What Insurance Do Franchise Auto Dealers Need in New Mexico? | Elemental Risk Management

The coronavirus pandemic has changed the way we do business along with the risk landscape. Those who are thinking of starting their own business as a franchise auto dealer will need New Mexico franchise auto dealer insurance. 

For any business, the importance of having it insured cannot be denied, especially in the auto industry. The good news is that there are multiple options available for those who are looking to get reliable and affordable franchise auto dealer insurance in New Mexico. 

A business fits the profile of a business in need of auto dealer insurance if it has to do with selling self-propelled motor vehicles. Each state has laws or statutes which state if you have the vehicle of a customer in your custody, care or control (as part of a consignment), then the dealer is legally liable for any damages that may occur. This is why to protect their business, auto dealerships in New Mexico purchase auto dealer’s insurance, which can be used in the following circumstances:

• For franchised and independent dealers in trucks and trailers
• For franchised and independent recreational vehicle dealers and private passenger auto dealers
• For franchised and independent motorcycle dealers
• For franchised and independent dealerships of self-propelled motor vehicles
• For Franchised and independent equipment dealers
  
  

Franchise auto dealer insurance in New Mexico offers just one set of coverage which is required by the dealership to conduct their operations. However, there are many other coverage options that could also be needed by a franchise auto dealership in New Mexico, such as the following:

• Building Coverage
• Business Personal Property Coverage
• Completed Operations Coverage
• Cyber Coverage
• Employee Benefits Liability Coverage
• Employee Tools
• Employment Practices Liability Coverage
• Loss of Business Income
• Umbrella Liability Coverage
  
  

There are plenty of reasons why you should get a franchise auto dealer’s insurance in New Mexico. Not only does it lend credibility to your business, but it offers an umbrella of protection for your dealership, which makes New Mexico franchise auto dealer insurance vital to any dealership.

Keeping that in mind, the following are some of the areas that are covered by auto dealer insurance in New Mexico:



The Covered Auto Liability Coverage offers franchise dealers in New Mexico reliable liability coverage related to the use and operations of autos in their dealer business.

It can also be extended to the customers if they do not have coverage while at the same time operating the dealership’s automobile during test driving in instances where the customer is uninsured. If the loss results to litigation, then the insurance provider will pay for any defense expenditures that are related to the claim. 

Umbrella liability is also known as excess liability and is another important type of insurance coverage that you need to get when looking for insurance for a retail store. Once a retailer realizes the importance of general liability, they often get excess liability as well.

The whole point of this being added to a retailer’s insurance policy is so that they can get extended coverage which can be very helpful when it comes to covering medical expenses, which tend to pile up very fast once an employee gets injured while working at the retail store. If the coverage of the general liability policy reaches its limit, the excess liability kicks in to cover any additional expenses.

This is one area of a business that retailers often do not pay attention to, but it could have a drastic impact on the overall wellbeing of your business. In the digital world that we live in, where almost everything can be done online, it pays to ensure that you and your business are going to be protected from cyber criminals.

Adding cyber crime liability gives you the coverage you need when you are targeted by cyber criminals. As the name implies, the cyber crime liability offers coverage for all losses that were the result of a cyber attack on your retail store’s management system.

Another area of insurance for retail stores in New Mexico that’s often ignored is commercial auto insurance. If you are a retailer that also operates business-owned vehicles, then you are definitely going to need commercial auto insurance to safeguard you from expenses due to damage to the car and damage to other property because of your business-owned vehicle. 

According to the law, retail businesses in New Mexico are required to have a property damage liability of up to $10,000 per accident and up to $50,000 in bodily injury liability per accident, which is a lot of money, and just another reason why you should get commercial auto insurance. 

The Acts Errors and Omissions Coverage provides reliable coverage for any and all acts, omissions and errors that are related to the failure of complying with disclosure laws of the state. This also includes all acts that are related to the auto dealer serving as an insurance broker or any title defect in an auto sold by the auto dealership. 

It goes without saying that the insurance needs vary greatly depending on the auto dealer. This is the reason why it is so important for those who are looking to start a franchise auto dealership in New Mexico to find a reputable insurance provider who has experience in working alongside auto dealers to provide them with the best coverage. 

Protecting your business goes far beyond getting an insurance policy. To make sure you get complete protection for your auto dealership in New Mexico, it’s best to do business with an insurance provider that specializes in creating safety and compliance programs that are relevant to any business in the automotive industry.

Another area of insurance for retail stores in New Mexico that’s often ignored is commercial auto insurance. If you are a retailer that also operates business-owned vehicles, then you are definitely going to need commercial auto insurance to safeguard you from expenses due to damage to the car and damage to other property because of your business-owned vehicle. 

According to the law, retail businesses in New Mexico are required to have a property damage liability of up to $10,000 per accident and up to $50,000 in bodily injury liability per accident, which is a lot of money, and just another reason why you should get commercial auto insurance.