Auto dealerships, especially those that are franchised, need to have a number of insurance policies in place in order to not only protect the dealership but also the employees and customers. In a business where the inventory is expensive and reputation is critical, all it takes is one minor incident to flip public opinion to a negative note, leaving your business hurting.
Thankfully, there are some ways to rectify the situation. Here are four things that you’ll definitely want to consider.
Most of Your Inventory Sits Outside Unprotected
One of the key issues that auto franchises deal with is the fact that their inventory is pricey and right out in the open. A building large enough to hold hundreds of vehicles would be very expensive, leaving dealers with few other options than to use their paved lots. What happens when a storm hits and damages those cars? What if they get stolen in the middle of the night? Dealer’s open lot insurance provides the protection that you need on the vehicles that make up your inventory.
Your Employees Need Coverage, Too
Franchises tend to have a lot of employees. On top of salespeople and loan experts, there are also mechanics, vehicle detailers, and more. With so many people on staff, you need to have the right insurance policies in place. These include workers’ compensation, which kicks in when an employee is hurt on the job. There are also liability insurance options, like garage insurance, to cover the work that the mechanics complete. Finally, errors and omissions insurance, which helps loan employees who might have made a mistake, rounds out the policies.
Your Computer System Might Be At Risk
Hackers go after both large and small companies these days. Believing that your auto franchise is safe because it’s small only leaves you open to cybercrime. You need to have a solid series of protections in place for your database and computer system, as well as cyber liability insurance to help pay for costs should you get hacked. The policy can cover things like public relations, offering credit monitoring to exposed customers, and even getting your system back up and running again, only more securely this time.
The Right Bonds and Insurance Policies Protect Your Customers
What happens when you accidentally sell a car that’s a lemon? Or one that you find out later doesn’t have a clear title? Obviously, your customers are going to be upset and your dealership needs to find a way to make it right without having to pay a lot of money out of pocket. In the court of public opinion, this could be what makes or breaks your business. Thankfully, you have surety bonds in place for each franchise and have an errors and omissions insurance policy, right?
Have Questions? Contact Charlotte Insurance
Want to learn more about the various insurance policies available to franchised auto dealerships? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.