Car dealership insurance in North Carolina

What insurance does a NC car dealership need?

Core coverages include: dealer open lot (physical damage coverage for vehicle inventory on the lot); garage liability (covering test drives, service operations, and dealer operations); commercial property (building, parts, tools); workers comp; and often employment practices liability given the sales environment. Floor plan lenders typically require specific insurance documentation.

What is dealer open lot insurance?

Dealer open lot (dealers physical damage) covers vehicle inventory against physical damage, hail, flood, fire, theft, vandalism. It is the automotive equivalent of commercial property coverage for the vehicles themselves. Limits need to reflect the peak inventory value, which fluctuates with inventory levels.

What garage liability covers at a car dealership?

Garage liability at a dealership covers bodily injury and property damage arising from dealer operations, test drives, service department work, and the general operations of the dealership. Customers driving your vehicles on test drives and dealer employees driving vehicles are covered under the garage policy.

What do floor plan lenders require from NC dealerships?

Most floor plan lenders require dealers to maintain dealer open lot coverage at specified limits, name the lender as loss payee, and provide evidence of coverage. Requirements vary by lender, review your floor plan agreement for specific insurance requirements and make sure your dealer program meets them.