Dealers Open Lot

Coverage for dealer’s covered vehicles and equipment
Coverage for Your Inventory . What does dealers open lot cover?

• Comprehensive: Coverage for any cause of loss except collision with another object or overturn.
• Specified Causes : Coverage caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or the sinking, burning or derailments of any conveyance transporting covered vehicles.
• Fire and Theft : Coverage to a covered auto/vehicle or its equipment caused by fire, lightning, explosion or theft.
• Collision : Coverage for loss or damage caused by its collision with another object or overturn.
• False Pretense : Coverage for voluntarily parting with covered vehicles (loss) by trick or scheme. For instance, allowing an unaccompanied test drive; driver does not come back—this is a false pretense claim. Most policies exclude false pretense and you have to ‘buy back’ this coverage.
• In-transit: Coverage for vehicles off premises—an auto auction, repair facility, etc.

OTHER DEALERS COVERAGE GENERALLY AVAILABLE

1. Employee dishonesty
2. Money and securities
3. Forgery and Alteration
4. Personal and Advertising Injury
5. Medical Payments
6. Uninsured/ Underinsured Motorist
7. Personal Injury Protection
8. Non-Owned Vehicle
9. Umbrella
10. Errors and Omissions
11. Truth in Lending / Leasing Liability
12. Federal Odometer/Prior Damage Disclosure Liability
13. Title Errors / Omissions (negligence)
14. Product-Related Damages (faulty work)
15. Dealership Insurance Agent’s Errors and Omissions

Typical Underwriting Criteria

1. Prior insurance company and loss history — typically 3 to 5 previous years
2. Number of years in business or previous experience if a new dealership.
3. Length of time at the location
4. Lot Protection and Appearance
5. Driving records (MVR’s) — all employees whether 1099 or W-2. NOTE: Many garage policies exclude losses incurred by anyone under the age of 21
6. Valuation — average/maximum — of vehicles held in inventory/for customers.
7. Number of vehicles sold annually
8. Have you ever been cancelled for non-payment of premium?
9. Business Operations — what steps has the dealer taken to protect his property, building and contents?

State laws vary as do the offerings of various insurance companies so not every insurance company will offer every coverage described herein.  That’s why it is important to work with Jordan & Jordan Insurance Agency to assure that your coverage addresses your specific risk exposures. We are familiar with what it takes to get a quality insurance quote for your business needs.

Limits: Typically, you will find only a small dollar difference between a $500,000 and a $1,000,000 limit.

To get started Fill-out a contact form or call 1-866-604-5635 and /or email info@jordanjordaninsurance.com