ATV dealers typically retail new or used ATVs as well as other types of power sport vehicles including motorcycles, personal watercraft, and snowmobiles. In addition to selling new and used ATVs, these dealers also often provide ATV servicing and repair and may sell ATV parts and accessories.
ATV dealers face tough competition and a variety of exposures that can make staying in business a challenge. An adverse event can occur at any time, and you must invest in business insurance in order to protect your assets and keep the doors open for the long term.
A local independent insurance agent can help you get ATV dealer insurance that covers your unique risks and fits your budget.
Why Do You Need ATV Dealer Insurance?
Like most businesses, ATV dealers usually have a building that needs to be protected with insurance. In addition, you face property risks associated with your inventory and your interaction with the general public.
Property damage to your inventory can occur in any number of ways, from windstorms and hail that damage ATVs kept outside to vandalism and customers simply touching and testing the vehicles in your showroom or on your lot. Weather is one of the more serious concerns for your inventory. If one vehicle is damaged in a hailstorm, chances are every vehicle on your lot has sustained some damage.
ATV dealers also face a variety of unique liability risks associated with activities that take place at your business and with your product:
- Test-drives: Customers who test-drive ATVs pose a great threat to themselves and others.
- Faulty repairs: If you or your employees cause damage to someone else’s ATV that is in your possession or perform a faulty repair that leads to injury or death, you can be held liable.
- Catastrophic events: Fire, smoke, or other catastrophic events can damage ATVs that are owned by others but are in your possession (e.g., for repairs). You could be held liable for property damage to other people’s property that is in your care.
- Product liability: A faulty ATV or part that you sell can cause property damage or injure someone. You can be held liable in these cases.
What Does ATV Dealer Insurance Cover?
ATV dealers looking to find appropriate business insurance coverage should work with a knowledgeable agent who specializes in their line of work. The right agent can find individual and packaged ATV dealer insurance policies that will address the various forms of property and liability risk inherent in your business.
The following are some basic business insurance policies that you will likely need, in addition to specialty policies and endorsements tailored to ATV dealers.
- Commercial general liability (CGL) insurance provides broad coverage for bodily injury and property damage caused by you or your employees. CGL insurance also covers claims related to slander, libel, and advertising liability. What’s more, CGL policies cover losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a product. In some instances, product liability insurance may also cover the manufacturer or seller of the product for defective design and “failure to warn.”
- Commercial property insurance provides protection for your commercial property including building(s) and contents.
- Business interruption coverage provides coverage for lost income and expenses if you must temporarily cease operations after a catastrophic event. It pays employee salaries, rent, and other expenses while you are closed to make repairs.
You will also likely need the following types of coverage, and others, depending on your needs and the specifics of your business:
- Employee dishonesty coverage covers employee theft and crime.
- Dealer physical damage coverage/dealer’s open lot coverage: covers your inventory, or ATVs held for sale.
- Garagekeepers liability coverage covers customers’ ATVs in your care, custody, and control (e.g., for repairs).
- Worker’s compensation insurance protects employees who are injured on the job.
What Does ATV Dealer Insurance Cost?
ATV dealers need a customized mix of property and liability insurance to ensure that there are no gaps in coverage. The cost to cover your ATV dealership with a comprehensive business insurance program will vary depending on:
- The size of your business
- Your location
- The number of employees you have
- The products and services you provide
- The value of your commercial property, including your building (if you own it) and all of its contents
- The types of coverage and the coverage limits that you require
- The crime and weather risks in your city
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies, so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right ATV dealer insurance. They’ll walk you through the handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost savings opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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