Automotive battery dealers sell batteries for a variety of applications including:
- Commercial trucking
- Golf carts and other electric vehicles
- Power sports
- Lawn and garden
All of these applications are unique and are represented by batteries from a variety of manufacturers and in a variety of types, technologies, and classifications.
If you’re an automotive battery dealer, you probably sell automotive batteries from a brick-and-mortar location as well as online. You need business insurance that covers basic property and liability concerns, as well as other automotive battery dealer insurance policies that customized to your unique needs. An independent insurance agent can help you get the coverage you need.
Why Do You Need Automotive Battery Dealer Insurance?
Automotive battery dealers must invest in insurance policies to protect their business assets from the following potential risks:
- Accidents, such as trips and falls in the store or parking lot
- Shopping carts or store fixtures causing injury or property damage in the store or parking lot
- Damage to your inventory due to some catastrophic or unexpected event (fire, smoke, weather, vandalism, etc.)
- Loss of income due to a catastrophic or unexpected event
- Equipment damage
- Employee theft of cash or inventory
- Delivery drivers involved in automobile accidents
- Selling faulty products
- Employee lawsuits related to discrimination or other claims
- Cyber breaches
What Does Automotive Battery Dealer Insurance Cover?
Automotive battery dealers need several business insurance policies, starting with basic liability and property insurance.
- Commercial general liability (CGL) insurance is critical for any retailer, including automotive battery dealers. It protects you from costs related to bodily injury or property damage that you or your employees cause to third parties. CGL policies also cover your defense costs, court costs, and court-ordered judgments that you must pay.
- Commercial property insurance is essential for proprietors who own their buildings or whose business handles a large volume of expensive inventory. Business property insurance protects you if a fire, vandalism, smoke, theft, or other type of event damages your property. It provides coverage for lost inventory, office equipment, computers, and more.
Automotive battery dealers must pay particular attention to the valuation of their business property, especially inventory, since it may fluctuate seasonally.
- Commercial property insurance policies usually include business interruption coverage, or business income coverage, which protects your earnings if your business is unable to operate because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown). This coverage is usually quite affordable and will be invaluable if you are forced to close your doors for a some time in order to make repairs. It pays for rent, employee salaries, lost income, relocation fees, and more.
You can expand your business income policy to include coverage for breakdowns in utility services (water, electrical) that force you to temporarily close your doors.
- Does your automotive battery dealership deliver? If so, you need commercial auto insurance. Business auto insurance covers your company’s vehicles and drivers (cars, SUVs, vans and trucks) that are damaged or injured in a collision or some other type of event. If you or your employees drive personal vehicles for business purposes, you must have non-owned or hired auto liability coverage to protect your company if an employee is an accident while out making deliveries.
The Importance of Product Liability Coverage for Automotive Battery Dealers
Automotive battery dealers sell products to the general public. The products you sell are placed in vehicles that are driven on public roads or used in construction, industry, boating, and numerous other ways in the presence of other vehicles, pedestrians, and other types of property. If a battery is faulty and leads to injury or death of a driver, passenger, or bystander, your business could be held liable.
What’s more, automotive batteries can be more dangerous than other run-of-the-mill auto parts. Anyone installing , storing, or working on or near an automotive battery is at risk for face and eye injuries, burns, and even explosions. Most automotive batteries come with warnings for the consumer, but if user instructions or warnings are wrong or insufficient, you have an increased risk of being sued if someone is injured.
Product liability insurance covers a business’s financial responsibility for losses or injuries to a user, buyer or bystander caused by a defect or malfunction of the product. In some instances, product liability insurance may also cover the manufacturer or seller of the product for defective design and “failure to warn.”
Claims against companies for product-related damages are usually related to manufacturing or production flaws, design defects, or defective warnings or instructions. Claimants may be awarded payouts for medical costs, compensatory damages, economic damages, attorney fees and court costs, and even punitive damages. Consider the impact these costs would have on your business if you did not have insurance coverage. “Devastating” is the only appropriate description.
It is not just manufacturers who need product liability insurance. Any company that participated in bringing the faulty product to market can be included in a lawsuit and held liable for damage to the user. Because you sell potentially dangerous products to the public, you need some type of product liability coverage.
Product liability coverage is usually included in standard commercial general liability (CGL) policies, but never assume that the coverage is sufficient. What’s more, CGL policies will probably only cover part of the potential damages that you could be held responsible for (e.g., coverage is only for economic damages, but not punitive damages).
Keep in mind that some products come with more potential exposures to liability claims than others, and therefore the amount of product liability insurance needed by your business will depend upon the products you sell, the volume of sales, and where your organization fits in the chain of commerce (manufacturer, wholesaler, retailer, etc.).
Be sure to discuss your product liability exposures with an independent insurance agent to make sure that you have adequate protection.
What Is Employee Theft and Crime Coverage?
Employee theft and crime coverage can protect your business from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees. While it may be difficult for you to imagine, employees all too often steal property, money, and securities owned by their employers.
Employee dishonesty coverage can be purchased as a stand-alone policy or as an endorsement on other business insurance policies. A basic stand-alone employee theft and crime policy provides coverage for forgery, alteration, theft, unauthorized electronic fund transfers, credit card fraud, computer fraud, money order fraud, and counterfeit fraud. You can also add endorsements for additional coverage.
Other Insurance Policies for Automotive Battery Dealers
In addition to the coverage types described above, automotive battery dealers will want to consider some of the following types of business insurance. Whether you need them depends upon your specific business needs
- Worker's compensation insurance
- Equipment breakdown/boiler and machinery coverage
- Employment practices liability coverage
- Cyber liability coverage
How Much Does Automotive Battery Dealer Insurance Cost?
The cost of automotive battery dealer insurance will vary depending on the coverage that you need, as well as your unique risks. Your location, the number of employees, the size of your store, and what you sell play a role in how much it will cost to insure your store.
The more risk exposures you have (more employees, more than one location, more valuable inventory, several business-owned vehicles, online sales, etc.) the more you can expect to pay.
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
Independent insurance agents simplify the search process for finding the right automotive battery dealer insurance. They’ll walk you through some 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 leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving 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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