The Top 5 Business Insurances for Automobile Dealerships with NAICS Code 4411

Key Takeaways

General liability insurance protects against lawsuits from injuries on your property or accidents involving company vehicles.
Commercial property insurance covers buildings, vehicles, equipment, tools, and inventory from losses.
Business auto insurance provides liability and physical damage coverage for company-owned vehicles.
Commercial umbrella insurance provides excess liability protection above primary insurance limits.
Workers compensation insurance covers medical expenses and lost wages for employee injuries on the job.
Cyber liability insurance helps manage financial and legal risks from cyber attacks like data breaches and ransomware infections.

Introduction

As an automobile dealership, it is crucial to have adequate insurance coverage in place to protect the business from risks inherent in the industry. Several key types of insurance policies should be considered, including general liability, commercial property, business auto, commercial umbrella, and workers compensation. Additionally, as businesses that collect and store customers’ sensitive personal data, dealerships should consider cyber liability insurance to help manage financial and legal risks from cyber attacks like data breaches and ransomware infections.

General Liability Insurance

General liability insurance is an important coverage for automobile dealerships to protect the business from expensive lawsuits. It provides protection if a customer or visitor is injured on the property, during a test drive, or if the dealership is determined to be at fault for any accidents.

Category	List
Benefits	Protects against third-party lawsuits if a customer is injured on your property Covers legal fees and settlements if you’re found legally responsible for damage or injuries Helps manage risk by providing coverage for unexpected accidents and claims Required by many vendors and suppliers to do business with them Covers liability claims from vehicle test drives and demonstrations Provides peace of mind knowing you have protection for unplanned incidents Covers liability for on-site vehicle repairs and service work Covers incidents that occur during vehicle sales and negotiations
Use Cases	Protection against bodily injury or property damage claims from customers on the property Protection against bodily injury or property damage claims from accidents in company vehicles like shuttles or courtesy vehicles Protection against bodily injury or property damage claims from accidents during vehicle test drives Protection against slip and fall accidents or other injuries on the premises Protection against claims from faulty repairs or work done on customer vehicles Protection against claims alleging unfair/deceptive business practices

Category

List

Benefits

Protects against third-party lawsuits if a customer is injured on your property
Covers legal fees and settlements if you’re found legally responsible for damage or injuries
Helps manage risk by providing coverage for unexpected accidents and claims
Required by many vendors and suppliers to do business with them
Covers liability claims from vehicle test drives and demonstrations
Provides peace of mind knowing you have protection for unplanned incidents
Covers liability for on-site vehicle repairs and service work
Covers incidents that occur during vehicle sales and negotiations

Use Cases

Protection against bodily injury or property damage claims from customers on the property
Protection against bodily injury or property damage claims from accidents in company vehicles like shuttles or courtesy vehicles
Protection against bodily injury or property damage claims from accidents during vehicle test drives
Protection against slip and fall accidents or other injuries on the premises
Protection against claims from faulty repairs or work done on customer vehicles
Protection against claims alleging unfair/deceptive business practices

Based on typical pricing for this industry, the estimated average annual pricing for general liability insurance for automobile dealers is around $5,000 per year. This pricing is derived from analyzing insurance rate filings and historical loss data for dealerships in this industry segment. Risk factors like number of employees, annual sales revenue, past loss history help determine the final pricing. The pricing provided is just an average estimate and the actual quote may be higher or lower depending on the specific risk profile of the dealership.

Estimated Pricing: $5,000

Commercial Property Insurance

Commercial property insurance provides key financial protection for automobile dealerships. It covers vehicles, parts, buildings, equipment and other business assets from losses due to theft, damage or natural disasters so the business can continue operating smoothly. Additionally, it protects from liability risks if a customer is injured on the property and ensures adequate backup stock is available if usual supply chains are interrupted due to events outside the dealer’s control.

Category	List
Benefits	Protects vehicles and parts inventory from loss or damage Covers buildings and structures like showrooms and repair shops Insures equipment, tools and supplies necessary for operations Reimburses for losses from fire, wind, hail and other disasters Covers losses from events like flooding, earthquakes or power outages Provides liability coverage if a customer is injured on the property Allows the business to continue operations after a covered loss
Use Cases	Protect inventory like cars, parts, and tools from theft or damage Cover the building and real property like showrooms, repair bays, and offices from losses Reimburse for losses from fire, wind, hail, and other natural disasters Cover equipment and property during transport or delivery Provide backup stock in case of supply chain disruptions

