Some try making money as motorcycle dealers instead of as car dealers. As a motorcycle dealer, it's crucial to protect your business from various risks and liabilities. Motorcycle dealer insurance provides comprehensive coverage to safeguard your dealership and assets. This article will explore the different types of insurance policies available for you and their coverage limits. Read on to discover the options that can help protect your business.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
This insurance is a fundamental coverage for you. It protects your dealership from claims of property damage, bodily injury, or advertising-related incidents. Coverage limits typically range from $1 million to $2 million.
Accidents involving customers on your dealership premises
Injuries sustained during motorcycle test drives
Property damage caused by your dealership's operations
Advertising claims and allegations of false advertisingÂ
HNOA coverage–Hired/non-owned auto coverage covers the accidents caused by a vehicle your motorcycle dealership hired or borrowed to transport goods, equipment, or employees
Completed operations coverage–This covers claims arising from work or services completed by the dealership
The product liability policy in your motorcycle dealer insurance program protects against claims arising from defective motorcycles or parts. Even if you carefully select reputable manufacturers, unforeseen defects can still occur, putting your dealership at risk. Product liability insurance covers legal expenses, settlements, and judgments resulting from such claims. Coverage limits for this insurance vary, but they usually range from $1 million to $5 million.Â
Accidents caused by defective motorcycle parts
Injuries resulting from faulty manufacturing or design
Claims related to inadequate product warnings or instructions
Recall expense coverage–The add-on provides coverage for expenses associated with product recalls, including notification costs, shipping and disposal expenses, and public relations expenses
Contractual liability coverage–This extends coverage for liability assumed under contracts or agreements with suppliers or other parties, ensuring that the dealership is protected from potential legal disputes
You can contact motorcycle dealer insurance providers specializing in commercial coverage for dealerships. Provide them with details about your business, and they will provide you with customized quotes that outline the cost and coverage options available to your dealership.
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $320,000 | $25,000/$500,000 | $75,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $75,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
This insurance is vital for you, ensuring protection against property damage and loss. The insurance covers your dealership's buildings, inventory, equipment, and other physical assets, whether due to fire or vandalism. Coverage limits can range from $250,000 to several million dollars.
Damage caused by storms, or other natural disasters
Stolen motorcycles or equipment
Business interruption due to covered property damage
Business interruption insurance–Provides coverage for lost income and ongoing expenses if your dealership is temporarily unable to operate due to a covered loss, such as fire, theft, or natural disasters
Equipment breakdown coverage–Protects against financial losses resulting from the breakdown of essential equipment or machinery used in your operations, covering repair or replacement costs
Commercial property insurance for motorcycle dealers ncludes coverage for inventory. In the event of damage due to fire, theft, or natural disasters, the insurance policy can reimburse the value of the damaged or lost inventory.Â
The coverage amount can be based on factors such as the cost of the inventory or its market value, and it's important to review the policy terms and limits to ensure that your inventory is adequately covered. Additionally, certain motorcycle dealer insurance programs may offer options for additional coverage specifically tailored to high-value or specialty motorcycles in your inventory.
