What is Open Lot Coverage and Why Do You Need It?

Physical damage insurance or “Open Lot” coverage is a type of insurance policy that protects your dealership from physical losses related to your vehicles. It can cover damage to vehicles caused by weather, theft, vandalism, collisions, and other types of accidents. But beyond protecting your inventory, open lot coverage also provides peace of mind knowing you are safeguarded against any potential losses. Let’s dive deeper into open lot coverage so you can determine if it’s the best option for you.

What Does Open Lot Coverage Cover?

Open lot coverage provides protection for the cars on your used car lot from perils like fire, windstorms, hail, vandalism, theft and more. Depending on the policy specifics, some coverage might also include protection from damages caused by customers while test driving vehicles. This type of coverage may also provide financial protection if you are found liable for damages related to any vehicles on your lot as well as additional expenses like towing services for disabled cars. Additionally, there may be coverage for certain parts and accessories that are attached to the vehicle when it is damaged or stolen.

What Are The Benefits Of Open Lot Coverage?

Having this type of policy in place can protect your dealership in the event that one or more of your vehicles is damaged or stolen while they are on your property. Without an open lot policy in place, you may be held financially responsible for any losses incurred during such events; however with proper coverage in place many costs associated with these events will be covered by the insurer. Not only does this provide financial protection for dealerships but it also minimizes the need to take out costly loans each time something happens to one of your vehicles on site. Additionally, being able to replace lost or damaged inventory quickly can help minimize downtime and ensure business continuity even after a loss incident has occurred.

Having an open lot insurance policy in place is a great way to protect yourself and have peace of mind knowing that should something happen to one of your vehicles while they are located at your lot they will be covered under an insurance policy instead of having to take out costly loans each time something happens. As a dealership owner it’s important to understand what this type of insurance covers and how it could potentially benefit you in the long run so that you can make an informed decision about whether or not this type of policy is right for you. By doing so you’ll be able to rest assured knowing that should anything happen to one or more vehicles onsite during business hours that all associated costs will be taken care off by the insurer without having to worry about taking out costly loans each time such incidents occur. So don’t wait- investigate open lot coverage today!

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