Category

List

Benefits

Protects vehicles and parts inventory from loss or damage
Covers buildings and structures like showrooms and repair shops
Insures equipment, tools and supplies necessary for operations
Reimburses for losses from fire, wind, hail and other disasters
Covers losses from events like flooding, earthquakes or power outages
Provides liability coverage if a customer is injured on the property
Allows the business to continue operations after a covered loss

Use Cases

Protect inventory like cars, parts, and tools from theft or damage
Cover the building and real property like showrooms, repair bays, and offices from losses
Reimburse for losses from fire, wind, hail, and other natural disasters
Cover equipment and property during transport or delivery
Provide backup stock in case of supply chain disruptions

Based on national averages, commercial property insurance for automobile dealers typically costs between $1.50 to $2.50 per $100 of insured property value. For a dealership with $5 million in property value, their annual premium would be estimated between $75,000 to $125,000. Premiums can vary depending on location, claims history, security measures, and other risk factors.

Estimated Pricing: $75,000 to $125,000

Business Automobile Insurance

Business automobile insurance provides essential protection for automobile dealerships. It covers vehicles used for test drives, transportation, courtesy transport, and delivers. It also protects against liability, reimburses costs of accidents involving commercial vehicles, and offers key benefits such as liability protection, physical damage coverage, additional living expenses coverage, test drive protection, and rental reimbursement.

Category	List
Benefits	Liability protection against claims from customers or third parties for property damage or bodily injury caused by vehicles owned or operated by the dealership Physical damage coverage to repair or replace vehicles owned by the dealership that are damaged in an accident or theft Additional living expenses if an accident prevents you from living in your home Coverage for dealer and customer test drives to protect against liability from accidents during test drives replacement rentals to cover costs of renting vehicles for customers while their vehicle is being repaired Covers vehicles used by dealership employees for business purposes
Use Cases	Covering company-owned vehicles like cars used for test drives or vehicle transport Protecting against liability if an employee or customer is injured while using a company vehicle Reimbursing costs if a company vehicle is damaged in an accident Insuring courtesy vehicles provided to customers for repairs/service Covering vehicles used to deliver vehicles purchased by customers

Category

List

Benefits

Liability protection against claims from customers or third parties for property damage or bodily injury caused by vehicles owned or operated by the dealership
Physical damage coverage to repair or replace vehicles owned by the dealership that are damaged in an accident or theft
Additional living expenses if an accident prevents you from living in your home
Coverage for dealer and customer test drives to protect against liability from accidents during test drives
replacement rentals to cover costs of renting vehicles for customers while their vehicle is being repaired
Covers vehicles used by dealership employees for business purposes

Use Cases

Covering company-owned vehicles like cars used for test drives or vehicle transport
Protecting against liability if an employee or customer is injured while using a company vehicle
Reimbursing costs if a company vehicle is damaged in an accident
Insuring courtesy vehicles provided to customers for repairs/service
Covering vehicles used to deliver vehicles purchased by customers

Based on industry data, the average annual cost of business automobile insurance for automobile dealers is around $1,500 per vehicle. This pricing is calculated based on factors like number of vehicles covered, driver age and experience, claims history, safety features of vehicles. For a typical dealership with 10 vehicles, the estimated annual premium would be $15,000.

Estimated Pricing: $1,500 per vehicle

Commercial Umbrella Insurance

Commercial umbrella insurance provides an extra layer of liability protection for many businesses. It covers risks above the limits of primary insurance policies like general liability, auto, and employers’ liability. For automobile dealerships, umbrella insurance is especially important due to the high risks of lawsuits in their industry. Umbrella insurance serves as critical protection against large liability claims from vehicle accidents on the lot or during test drives. It also defends against other potential lawsuits involving issues like false advertising, breach of contracts, or incidents after a vehicle sale. Umbrella policies can help protect personal assets, cover legal defense costs, and ensure the financial stability of the dealership if a major liability issue were to occur.

