What Coverages Do Motorcycle Dealers Need: Beginner’s Guide

As a motorcycle dealer, it is crucial to protect your business from unexpected events that could lead to financial loss or legal troubles. Insurance coverage plays a vital role in safeguarding your dealership against various risks, ensuring peace of mind and continuity of operations. 

It is essential to know what types of coverage every motorcycle dealer needs. In this article, we will explain:

  • Insurances that are required for motorcycle dealers 
  • How to protect your business with product liability insurance
  • The importance of workers’ compensation

FULL List of Essential Coverages Every Motorcycle Dealer Needs

Explore what insurance types are essential for motorcycle dealers to safeguard against claims of property damage or bodily injury to third parties

1. General Liability

General liability insurance is a fundamental coverage that all businesses, including motorcycle dealers, should have. This type of insurance protects against claims of bodily injury or property damage that may occur on your dealership premises or as a result of your business operations.

Having general liability insurance can shield your dealership from the financial repercussions of: 

  • Lawsuits
  • Medical expenses
  • Legal fees stemming from accidents involving customers or third parties

2. Property Insurance

Property insurance is essential for safeguarding the physical assets of your motorcycle dealership, including: 

  • Buildings
  • Inventory
  • Equipment
  • Signage

 In the event of a fire, theft, vandalism, or other covered peril, property insurance can help cover the costs of repairing or replacing damaged or stolen property.

3. Commercial Auto Insurance

Commercial auto insurance is imperative for motorcycle dealers who use vehicles for business purposes, such as:

  • Test rides,
  • deliveries, 
  • or transportation of inventory. 

This type of insurance provides coverage for accidents, theft, and damages involving vehicles owned or operated by your dealership.

By having commercial auto insurance, you can protect your dealership from the financial consequences of auto-related incidents and ensure that your business can continue to operate smoothly.

4. Product Liability Insurance

Product liability insurance is essential for motorcycle dealers who sell and distribute motorcycles and related products. This coverage protects your dealership from claims alleging that a defective product you sold caused harm or injury to a customer.

Product liability insurance can help cover the costs of legal defense, settlements, and damages awarded to customers in product liability lawsuits, shielding your dealership from substantial financial losses.

5. Workers’ Compensation Insurance

Workers’ compensation insurance is vital for ensuring that your dealership complies with state laws and provides financial protection for employees who sustain work-related injuries or illnesses. 

This coverage helps cover: 

  • Medical expenses
  • Rehabilitation costs
  • Lost wages for employees injured on the job

By having workers’ compensation insurance in place, you demonstrate your commitment to the well-being and safety of your employees while safeguarding your dealership from potential legal liabilities and financial burdens associated with workplace injuries.

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Protect Your Dealership with Essential Insurance Coverage

Insurance coverages are essential for protecting your motorcycle dealership from unforeseen risks and liabilities

It is advisable to work with an experienced insurance agent to assess your specific insurance needs and tailor coverage options that align with the unique risks and challenges faced by your motorcycle dealership.

Safeguard your motorcycle dealership with Insuranks!

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