Sunday, 2 December 2018

Why Dealers Need The Auto Dealership Insurance NJ Reps Recommend

By Jason Long


There are special challenges associated with businesses selling cars. They often end up closing their doors when they are faced with major lawsuits and aren't properly insured. Owners can be ruined financially. With the auto dealership insurance NJ agents recommend personal and business liability is reduced.

You need coverage to protect you and minimize your potential risk. Your inventory, service department, and showroom have to be protected. You also need to ensure your employees' safety and limit any liability to you have for employee misconduct. Customers all want to test drive cars before they make purchase decisions. You must be adequately insured to keep them, and the vehicle, safe.

Not all car lots have the same set of challenges. It's important to discuss the kind of operation you run with your agent to set up the particular coverage that is right for you. It's especially important for dealers who sell used cars to have title errors and omissions coverage for instance. Insurers can meet with you at your business and assess any safety risks they find on your lot to avoid unnecessary claims.

It is an unfortunate fact with today's technology that businesses get hacked. There seems to be a new case in the news all the time. In order to protect you and your customers from serious data breaches, you need coverage for any information about customers and their personal data that you keep stored electronically. These types of crimes have seen a dramatic rise in the past few years and probably won't slow down in the near future.

When you have people working for you, you need to ensure yourself against any accusations of wrongdoing they might make against you. This is called employee practices liability. Employees sometimes claim they have been harassed or discriminated against although you have done nothing wrong. If you have to let an employee go for cause, they can decide to sue you for firing them unfairly. As long as you have EPLI, you have protection.

Employee errors and omissions coverage is important to have in case one of your sales people makes an error when filling out lease or sale contracts. You will be vulnerable to being sued if an employee gives incorrect mileage or accident history on a vehicle to a customer. You also need E&O protection if you plan to offer automobile insurance to the buyers of your cars.

Serious weather events can happen at any time, and your property can be materially damaged as a result of a storm, hurricane, or tornado. Unless your buildings and inventory are adequately insured you may face the closure of your business, either temporarily or permanently. You also have to consider the possibility of fire damaging your property or someone deliberately coming onto your lot and damaging the inventory.

In order to attract the best sales people and office staff, you have to offer more than good commissions and a comfortable work environment. Your insurer can help you with life insurance policies and 401-K options to make your lot the most desirable place to work. Your agent will know the best way to bundle these policies to maximize their effectiveness.




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