To protect themselves against the risks of their business, new motor vehicle sales companies should have business insurance. These are just a few reasons why motor vehicle sales companies should have business insurance.
- Liability Protection: Customers who purchase defective vehicles or vehicles with manufacturing or design defects may file liability claims against new motor vehicle dealerships. Liability insurance may provide protection for legal fees, settlements and damages to the claimant.
- Property Damage: Motor vehicle sales companies may suffer property damage from theft, natural disasters, and other unforeseen events. Insurance can cover the cost of repairs and replacements for damaged property.
- Business interruption: In an unplanned event, such as a fire or natural disaster, insurance for business interruption can be financial aid to help cover lost income.
- Workers’ Compensation: Employees who are injured while working at a motor vehicle dealership may also file workers’ compensation claims. Workers’ compensation insurance may provide coverage for medical expenses and lost wages.
There are many things that could go wrong when you’re selling new motor vehicles.
- Vehicle defects: Manufacturer or design flaws in new motor vehicles can cause injury to customers or property damage. This could lead to business liability.
- Fraud: A salesperson may misrepresent the vehicle’s condition or terms of sale. This can lead to customer dissatisfaction and possible legal claims.
- Inventory damage or theft: New motor vehicles can be stolen or damaged, which could lead to lost income or property damage.
- Business interruption: Störungs in the operation of a new motor vehicle sales company can result in lost income or decreased productivity.
- Employee Injuries: Workers may sustain injuries while at work, which could lead to workers’ compensation claims or lost productivity.
To sum it all up, motor vehicle sales companies should have business insurance in order to cover the risks associated with their operations. This type of business can be vulnerable to liability claims, vehicle defects and misrepresentation, theft or damage to inventory, business interruptions, employee injuries, and other problems.
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If you are in need of New Motor Vehicle Sales insurance or any other business insurance in Texas, email or call us today for a quick and free quote. If service business owners in Houston, Dallas, Fort Worth, Austin, San Antonio, El Paso, and everywhere else in Texas.