Motorcycle dealers typically retail new or used motorcycles, as well as motorcycle parts, apparel, and gear. In addition to selling new and used motorcycles, these dealers also often provide motorcycle servicing and repairs.
Motorcycle dealers face significant business risks. 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 motorcycle dealer insurance that covers your unique risks and fits your budget.
Why Do You Need Motorcycle Dealer Insurance?
Motorcycle dealers face numerous property and liability risks that can be covered with customized business insurance policies.
First, you likely own or lease 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.
Damaged motorcycle inventory can occur in any number of ways, from windstorms and hail that damage motorcycles that are 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 motorcycle is damaged in a hailstorm, chances are every vehicle on your lot has sustained damage.
Motorcycle dealers also face a variety of unique liability risks associated test drives, faulty repairs, malfunctioning products, and damage to customers’ motorcycles that are being kept on your premises for repairs.
What Does Motorcycle Dealer Insurance Cover?
The following are some basic business insurance policies that you will likely need, in addition to specialty policies and endorsements tailored for motorcycle dealers.
- Commercial general liability (CGL) insurance: This 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: This provides protection for your business property, including building(s) and their contents.
- Business interruption coverage: This 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: This covers employee theft and crime.
- Dealer physical damage coverage/dealer’s open lot coverage: This covers your inventory, or motorcycles held for sale.
- Garagekeepers liability coverage: This covers customers’ motorcycles in your care, custody, and control (e.g., for repairs).
- Workers’ compensation insurance: This protects employees who are injured on the job.
What Does Motorcycle Dealer Insurance Cost?
Motorcycle dealers need a customized mix of property and liability insurance to ensure that there are no gaps in coverage. The cost to cover your motorcycle 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), your motorcycle inventory, and all of your other physical assets
- The types of coverage and the coverage limits that you require
- The crime and weather risk 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 motorcycle 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-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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