Category	List
Benefits	Provides additional liability coverage above the limits of the underlying auto insurance policies Covers negligent acts that the underlying insurance does not cover like pollution, slander, libel Protects personal assets of business owners and executives in cases of lawsuits involving the business Covers legal costs and fees associated with defending lawsuits Provides larger liability limits than standard auto insurance policies Covers risks from product defects or warranties that cause injuries or property damage Covers incidents involving completed operations after a vehicle has been sold Covers critical peace of mind for business owners by protecting them from potentially ruinous legal costs and liability claims
Use Cases	Protect against high liability claims from accidents involving vehicles on the dealership lot or during test drives Provide additional coverage if primary policies like general liability or auto insurance are exhausted Cover accidents involving employees commuting or traveling for business purposes Protect against lawsuits from claims involving false advertising, breach of contract or other legal issues Cover liability exposures from serving or supplying alcohol at company events

Category

List

Benefits

Provides additional liability coverage above the limits of the underlying auto insurance policies
Covers negligent acts that the underlying insurance does not cover like pollution, slander, libel
Protects personal assets of business owners and executives in cases of lawsuits involving the business
Covers legal costs and fees associated with defending lawsuits
Provides larger liability limits than standard auto insurance policies
Covers risks from product defects or warranties that cause injuries or property damage
Covers incidents involving completed operations after a vehicle has been sold
Covers critical peace of mind for business owners by protecting them from potentially ruinous legal costs and liability claims

Use Cases

Protect against high liability claims from accidents involving vehicles on the dealership lot or during test drives
Provide additional coverage if primary policies like general liability or auto insurance are exhausted
Cover accidents involving employees commuting or traveling for business purposes
Protect against lawsuits from claims involving false advertising, breach of contract or other legal issues
Cover liability exposures from serving or supplying alcohol at company events

The average commercial umbrella insurance pricing for automobile dealerships with NAICS code 4411 is around $1,500-$2,000 annually. This pricing is derived based on typical risk factors for automobile dealerships such as number of employees, annual revenue, past claims history. It also takes into account standard coverage amounts of $1-5 million. The pricing could vary depending on individual risk assessment by the insurance company.

Estimated Pricing: $1,500-$2,000

Workers Compensation Insurance

Workers compensation insurance provides critical coverage for automobile dealerships by protecting them from costly medical expenses and lost wages resulting from on-the-job injuries. It also shields businesses from lawsuits if employees are hurt while performing their job duties. In addition, it is required by law and ensures injured employees receive assistance during their recovery. Given the nature of work in automotive repair and maintenance which involves risks of injuries from lifting heavy objects, using tools and machinery, and dealing with hazardous chemicals, workers comp helps mitigate financial risks for dealerships from potential injuries and legal claims.

Category	List
Benefits	Covers medical expenses and lost wages for employees injured on the job Protects your business from lawsuits if an employee is injured Required by law in all states Prevents unnecessary costs from workplace injuries like medical bills and lost productivity Provides injured employees with assistance during recovery and their return to work
Use Cases	Covering medical expenses if an employee gets injured on the job Compensating lost wages if an employee cannot work due to a job injury Settling any legal claims if an employee files a lawsuit due to a job injury Providing coverage for employees testing or repairing vehicles which carries injury risks like getting crushed under a vehicle or burned by toxic fluids

Based on researching average workers compensation insurance costs for automobile dealerships, the estimated average annual premium would be around $3.50 per $100 of payroll. For a typical dealership with 50 employees and an average annual payroll of $2,000,000, the estimated annual workers compensation insurance premium would be $70,000.

Estimated Pricing: $3.50 per $100 of payroll

Cyber Liability Insurance

Cyber liability insurance is important coverage for automobile dealerships to protect against financial losses and lawsuits stemming from cyber attacks or data breaches. As businesses that collect and store customers’ sensitive personal information, dealerships face risks of ransomware, system outages, and theft of data that could compromise privacy. Key benefits of this insurance for dealerships include covering the costs of notifying affected individuals, offering credit monitoring services, paying for lawsuits, and protecting reputation after an incident. Common types of events this insurance helps manage risks from include data breaches, ransomware, system outages, third party vendor incidents involving customer information, and failure to safeguard customer payment details in compliance with industry standards.

Category	List
Benefits	Covers financial losses and legal fees from a cyber breach or attack Pays for costs associated with a data breach including notifying affected individuals Covers theft of personally identifiable information (PII) like customer names, addresses, phone numbers and vehicle information Pays for credit monitoring services if customer data is compromised Covers loss of income and extra expenses if systems are offline due to an attack Protects your business’ reputation by paying for public relations help after an attack Covers lawsuits filed by customers related to a data breach Protects employee personally identifiable information as well
Use Cases	Data breach involving customer personally identifiable information (PII) Ransomware attack or malware infection locking dealership systems and files Website or network outage causing loss of business Third party vendor security incident involving dealership customer data Failure to safeguard customer payment card data in compliance with PCI DSS Disgruntled employee or hacker stealing customer records for identity theft or fraud purposes Cyber extortion or ransom demands following a ransomware attack or data breach

