Colorado Auto Dealer Insurance

Auto dealer insurance, also called dealership insurance or “dealer open lot insurance”, is designed to protect auto dealerships and their inventory. It is a specialized form of auto insurance, offering similar coverage options like collision, comprehensive, and liability. These options protect vehicles within the lot, and they serve as coverage for property damage or injury to a third-party while on the lot. Unlike standard auto insurance, dealership insurance may have a number of other coverage options more tailored to the unique needs of dealerships:

• Protection for the dealership’s property, such as the dealership building, office, and equipment as well as car parts and tools
• Protection for business operations, like business interruption, loss of income or employee dishonesty
• Protection for unexpected events like natural disasters Specific coverage options and limits can vary according to the insurance carrier and policy. Contact Castle Rock Insurance today with your auto dealer insurance inquiries.

There were about 709 franchised new car and truck dealerships throughout the state of Colorado in 2021 according to the National Automobile Dealers Association. The auto industry contributes greatly to the economy in Colorado, providing jobs to thousands of people and generating billions in economic activity by selling vehicles as well as offering financing, maintenance, and repair services.

The COVID-19 pandemic caused many dealerships to operate at reduced capacity or close temporarily. As many dealerships continue to reopen, some have adapted, now selling online or offering home delivery options. Auto dealers continue to have a significant role in Colorado’s economy and in its transportation infrastructure.

Auto dealer insurance is not legally required throughout the United States, but it is highly recommended as a means for dealerships to protect their assets and business operations. From property damage to liability claims and business interruptions, dealerships are exposed to various types of risk. Auto dealer policies are specialized and can help dealers recover from unexpected events, like theft, natural disasters, or lawsuits.