This is the first of a 3 part series about business insurance, mainly focusing on vehicle dealers.
Here we are again talking about dealer coverage for dealer vehicles that are in inventory and for sale. There continues to be misunderstandings about what is covered, what is not covered and how much may or may not be covered. The answer is not totally cut and dry. Each policy and each insuring company may have different answers for each situation.
We will attempt to summarize what may be covered with Dealers Open Lot insurance. Each dealer must read their own policy and see what it says or discuss in some detail with their insurance agent or call us for further clarification.
In general, Garage Physical Damage or Dealers Open Lot (DOL) will provide coverage for loss or damage to your autos in inventory. Coverage is divided into two parts. Collision pays, subject to the deductible, for the damage to “covered autos” collision with another object or its overturn.
The second part of the coverage provides coverage for “other than collision loss” companies give dealers a choice. You can purchase the broadest “other coverage” known as Comprehensive. This provides coverage, subject to a deductible, for all other perils not covered by collision. Some companies only offer a more limited known as Specified Causes of Loss. If you have purchased this coverage, and subject to your deductible, the company will pay for a “covered auto’s” damage only if the cause of loss is specifically described as being covered. These “covered” perils may include the following: Fire, Lighting or Explosion; Theft; Windstorm, Hail, Earthquake; Flood; Mischief or Vandalism; the Sinking, Burning, Collision or Derailment of any conveyance transporting the “covered auto”.