Car dealerships illuminate the vast landscapes of Kansas, reflecting the state’s rich culture of road trips and car racing. However, owning or managing a car dealership in the Sunflower State is not without risks.
From damages due to severe Midwestern storms to liabilities from unforeseen incidents during test drives, the potential financial impact of these risks could be significant. That’s where the importance of insurance comes into play. By mitigating these inherent risks, insurance becomes an indispensable safeguard for car dealerships, allowing them to operate confidently and securely in the dynamic Kansas car market.
We Have the Best Car Dealership Insurance Plans in Kansas
At Winn Insurance Group, we understand the importance of having quality commercial insurance coverage when you’re running a car dealership business. That’s why we provide comprehensive plans that cover all aspects of your dealership operations, including property damage, premises liability, product protection, and more. Plus, our team of experienced agents will work with you to create custom insurance solutions tailored specifically for Kansas car dealerships.
Fill out our online contact form or call us today to get started. Let us show you why we’re the trusted car dealership insurance provider in Kansas.
Who Is Car Dealership Insurance Meant For?
Car dealership insurance is meant for a wide array of businesses involved in the automobile industry.. This insurance is not limited to just car dealerships but extends to a wide variety of businesses that interact with automobiles in various capacities. Here are some businesses that can immensely benefit from this type of insurance coverage:
- New Car Dealerships
- Used Car Dealerships
- Motorcycle Dealerships
- Recreational Vehicle (RV) Dealerships
- Commercial Truck Dealerships
- Auto Parts Stores
- Vehicle Service and Repair Shops
- Tire Retailers and Service Providers
- Auto Body and Collision Repair Shops
- Car Rental Agencies
- Towing Companies
- Automotive Detailing Services
- Vehicle Customization Shops
- Car Wash Facilities
- Vehicle Inspection Services
No matter the nature of your business in the automotive sector, having a robust insurance plan can provide you with peace of mind, allowing you to focus on delivering excellent service to your customers.
Garage Liability Insurance for Kansas Auto Dealerships
Garage Liability Insurance is a vital component of car dealership insurance. This policy covers liability claims resulting from accidents that occur in the course of your garage operations. It primarily encompasses bodily injury and property damage that could occur on your premises or involving vehicles owned by the dealership.
However, it’s crucial to note that Garage Liability Insurance does not cover damages to the vehicles you’re selling or servicing—this would fall under a separate policy known as Garage keepers Liability Insurance. For a comprehensive insurance plan, a combination of both policies can help ensure your dealership is fully protected against a range of potential risks.
Kansas Garage Keepers Liability Insurance
Garagekeepers Liability Insurance is particularly tailored to address the unique risks associated with vehicles owned by a third party but stored or serviced at your location. This type of insurance provides coverage if a customer’s vehicle is damaged due to fire, theft, vandalism, or collision while it’s in your care, custody, or control. It’s an indispensable policy for auto service providers, repair shops, and dealerships where customer vehicles are routinely left on the premises.
It’s important to note that Garagekeepers Liability Insurance does not cover injury or damage to the cars you own—for this, you need a special type of policy known as Dealer Open Lot Coverage. This covers vehicles owned by the dealership while they’re on public roads and ensures your fleet is protected against a range of potential risks.
Dealer Open Lot Coverage
Dealer Open Lot Coverage is designed for auto dealerships that need protection while their vehicles are in transit or on public roads. This policy provides coverage for physical damage to the dealership’s own fleet caused by collision, overturning, fire, theft, and other perils. It’s a vital part of any comprehensive insurance portfolio and can help ensure your dealership is properly protected.
In addition to the standard coverage provided by Dealer Open Lot Coverage, you can also choose to add on optional endorsements such as theft or glass etching that provide additional protection for your fleet. With these endorsements, your vehicles will be further safeguarded against unexpected losses and costly repairs.
Workers Compensation Insurance
The state of Kansas requires auto dealerships with one or more employees to carry Worker’s Compensation Insurance. This type of insurance covers the medical costs and lost wages of employees who are injured on the job. It also protects employers from legal action that may be taken against them if an employee is injured while working for them.
