- Mon-Fri: 8:30 am to 5:00 pm
- Mon-Fri: 8:30 am to 5:00 pm
- (440) 888-7854
- 7055 Engle Road Suite 4-403
- (440) 888-7854
- 7055 Engle Road Suite 4-403
At Toth-Felty Insurance Agency, Inc., located in Middleburg Heights, Ohio, we specialize in providing comprehensive insurance solutions tailored for auto dealerships of all sizes. Whether you operate a large franchise or a small independent lot, our policies are designed to protect your business assets, employees, and customers from a wide range of risks inherent in the automotive sales industry.
Auto dealerships face unique challenges and exposures that require specialized insurance coverage. From potential liabilities arising during vehicle demonstrations to safeguarding your inventory against unforeseen events, having the right insurance in place is crucial for the longevity and success of your business.
At Toth-Felty Insurance Agency, we offer a variety of coverage options to ensure that every aspect of your dealership is protected:
1. Garage Liability Insurance
This foundational coverage protects against liabilities resulting from the ownership and maintenance of your garage operations. It addresses claims of bodily injury or property damage that may occur on your premises or as a result of your business activities. For instance, if a customer slips and falls in your showroom or service area, garage liability insurance can cover the associated medical expenses and legal fees.
2. Dealers Open Lot Insurance
Your vehicle inventory represents a significant investment. Dealers Open Lot Insurance provides physical damage coverage for vehicles owned by your dealership. This includes protection against risks such as collision, fire, theft, vandalism, and natural disasters like hail or floods. Ensuring your inventory is covered means that in the event of unforeseen damages, your financial stability remains intact.Hagerty+1Amwins+1
3. Garagekeepers Liability Insurance
If your dealership offers repair or bodywork services on vehicles not owned by your business, Garagekeepers Liability Insurance is essential. This coverage protects against damages to customers’ vehicles while they are in your care, custody, or control. Whether a vehicle is damaged due to a fire in your service area or a technician’s error, this policy helps cover the repair or replacement costs, safeguarding your relationship with customers and your business reputation.
4. Auto Liability Insurance
Operating vehicles is a daily aspect of dealership operations, from test drives to vehicle deliveries. Auto Liability Insurance provides protection in the event of lawsuits arising from auto accidents involving your business vehicles. This coverage addresses bodily injury and property damage claims, ensuring that legal expenses and potential settlements do not adversely affect your business finances.
5. False Pretense Coverage
In the automotive sales industry, the risk of fraud is ever-present. False Pretense Coverage protects your dealership against losses resulting from deceptive acts. For example, if an individual misrepresents their identity during a test drive and absconds with a vehicle, this coverage helps mitigate the financial loss. It’s important to note that this is distinct from coverage related to credit defaults or bad debts.
6. Auto Dealer Bonds
Compliance with state regulations is vital for the lawful operation of your dealership. We offer Auto Dealer Bonds to assist you in meeting Ohio’s legal requirements for new or used car businesses. These bonds serve as a guarantee of your adherence to industry regulations and ethical business practices, providing assurance to both the state and your customers.
7. Errors and Omissions (E&O) Coverage
Even with meticulous attention to detail, mistakes can occur in the complex processes of vehicle sales and financing. E&O Coverage protects your dealership against claims arising from errors or omissions in documentation and disclosures. This includes areas such as Truth in Lending/Leasing Liability, Federal Odometer and Prior Damage Disclosure Liability, and Title Errors and Omissions. Having this coverage ensures that inadvertent mistakes do not lead to significant financial or reputational damage.
Beyond the core coverages, there are additional policies that can further enhance your dealership’s protection:
Workers’ Compensation Insurance: Provides benefits to employees who suffer work-related injuries or illnesses, covering medical expenses and lost wages.
Employment Practices Liability Insurance (EPLI): Protects against claims related to employment practices, such as discrimination, harassment, or wrongful termination.
Pollution Coverage: Addresses liabilities arising from environmental contamination due to dealership operations.
Business Income Loss Coverage: Compensates for lost income during periods when your dealership cannot operate due to covered events.
Incorporating these additional coverages can provide a more robust safety net, ensuring that various facets of your business are safeguarded against potential risks.
At Toth-Felty Insurance Agency, Inc., we pride ourselves on our deep understanding of the automotive industry and the specific challenges faced by dealerships in Ohio. Our team is dedicated to crafting insurance solutions that align with your business’s unique needs, providing personalized service and expert guidance.
BIG or SMALL, we have the right policy for you!
Auto dealer insurance typically encompasses several key coverages to safeguard your business:
Garage Liability Insurance: Provides protection against liabilities arising from the ownership and maintenance of the dealership premises.
Dealer’s Open Lot Insurance: Offers physical damage coverage for vehicles owned by your dealership, protecting against events like fire, theft, and vandalism.
Garage Keepers Liability Insurance: Covers damages to customers’ vehicles while in your possession for repair or servicing.
Auto Liability Insurance: Protects in the event of lawsuits resulting from auto accidents involving dealership vehicles.
False Pretense Coverage: Covers losses if a vehicle is acquired through fraudulent means, such as during test drives.
These coverages can often be bundled into a comprehensive policy tailored to your dealership’s specific needs.
The cost of auto dealer insurance depends on several factors, including:
Size of the Dealership: Larger operations may face higher premiums due to increased risks.
Location: The state and area where your dealership operates can influence insurance costs.
Specific Risks: Exposure to particular risks, such as high crime rates or susceptibility to natural disasters, can affect pricing.
Coverage Amounts and Deductibles: Higher coverage limits and lower deductibles typically result in higher premiums.
Bundling different coverage types can often lead to cost savings.
Yes, many insurance providers offer comprehensive packages that bundle various coverages into a single policy. This approach simplifies management and can be more cost-effective. However, depending on your dealership’s specific needs, standalone policies might be recommended for certain coverages. It’s advisable to consult with an insurance professional to determine the best structure for your coverage.
False Pretense coverage protects your dealership against losses when a vehicle is acquired through deceptive means, such as fraudulent payment or identity theft. For example, if an individual provides a counterfeit check or false identity to purchase a vehicle, this coverage would help mitigate the financial loss. Given the increasing sophistication of fraud schemes, having False Pretense coverage is crucial for modern dealerships.
Implementing robust risk management practices can help minimize claims and may lead to reduced insurance costs. Consider the following strategies:
Employee Training: Regularly train staff on safety protocols, customer interactions, and fraud detection techniques.
Safety Programs: Establish comprehensive safety procedures for test drives, vehicle maintenance, and customer areas to prevent accidents and injuries.
Security Measures: Install surveillance systems, secure key storage, and implement inventory controls to deter theft and vandalism.
Regular Audits: Conduct periodic reviews of operations, finances, and compliance with industry regulations to identify and address potential vulnerabilities.
Collaborating with your insurance provider to assess and improve risk management practices can not only enhance safety but also positively impact your insurance premiums.
The following charts represent statistical insurance information for businesses in the State of Ohio for the year 2017.
Business insurance statistics provided by DataLinks for 2017.
The average insurance plan utilized for business owners in Ohio.
At Toth-Felty Insurance we provide all of our prospective insurance clients with free over the phone quotes.
If you’re interested in obtaining home, auto, life, business, health, farm insurance or interested in any bonding information, please fill out our short form and a Toth-Felty representative will contact you shortly.