Motorbike dealers are part of the industry that includes motorcycle, ATV, and other motor vehicle dealers. This industry includes businesses that are primarily engaged in retailing new and/or used motorcycles, motor scooters, motorbikes, mopeds, off-road all-terrain vehicles (ATV), personal watercraft, utility trailers, and other motor vehicles (except automobiles, light trucks, recreational vehicles, and boats). Some of these businesses also repair these types of vehicles and/or sell replacement parts and accessories.
Motorbike dealers offer expertise in their product lines, but also face a variety of risks that can make staying in business challenging.
If you own a motorbike dealership, you already know that 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.
But what kinds of coverage do you need and where can you get it? A local independent insurance agent can help you get motorbike dealer insurance that covers your unique risks and fits your budget.
Why Do You Need Motorbike Dealer Insurance?
Motorbike dealers have valuable assets that need to be protected. Just like any business owner, you likely have a building that can be damaged by fire, smoke, water, wind, vandalism, and other perils. What’s more, everything inside of your dealership is susceptible to damage, theft, and even total destruction if a serious event occurs, like a fire or a tornado.
You also have a variety of liability risks, which means that business partners, customers, or members of the general public for numerous reasons can sue you. And in these situations, even if you’ve done nothing wrong, the cost to defend yourself or pay damages to an injured party can be devastating.
Property risks for motorbike dealers
Your inventory can sustain property damage in a number of ways, from windstorms and hail that damage motorbikes that are kept outside, to vandalism and customers simply touching and testing motorbikes in your showroom, in your lot, or out on the road.
Weather is one of the more serious concerns for your inventory. If one motorbike is damaged in a hailstorm, chances are every motorbike on your lot has sustained damage.
Liability risks for motorbike dealers
Motorbike dealers also face a variety of unique liability risks associated with the following activities that take place at your business and with your product.
- Test-drives: Customers who test-drive motorbikes pose a great threat to themselves and others. An accident during a test drive will not only damage your inventory, but will likely injure the driver, and may even result in property damage or injuries to bystanders.
- Faulty repairs: If you or your employees cause damage to someone else’s motorbike that is in your possession, or perform a faulty repair that leads to injury or death, you can be sued and be required to pay damages to the injured party.
- Catastrophic events: Fire, smoke, or other catastrophic events can damage motorbikes 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 motorbike or part that you sell can cause property damage or injure someone. You can be held liable in these cases.
- Slips, trips, and falls: Just like any business that invites members of the general public onto its premises, you’re susceptible to minor injury incidents caused by slips, trips, and falls in your showroom or on your lot. These incidents may be minor, but often result in lawsuits and significant payouts by the business owner.
What Does Motorbike Dealer Insurance Cover?
You can work with a local independent insurance agent to find appropriate business insurance coverage that is designed for motorbike dealers. The right agent can find individual and packaged motorbike dealer insurance policies that will address the various forms of property and liability risks that are unique to your business.
The following are some basic business insurance policies that you will likely need, in addition to specialty policies and endorsements tailored to motorbike 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 this case a motorbike or a motorbike part. 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 business property, including building(s) and their 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 after a covered event.
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 motorbikes held for sale
- Garage keepers liability coverage: Covers customers’ motorbikes in your care, custody, and control (e.g., for repairs)
- Workers’ compensation insurance: Protects employees who are injured on the job
What Does Motorbike Dealer Insurance Cost?
Motorbike dealer insurance costs will vary depending on the size of the business, the number of locations, where the business is located, the number of employees, and more.
Because you need a customized mix of property and liability insurance that is tailored to your individual business, your business insurance package may not cost the same as your competitor’s. Here are some other factors that affect your motorbike dealer insurance costs.
- The products and services you provide
- The value of your commercial property
- The value of your inventory
- The types of coverage and the coverage limits that you require
- The crime and weather risk in your city
An independent insurance agent can help you compare costs and coverage from different insurance companies.
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 motorbike 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.
Information 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-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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