Workers’ Compensation Insurance can also provide coverage for job-related illnesses and disabilities, as well as funeral expenses if a worker dies on the job. Having this policy in place ensures that your business is compliant with state regulations and provides financial protection to employees in the event of an accident or injury.
General Liability Insurance for Kansas Auto Dealerships
General Liability Insurance is an important insurance policy for all auto dealerships in Kansas. This coverage protects you from claims of bodily injury or property damage caused by your business operations, products, and services. It also covers the cost of defending yourself against any legal action taken by someone injured as a result of your dealership’s activities.
Having General Liability Insurance for your dealership also provides peace of mind to customers that their vehicles are in good hands. If a customer experiences an accident or damages from one of your services, the policy will cover the costs associated with it and keep them safe from financial liability.
Kansas Auto Dealership Property Insurance
Kansas auto dealerships should also carry Property Insurance to protect their building and the physical assets inside. This type of policy will cover losses from fire, theft, vandalism, and other similar forms of damage. Additionally, it will provide compensation for any damaged or stolen vehicles on the lot.
Property insurance also provides coverage for any lost income or extra expenses that may be incurred after the event, such as lost rental income if the dealership has to temporarily close due to damages.
Business Interruption Insurance
You’ve probably heard the saying ‘time is money’ and this certainly applies to auto dealerships. If your business experiences a disruption due to an event like a fire or storm, you could potentially lose out on income from sales or service jobs that would have been completed during that time.
Business Interruption Insurance helps cover lost revenue resulting from unavoidable disruptions caused by external events. It also provides coverage for extra expenses incurred while your dealership is closed, such as the cost of relocating to a temporary facility.
Commercial Auto Insurance
Your auto dealership should also carry Commercial Auto Insurance to protect any vehicles used for business purposes. This type of policy covers damages from accidents and collisions as well as theft, vandalism, and other similar forms of damage. It will provide compensation for repairs or replacement of the damaged vehicle(s).
Commercial auto insurance also provides coverage if you or one of your employees is involved in an accident while driving a business vehicle. It will cover medical expenses, legal fees, and other associated costs. The minimum auto liability limit in Kansas is 25/50/25, which means it will provide a minimum of $25,000 per person ($50,000 total for all people involved) and $25,000 for property damage.
Equipment Breakdown Insurance
Your Kansas auto dealership relies on a lot of equipment to stay operational. Everything from diagnostic tools and lifts to computers and printers can break down, leading to costly repairs or replacement. Equipment Breakdown Insurance covers the cost of damage due to mechanical or electrical breakdowns as well as shortages caused by power surges. It also helps cover any additional expenses related to repairing the damaged equipment, such as downtime or rental of a backup device.
Crime Insurance
Crime Insurance is often overlooked but can be invaluable to your auto dealership. This policy covers losses due to theft, vandalism, and employee dishonesty. It’s particularly important in Kansas since the crime rate is higher than the national average. With Crime Insurance, you’re covered against financial losses from these types of crimes as well as legal expenses associated with defending yourself against criminal investigations.
Errors and Omissions Insurance
Errors and omissions insurance (also known as professional liability insurance) is essential for any business that offers advice to its customers, such as an auto dealership. This type of policy covers mistakes or negligence in the advice you provide to your customers, protecting you from costly lawsuits. For example, if you incorrectly advise a customer on the best financing option for their vehicle purchase, your E&O policy will help cover any losses incurred by the customer. It’s important to note that E&O insurance is not available in Kansas and must be purchased through a separate insurer.
Get a Custom Insurance Quote for Your Kansas Car Dealership
Don’t leave your business exposed to unforeseen risks. Take the initiative, secure the future of your dealership today with Winn Insurance Group, an independent insurance agency that understands your unique needs. We offer comprehensive and competitive insurance plans tailored specifically for car dealerships in Kansas. Connect with us today and explore the best deals that will ensure your peace of mind.