this program, highlighting the specialized nature of DealerGuard’s focus on vehicle sales and inventory protection.
Key Coverage Components of Car Dealership Insurance Programs
A comprehensive car dealership insurance program should offer a range of coverages to address the various exposures dealers face. DealerGuard provides several critical components:
- Dealer’s Open Lot Coverage: This core coverage is available in conjunction with manufacturer and floor plan coverage and can also be provided for “non-floored only” inventory when necessary. It’s designed to protect the substantial inventory parked in open lots, vulnerable to weather, theft, and damage. Inventory protection extends to motorcycle and bus dealers, broadening its applicability within the vehicle sales sector.
- Parametric Hail Coverage: In regions prone to severe weather, particularly hail, DealerGuard offers a parametric option. This innovative approach provides swift payouts based on pre-defined hail parameters, ensuring quick financial relief and recovery after a hail event.
- Pollution and Underground Storage Tanks Coverage: Recognizing environmental liabilities, DealerGuard includes coverage for pollution and underground storage tanks, addressing potential risks associated with fuel storage and environmental regulations.
Loss Control and Claim Management Expertise
Effective car dealership insurance programs go beyond just coverage; they incorporate proactive loss control and efficient claim management. DealerGuard excels in both areas. With over 30 years of experience in handling claims specifically related to auto dealer open lots, their expertise is unmatched. They offer retail automotive-specific loss control recommendations, drawing from a wealth of experience to advise dealers on mitigating risks such as theft and fraud. Resources are available on topics like theft prevention, trick and device awareness, and Red Flags Rule compliance, demonstrating a commitment to helping dealerships minimize losses before they occur.
Furthermore, DealerGuard distinguishes itself with its internal, local claims team. This in-house approach, boasting over 100 years of combined experience in auto dealer open lot claims, ensures a level of service and expertise rarely found with third-party administrators. This direct claims management system translates to a deeper understanding of the unique challenges faced by car dealerships and a more streamlined and effective claims resolution process.
In conclusion, car dealership insurance programs like DealerGuard are vital for protecting auto dealers from the inherent risks of their business. By focusing on specialized coverage, proactive loss control, and expert claim management, DealerGuard provides a robust and reliable insurance solution tailored to the specific needs of the automotive dealership industry.
