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Dealer InsuranceDealer insurance is a specialized type of business insurance that covers many facets of owning and operating a car dealership. Dealer insurance is designed to cover the test-driving of vehicles owned by the dealership, employees driving vehicles owned by the dealership, and the many potential calamities that could occur at the car dealership. Dealer insurance encompasses many other specific types of coverage, including:

• Dealer’s Open Lot Insurance: This insurance offers coverage for the vehicles on a car dealership’s lot that are for sale. Further, this covers vehicles that may become damaged in a wreck or collision and can apply when a car is driven by an employee and/or by customers test-driving it. Dealer’s open lot insurance will also cover the dealership’s losses in certain cases of theft.
• Garage Keeper’s Insurance: This type of coverage insures vehicles owned by a customer leaving their vehicle for repairs against unexpected property damage. This includes coverage for fire damage, theft, vandalism, extreme weather, and collision damage that might occur on the dealership’s premises.
• Garage Liability Insurance: Often used interchangeably with garage keeper’s liability insurance, garage liability insurance provides a different form of protection for franchised auto dealers and related businesses. This specific policy offers coverage for bodily injury and property damage caused by an accident that occurred on the dealership’s premises.