New Car Dealerships Insurance Ontario

Owning and operating a new car dealership can be a very rewarding experience, but protect your business with a specialized insurance program for your new car dealership

Get a Quote

In addition to risks common to every industry, such as theft and natural disasters, new car dealers face unique risks due to test driving, vehicle repairs, loaning of vehicles to customers and the presence of toxic and flammable chemicals.

The list below provides an overview of the auto dealer industry risks and more—helping you identify potential blind spots in your risk management and insurance programs.

What kind of insurance does a new car dealership need?

  • Property Insurance
  • Commercial Automobile Insurance
  • Liability Insurance
  • E&O Insurance
  • Crime Insurance
  • Inland Marine Insurance
  • Environmental Liability Insurance
  • Business Interruption Insurance

Property Insurance for New Car Dealerships

Significant property exposures are present in new car dealerships due to the presence of toxic or flammable chemicals and welding materials used for repairs, as well as the constant moving of vehicles around the property. Vehicles, tools and equipment, office supplies and the building itself are all at risk of being damaged during day-to-day operations.

Commercial Automobile Insurance for New Car Dealerships

Because car dealers allow customers to test-drive vehicles, transport vehicles between dealerships and lend vehicles to customers who are having their vehicles repaired, automobile exposures are abundant. While vital for operation, the improper use of a vehicle can lead to potential property damage and liability concerns for the dealer.

Liability Insurance for New Car Dealerships

Liability exposures at automobile dealerships can directly affect customer safety and, when injuries occur at your business, you could be held responsible. Accidents related to slips, trips and falls are a source of concern. Slippery or uneven surfaces, under-lit exteriors and poorly inspected vehicles can lead to accidents.

E&O Insurance for New Car Dealerships

Dealerships are at risk from errors and omissions exposures, which can come from customers who feel that there was a problem with a purchase, vehicle repair or other service from the dealership. Customers may claim that they were misled by an advertisement or lied to about the condition of a purchased vehicle, or that an employee made an error on the loan or lease papers. Additionally, customers may allege that the odometer was rolled back for a sale or forward after maintenance.

Crime Insurance for New Car Dealerships

Crime can be of particular concern to auto dealers because they often keep many for-sale vehicles sitting on an outdoor lot, which may be valuable on their own or contain parts that are of significant value to thieves. Dealers are also at risk of computer fraud, forgery or alteration, cash theft and employee dishonesty. In some cases, a dealer’s location and the type of vehicles they sell can increase their crime exposures.

Inland Marine Insurance for New Car Dealerships

You may not realize it, but inland marine exposures for auto dealers are vast. In fact, any property that’s unique or valuable, in transit, in your temporary care, stored at fixed (but movable) locations or used to transfer information represent an exposure. Following an incident that leads to property damage, vehicles held for sale, accounts receivable, computer equipment, vehicles stored in off-site lots, and data and records related to vehicle manufacturers/customers represent potential losses for your business.

Other Insurance Options for New Car Dealerships

Due to the presence of fuel tanks and toxic or flammable chemicals such as oil, grease, hydraulic fluid and other substances, auto dealerships must contend with the possibility of environmental liability in the event of a spill, fire or similar incident. Environmental incidents are particularly concerning for auto dealers because they can cause harm to the surrounding community, involve costly cleanup and often cause damage to a business’s reputation. What’s more, businesses that cause harm to the environment are at risk of incurring fines that can exceed hundreds of thousands of dollars.

Continuity is critical in business, and there are few things more important than continuous revenue and cash flow, particularly for small to medium-sized organizations. In fact, just one brief business interruption can be incredibly costly for an organization, often leading to serious reputational damages or long-term closures. Common interruptions for automobile dealers can include natural disasters, fires, vehicle recalls, cyber events, staff shortages and issues with vehicle manufacturers.

Protect Your New Car Dealership with an Ontario Insurance Broker

While the proper risk management practises can reduce certain exposures, no system is 100 per cent effective in ensuring an incident-free workplace. As a result, it’s all the more crucial to work with a professional Ontario insurance broker to not only assess your exposures, but secure the appropriate coverage as well.

Request a quote for your new car dealership insurance with Scrivens.

New Car Dealerships

 Insurance Quote

Enter the following information and one of our dedicated business insurance brokers will get back to you right away!

Name*
Email*
Phone Number
Please describe your insurance requirements:*
Thank you! Your submission has been received!
For immediate assistance, contact one of our professional insurance brokers: 613-236-9101
Oops! Something went wrong while submitting the form.
Protecting Your Business Against Online Fraud - Cyber Liability
Protecting Your Business Against Online Fraud - Cyber Liability
Online fraud is becoming one of the most popular forms of fraud among cybercriminals. Learn how to protect yourself and your business from online fraud.
Read More
Your Guide to Commercial Drone Use
Your Guide to Commercial Drone Use
Adding drone operations to any business is risky. Thankfully, there are ways to limit your risk to drone operations, including drone liability insurance. Read our complete guide to commercial drone use.
Read More
Preparing Your Business for Flooding
Preparing Your Business for Flooding
Neglecting to prepare your property for possible flooding can sink your business. Stay afloat with solid preparation and a thorough flood plan.
Read More
Contractors Pollution Liability: Insurance Solution To Protect Contractors Against Environmental Liabilities
Contractors Pollution Liability: Insurance Solution To Protect Contractors Against Environmental Liabilities
Contractors pollution liability insurance should be a part of every contractor's insurance solution. Protect against third-party bodily injury, death, and damage to property as a result of sudden or gradual environmental liabilities.
Read More
5 Common Types of Construction Fraud
5 Common Types of Construction Fraud
While you may think construction firms are not an attractive target for cyber criminals, the truth is no business is safe from cyber crime.
Read More
Why Design-Build Contractors Need Professional Liability Insurance
Why Design-Build Contractors Need Professional Liability Insurance
Design-build contractors face unique liability risks and must consider professional liability insurance to fill in gaps cause be general construction liability insurance.
Read More