Trailer dealers face a variety of exposures that can make staying in business a challenge. An adverse event can occur at any time, and trailer dealers should invest in business insurance in order to protect their assets and keep the doors open for the long term.
An independent insurance agent can help you get the trailer dealer insurance that you need.
Why Do You Need Trailer Dealer Insurance?
Trailer dealers specialize in retailing a variety of trailer types, including:
- Recreational vehicles (RVs)
- Travel trailers
- Toy haulers
- Destination trailers
- Horse trailers
- Utility trailers
- Motor homes
Trailer dealers may also offer parts and service for all of the various trailers that they sell.
Trailer dealers need business insurance for a variety of reasons. Your business insurance should address typical business risks like protecting your buildings and inventory from fire or weather damage. And you need protection from the risks associated with the general public’s presence on your premises, and any dangers related to the products that you sell.
Property Risks for Trailer Dealers
Trailer dealers likely have a building and other expensive commercial property that needs to be protected with insurance.
Property damage can occur in any number of ways, from windstorms and hail that damages inventory on an outdoor lot, to vandalism and damage that occurs when customers simply touch and test trailers that are housed in your showroom. Weather is one of the more serious concerns for your inventory. If one trailer is damaged in a hailstorm, chances are every trailer on your lot has sustained damage.
Liability Risks for RV Dealers
Trailer 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 trailers or motor homes out on public roads pose a great threat to other drivers and their vehicles. People driving or towing large, unfamiliar vehicles can be involved in an accident that results in property damage, injury, or death, and you can be held responsible.
- Faulty repairs: If you or your employees cause damage to someone else’s trailer 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 customer trailers in your possession. You could be held liable for property damage to other people’s property that is in your care.
- Product liability: A faulty part or a malfunctioning trailer that you’ve sold can cause injuries or property damage. You can be held liable in these cases.
What Does Trailer Dealer Insurance Cover?
The insurance industry has developed a special set of policies or packaged policies that are designed for trailer dealers. These policies cover your inventory, work being done on trailers in your possession, negligent or faulty work on trailers, liability for trailers out on the road, and much more.
Trailer dealers looking to find appropriate business insurance coverage must work with a knowledgeable agent who specializes in their line of work. The right agent can find individual and packaged trailer 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 trailer 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.
- Commercial property insurance: This provides protection for your business property, including building(s) and 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 trailers held for sale.
- False pretenses coverage: This protects your business if you are tricked into releasing a trailer to someone under false pretenses.
- Professional liability/errors and omissions insurance: This is for odometer, truth in lending, and title related claims.
- Garagekeepers liability coverage: This covers customers’ vehicles in your care, custody, and control (e.g., for repairs).
- Inland marine coverage: This is for vehicles in transit.
- Workers’ compensation insurance: This is to protect employees who are injured on the job.
- Product liability coverage: This is for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of the product. It may also cover the manufacturer or seller of the product for defective design and “failure to warn.”
How Much Does Trailer Dealer Insurance Cost?
Your trailer dealer insurance costs are based on a number of factors that will vary among different dealers. Your premiums depend on:
- The size of your business
- The location of your business
- How many employees you have
- The value of your inventory
- The types of trailers that you sell
- The types of additional services you provide
- The crime and weather risks in your area
An independent insurance agent can provide you with multiple proposals from reputable insurance companies who specialize in trailer dealer insurance.
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 trailer 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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