Excess Dealers Open Lot
What is Dealers Open Lot insurance?
When it comes to car dealerships, their inventory often includes vehicles stored outside, which are at higher risk of being damaged or destroyed by a variety of hazards such as fire, lightning, hail, theft, or vandalism. Even vehicles stored indoors are also not immune to damage.
In such cases, Dealers' Open Lot Coverage covers physical damage to the vehicles in the inventory. This coverage not only provides financial protection from these risks but also covers damage from collisions or overturned vehicles.
What is Excess Dealers Open Lot insurance?
Excess Dealers Open Lot insurance is a policy that provides coverage limits exceeding the underlying physical damage coverage for vehicles owned by dealers and held in inventory for resale.
What does Dealers' Open Lot insurance cover?
There are two main components of Dealers' Open Lot coverage, collision coverage, and coverage for losses other than collisions.
Collision coverage under Dealers' Open Lot insurance policy provides reimbursement to the dealership for damages caused by a collision with another vehicle or object or by the vehicle overturning.
Non-collision losses under Dealers' Open Lot insurance policy depend on the policy and may include different sets of inclusions such as:
- Comprehensive coverage provides funds for any cause of loss that is not specifically excluded and is not covered under collision.
- Specified causes of loss coverage funds for specific incidents as defined in the contract. Common specified causes of loss include fire, lightning, windstorm, hail, explosion, flood, earthquake, theft, and vandalism.
- Fire and theft coverage covers vehicles if they are damaged or lost as a result of fire, lightning, explosion, or theft.
- False pretense coverage protects from losses that may arise due to fraudulent activities, such as someone selling a car that they do not own or not returning a car after a test drive. Although it may be excluded in a DOL policy, it can be added as an endorsement to your policy.
Contact an insurance agent for more information
For more information on Excess Dealers Open Lot insurance, consult with an insurance professional to determine the appropriate level of coverage for your business. Contact us and we can help you locate an insurance agent in your area.
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