Auto dealerships in Colorado need a variety of insurance coverages to protect against the unique risks they face. General liability insurance is essential for covering third-party bodily injury and property damage that might occur on the dealership’s premises. This insurance protects against potential lawsuits from customers or visitors who may get injured while on the property. Additionally, property insurance is crucial for safeguarding the dealership’s physical assets, including buildings, showrooms, and inventory, from risks such as fire, theft, or natural disasters.
Dealers also require garage liability insurance, which covers damages resulting from operations, such as vehicle maintenance and repairs conducted by the dealership. This type of insurance is vital for protecting against claims related to accidents that occur during test drives or while vehicles are being serviced. Dealer open lot coverage is another important policy, providing protection for the dealership’s inventory of vehicles against physical damage from events like hailstorms, which are common in Colorado.
With 709 franchised new car and truck dealerships as of 2021, the auto industry is a significant part of Colorado’s economy. Comprehensive insurance coverage is imperative to safeguard the interests of these dealerships. Coverage like business interruption insurance can help cover lost income and operating expenses if the dealership has to close temporarily due to a covered event. Cyber liability insurance is also increasingly important, protecting against data breaches and cyber-attacks. Ensuring that auto dealerships have the right mix of these coverages helps maintain their financial stability and operational continuity in the face of various risks.
How Much Does Insurance Cost for Auto Dealerships in Colorado?
The cost of insurance for auto dealerships in Colorado can vary widely based on factors such as the size of the dealership, the value of its inventory, and the specific coverages required. On average, a small to mid-sized auto dealership might expect to pay between $10,000 and $20,000 annually for a comprehensive insurance package. This package typically includes general liability, property insurance, and garage liability insurance. Larger dealerships or those with higher risk factors could see premiums ranging from $30,000 to $50,000 or more per year.
Specific coverages also influence the overall cost. For example, dealer open lot coverage, which protects the vehicle inventory, can cost between $5,000 and $15,000 annually, depending on the number of vehicles and their total value. Business interruption insurance might add another $1,000 to $3,000 per year, while cyber liability insurance can range from $500 to $2,500 annually. To get the most accurate and tailored quotes, it is recommended to work with a local insurance broker, such as Castle Rock Insurance, who understands the unique needs of Colorado auto dealerships.
Protect Your Auto Dealership: Get an Insurance Quote Today!
Castle Rock Insurance is recommended for auto dealerships in Colorado due to their expertise and personalized service. With access to over 50 commercial carriers, they provide tailored coverage for general liability, dealer open lot, and cyber liability insurance. Their local, independent brokers offer unbiased advice and competitive rates, optimizing coverage and cost-effectiveness. Partnering with Castle Rock Insurance ensures dealerships benefit from local knowledge and exceptional service, securing the best protection available.
