Insurance for RV Dealerships

Insurance Policies to Consider For  RV Dealers 

Garage Liability Insurance

This is a specialty insurance tailored for the automotive industry, making it an important option when considering insurance for RV dealers. It essentially protects you in case of property damage and any bodily injuries caused by operations. 

A garage liability insurance provides compensation for claims that entail liability costs, medical expenses, and repair expenditures as a result of accidents. This type of insurance is usually an umbrella policy that offers coverage for your RV dealership’s operations. The main types of coverage include:

Bodily Injury

If someone (other than your employee) gets injured on your business premises, you are responsible for their injuries by law, which includes paying their medical fees. For instance, a customer may slip and fall while entering your garage. If you would have garage liability insurance, the insurance provider will help pay for the medical expenses.

Third Party Property Damage

This aspect concerns protection against harm to someone else’s property within your dealership. For example, if a client’s RV gets damaged while under repair, an insurance policy would compensate for the costs incurred in replacing or repairing the vehicle.

Product Liability

If you produce or sell products in your RV garage, there is a chance of them turning out to be faulty. For instance, if you happen to fix defective parts in a client’s RV and that results in property damage, a garage liability insurance would cover you against the related expenses.

Commercial Property Insurance

Whenever you own or lease a commercial property, you require commercial property insurance for RV dealers. It can safeguard your RV dealership against perils, such as theft, fire and natural disaster. However, it does not include regular wear and tear or natural disasters.

This coverage can protect your premises, tools, equipment, furniture, inventory, and personal property. It also takes into account items right outside the premises, such as fencing, outdoor signs, and landscaping, including gardens, trees and shrubs. Here is why commercial property insurance is vital for your RV dealership:

Recovery After Loss

A business loss can be a traumatic event and the recovery process may be rather long without an insurance policy. If your property gets damaged due a fire, your insurance provider can pay a major chunk of the costs to help you get your business running once again. A shorter recovery time can also safeguard your business’s reputation.

Repair Costs

If a covered loss occurs, a commercial property insurance policy can contribute towards the repair costs to get you back on your feet quickly. For instance, if a miscreant vandalizes your RV garage door to prevent clients from entering, such an insurance policy can help you get it repaired quickly.

Replacement Costs

If a covered loss to your RV dealership is too severe for repairs, a commercial property insurance policy can pay for replacements. For instance, if a fire breaks out and damages important inventory, this policy can share your financial burdens by providing replacement costs.

Dealers’ Open Lot Insurance

One of the most crucial insurance for RV dealers is the dealers’ open lot insurance (DOL). It is also known as auto physical damage coverage, and takes into account the physical damage to the vehicles owned by your business.

DOL covers new and used RVs for sale, demonstration vehicles, and service vehicles. Here are details regarding the policy’s coverage: 

• Collision coverage: This provides compensation in case a covered RV is hit by another vehicle or object or due to being overturned. For instance, if a client backs up into a wall by mistake, your insurance provider would take care of the repairs.

• For losses excluding collision, you can select one of the following coverage:

• Comprehensive coverage: This will pay for any type of loss that is not explicitly excluded and does not fall under collision coverage.
  
  
• Specified causes of loss coverage: This option offers compensation for the particular incidents mentioned in the contract, such as hail, lightning, earthquake, flood, fire, and theft.
  
  
• Fire and theft coverage: Vehicles that are damaged or lost due to fire, explosion, lightning, or theft are covered under this policy option.
  
  

False pretenses coverage: Coverage under this category is usually excluded from DOL policies, but can be included by endorsement. If this option is opted for, it will safeguard you against situations like someone selling you an RV they do not really own.