Being the owner of a heavy truck dealership and repair shop is no joke. From the costs of keeping the business afloat to the long hours you need to put in, there are a lot of challenges involved in a business of such a nature. Add to that the various risks your business and your employees face every day, and you will find yourself panicking over how to manage these challenges.

But you don’t need to worry when you have a solid insurance policy in place to manage these risks. But what insurance is needed for heavy truck dealers and repair shops? Let’s find out!

What Insurance Is Needed for Heavy Truck Dealers and Repair Shops?

The risks involved when you don't have insurance can cripple your business and even lead to bankruptcy. What if there is a fire in your dealership? What if flood water enters your property? What if a buyer slips and falls in your showroom? What if an employee gets injured and takes legal action against you? To cover all these issues, you will need thoroughly inclusive insurance plans to protect your business, your employees, and yourself as a business owner.

The following insurance plans can protect your inventory, safeguard your employees and your property, and minimize the risks involved in your dealership and your repair shop.

Garage Liability Insurance

Garage liability insurance is a special type of industry-specific insurance that is designed for the automotive industry. Automobile dealerships and repair shops often add garage liability insurance to their business insurance to protect against bodily injury and property damage that is caused by your business operations.

Garage liability insurance is actually a type of umbrella insurance that offers coverage for your everyday operations in the automotive industry. It adds a layer of protection to your existing general liability. It covers property damage and bodily injury caused by your direct operations that are not usually covered by your general business liability.

Employment Practices Liability Insurance (EPLI)

The Employment Practices Liability Insurance (EPLI) offers coverage for any claims made by employees in case their legal rights have been violated. It offers protection against lawsuits filed by your workers. It often comes as an extension of the business owner's policy (BOP).

The issues covered under EPLI insurance include lawsuits filed for:
Discrimination
Wrongful termination
Sexual harassment
Negligent evaluation
Wrongful discipline
Breach of employment contract
Failure to promote or employ
Unlawful infliction of emotional distress
Deprivation of career opportunity
Mismanagement of the employee benefits plan.

The Employment Practices Liability Insurance (EPLI) will reimburse you for the costs of legal defense and settlements, whether you win or lose the lawsuit. However, the liabilities covered by workers' compensation insurance are not included in an EPLI policy.

Drive-Away Collision Insurance

Auto liability insurance offers coverage for lawsuits arising from an accident that takes place when you or your employees are driving a vehicle. However, this insurance excludes coverage for the delivery or pickup of vehicles from distances that are greater than 50 miles from your dealership.

Therefore, drive-away collision insurance broadens your auto liability insurance and offers coverage for the trucks being transported from the place of distribution to the destination. This type of coverage only applies to collisions that take place at a distance that is greater than 50 miles from the dealership.

Dealers' E&O Insurance

Dealers’ errors & omissions insurance is especially needed for heavy truck dealers as they are always exposed to certain risks that do not apply to other businesses. A dealers’ errors & omissions policy offers protection against the economic damages that arise from anything other than bodily injury, property damage, or personal or advertising injury.

To put it simply, this type of policy offers coverage for lawsuits arising from any errors and omissions made by employees or the business owner. For instance, if your employee forgets to add something in the loan papers or they make an error while filling them out, a dealers' errors & omissions policy will protect you from any damages arising from these errors and omissions. You can protect yourself from costly mistakes and hefty lawsuits by getting a dealers' errors & omissions policy.

Physical Damage Insurance

A physical damage insurance policy offers coverage for the vehicles that are owned by you. It protects you against damage to your vehicles caused by theft, fire, collision, and vandalism. So if your trucks catch fire or if someone steals them, physical damage insurance would give you coverage for the repairs. It also helps pay for damages caused by falling objects, collisions with another vehicle, fire, rollovers, vandalism, earthquakes, or hitting an animal.

However, as a dealership owner, you may need additional protection like drive-away collision insurance, etc., as physical damage insurance does not cover the legal fees for lawsuits made after you crash a truck, the medical expenses arising from an accident, the income lost in case you or the passengers miss work, the property stolen from your vehicle, and the damages made to another car after the accident.

Business Income Insurance

Business income insurance is also known as business interruption insurance. It offers coverage for the income lost when your business sustains damage from theft, fire, wind, or vandalism. It is ideal for helping you get back to business if you are recovering from property damage.

For instance, if your dealership or repair shop catches fire and you have to close down your business for a few weeks, you will not be operating, and there will be a loss of income. But if you have business income insurance, it would pay you for the income lost and the expenses that occurred during this time.

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In addition to all of these insurance policies, you may also need cyber liability insurance, 401(k) plans and life insurance, and workers’ compensation insurance. Now that you know what insurance is needed for heavy truck dealers and repair shops, feel free to reach out to Elemental Risk Management to devise a solid insurance plan for your dealership and repair shop.

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