Auto Dealer Garage Liability Insurance:
For the person who owns a car dealership or anyone who is operating an automotive repair shop, we recommend a garage liability and dealer’s open lot DOL insurance policy. ABC Insurance Services recognizes the importance of having the proper level of liability and property insurance protection for your dealership. We represent carriers with whom we have direct appointments and we maintain relationships with other Garage Liability Insurance carriers so that we can often provide multiple sources to quote this important coverage. Most Texas Auto Dealer Garage Insurance rates start from $1190/Year depend on the city the dealership is located and number of employees to be covered.
Two types of operations eligible for garage liability:
1. Dealers - a person or firm engaged in the commercial purchase and sale id autos.
2. Non-Dealers – Business operation engaged in repairing, servicing non-owned autos.
Garage liability coverage is the broad liability insuring agreement provides bodily injury and property damage liability coverage similar to that provided by the commercial general liability policy and the business auto policy. The policy agreement for garage operations other than covered autos promises to pay all sums an insured legally must pay for damages because of bodily injury or property damage when caused by an accident and resulting from garage operations other than the ownership maintenance or use of covered autos. The garage policy provides liability coverage for products that are produced or sold in a garage business. Within the policy is a completed operations coverage which would be applicable in the event that resulted from property damage to an auto as the direct result of any work the insured performed on that auto.
It is necessary that every employee and officer of your company must be listed on your garage policy, whether or not they drive a company vehicle. This list should include managers, salespersons, mechanics, lot boys, runners, detailer and office clerical personnel. At ABC Insurance Services, we need to be aware of the job classification and full or part time status of each person. Employees with faulty driving records (ie, tickets, suspensions, etc) may cause your policy to be cancelled or not renewed. In some cases, the carrier may choose to charge you a higher premium perhaps they may suggest that you exclude a specific driver from your coverage policy. If a particular driver is excluded, you must be diligent in not allowing him/her to drive any of your vehicles.
In most cases, they will choose to refuse to cover a dealership that has even one owner or employee with accidents, dwi conviction on their driving record. In any event, the price will be much higher when such convictions are discovered.
List of What Dealer Open Lot (DOL) Floor Plan covers?
- Comprehensive: Provides coverage to a covered vehicle or equipment attached from any cause of loss except collision with another object or overturn.
- Specified Causes: Provides coverage to a covered vehicle or its equipment caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or the sinking, burning or derailment of any conveyance transporting the covered vehicles.
- Fire and Theft: Grants coverage to a covered vehicle or its equipment caused by fire, lightning, explosion or theft.
- Collision: loss or damage to a covered auto caused by collision with another object
- False Pretense: Optional Coverage, Provides coverage to a covered vehicle caused by someone who causes the dealer to voluntarily part with a covered vehicle by trickery, scheming, or under false pretenses. For example, if you allow an unaccompanied test drive, and the driver does not return back to the lot, this is considered a false pretense claim. In most cases, policies exclude false pretense and you have to buy back the coverage.