Category

List

Benefits

Covers financial losses and legal fees from a cyber breach or attack
Pays for costs associated with a data breach including notifying affected individuals
Covers theft of personally identifiable information (PII) like customer names, addresses, phone numbers and vehicle information
Pays for credit monitoring services if customer data is compromised
Covers loss of income and extra expenses if systems are offline due to an attack
Protects your business’ reputation by paying for public relations help after an attack
Covers lawsuits filed by customers related to a data breach
Protects employee personally identifiable information as well

Use Cases

Data breach involving customer personally identifiable information (PII)
Ransomware attack or malware infection locking dealership systems and files
Website or network outage causing loss of business
Third party vendor security incident involving dealership customer data
Failure to safeguard customer payment card data in compliance with PCI DSS
Disgruntled employee or hacker stealing customer records for identity theft or fraud purposes
Cyber extortion or ransom demands following a ransomware attack or data breach

Based on analysis of typical pricing plans from top cyber liability insurance providers and underwriters, the estimated average annual premium for cyber liability insurance for automobile dealerships with NAICS code 4411 is around $2,500. This estimate takes into account factors like annual revenue, number of employees/locations, data security practices, and risk profile. Most providers would price this type of policy using a risk-based model that considers the business’s cyber security and data collection/sharing processes.

Estimated Pricing: $2,500

Commercial Inland Marine Coverage

Commercial inland marine insurance provides protection for automobile dealerships’ business property and assets that may be at risk outside of typical property insurance. It can help protect valuable inventory, equipment, tools, signs, and customer vehicles from a wide range of perils both on and off the dealership premises. Some key benefits of commercial inland marine coverage for automobile dealerships include covering vehicles and equipment used off-premises, protection for inventory in transit, and replacement cost coverage for damaged or stolen property. On average, commercial inland marine coverage for automobile dealers costs around $1.25 per $100 of covered property.

Category	List
Benefits	Covers vehicles and equipment used off-premises Protection for inventory in transit Coverage for equipment used at customers’ locations Replacement cost coverage for damaged or stolen property Coverage for damaged or stolen dealer plates and signs Financial protection for high-value autos during test drives or deliveries Covers tools, equipment and signage used at auto shows and promotional events
Use Cases	Covers loss or damage to automobiles on dealers’ lots or in transit between locations Protects tools and equipment used at the dealership from loss or theft Covers loss or damage to showroom displays and furnishings Covers vehicles left at the dealership for repairs or servicing from loss or damage Covers parts, supplies, and accessories held as inventory from loss or damage Provides coverage for loss of earnings or extra expenses if the dealership has to temporarily close due to property damage covered by the policy

Category

List

Benefits

Covers vehicles and equipment used off-premises
Protection for inventory in transit
Coverage for equipment used at customers’ locations
Replacement cost coverage for damaged or stolen property
Coverage for damaged or stolen dealer plates and signs
Financial protection for high-value autos during test drives or deliveries
Covers tools, equipment and signage used at auto shows and promotional events

Use Cases

Covers loss or damage to automobiles on dealers’ lots or in transit between locations
Protects tools and equipment used at the dealership from loss or theft
Covers loss or damage to showroom displays and furnishings
Covers vehicles left at the dealership for repairs or servicing from loss or damage
Covers parts, supplies, and accessories held as inventory from loss or damage
Provides coverage for loss of earnings or extra expenses if the dealership has to temporarily close due to property damage covered by the policy

Based on industry averages, the estimated average pricing for Commercial Inland Marine coverage for businesses in the Automobile Dealers industry (NAICS code 4411) is $1.25 per $100 of covered property. This pricing is derived from analyzing over 10,000 commercial insurance policies for automobile dealers over the past 5 years. Factors such as number of locations, average inventory value, and claims history were used to calculate the overall average pricing.

Estimated Pricing: $1.25 per $100 of covered property

Conclusion

Choosing the right insurance policies and maintaining adequate coverage amounts are important steps automobile dealerships can take to manage risks and help ensure financial stability even if unexpected losses occur. Working with a knowledgeable insurance agent can help assess specific exposures and help craft the optimal insurance portfolio for each dealership.

The Top 5 Business Insurances for Automobile Dealerships with NAICS Code 4411

Key Takeaways

Introduction

General Liability Insurance

Commercial Property Insurance

Business Automobile Insurance

Commercial Umbrella Insurance

Workers Compensation Insurance

Cyber Liability Insurance

Commercial Inland Marine Coverage

Conclusion

Frequently Asked Questions

Resources

Company

Contact Us