Dealer Insurance 101
Garage Liability - This comprehensive policy provides liability coverage for dealers and non-dealer’s auto and premises. This policy protects the policyholder during customer test drives, transporting vehicles from auctions and the business’ employees driving autos.
Garage Keeper’s Coverage - In addition, the policy can protect vehicles that are not owned by the dealer but the dealer has care, custody or control of a customer vehicle.
- Garage Keeper Legal Liability -The insured is protected against legal Liability (negligence of the insured) for physical damage to customer’s autos left for storage, safekeeping, service or repair.
- Garage Keepers Primary - Optional coverage for claims regardless of legal liability as primary coverage.
Dealer’s Open Lot – Protects the vehicle inventory for physical damage coverage. Physical damage may include coverages such as fire, theft, collision, vandalism, and other perils.
Scheduled Vehicles – This option on a garage liability policy allows specific autos, towing vehicles or towing devices to be covered under the policy’s liability and for physical damage.
Specialized Enhancements (Optional)
Broadened Coverage – Standard policies do not provide coverage for Host liquor, Fire Legal Liability, Personal & Advertising, spouse of partners as an insured, incidental medical malpractice, automatic liability coverage for newly acquired locations, etc. This optional endorsement offers these needed broadened coverages.
False Pretense – Covers the insured when a covered automobile is taken in a fraudulent manner or acquiring an automobile from someone who did not have legal title to the vehicle.
Truth-In-Lending Errors and omissions – Protection against claims alleging a dealer did not comply with the Consumer Credit Protection Act or other similar laws. Odometer Statuses Errors and omissions – Protection against claims alleging a dealer did not comply with federal or other odometer disclosure laws.
Title Errors & Omissions – Provides coverage when a dealer is held liable for an act, error or omission in the preparation of title papers.
Insurance Agents Errors & Omissions – Needed if a dealer is involved in selling life, disability or other insurance related products in conjunction with the sale of a vehicle. This coverage provides protection against loss resulting from a dealer’s negligent acts or omissions that arise while performing such services.
Dealer Drive Away Coverage – Standard garage policies do not provide coverage if a dealer vehicle is driven more than 50 miles from the garage location. This program will allow for additional charge.
Cal-Society is a leading provider of insurance for individual, families and businesses in most states including California, Texas, Florida, Pennsylvania, Nevada, Arizona, Utah and Colorado. Our Los Angeles office employs agents licensed throughout the country. We have agents fluent in English, Spanish, Japanese, Armenian and Farsi. Give us a call today 800.773.1663.