What is Truck Dealer Insurance? All You Need to Know

by | Apr 6, 2024 | Auto Insurance | 0 comments

Operating a truck dealer’s business is no joke. It involves managing costly inventory, a sophisticated customer base, and property, and stressing about the risks can lead to burnout. Ever wonder how all the hard work you put into your trucking business can boil down to this one factor: truck dealer’s insurance?

An insurance policy specifically made to suit your business needs and help protect your employees, your business, and your inventory in the case of nasty circumstances. In this blog, you will understand what dealer coverage includes and how it can help you read on.

What is Truck Dealer Insurance?

A truck dealer’s insurance is designed to cover dealerships that deal with motor and cargo trucks, selling, leasing, and buying motor trucks. The insurance helps dealerships protect themselves against different risks that may arise from the daily operations of the trucking business.

Types of Insurance Truck Dealers Business Needs

Types of Insurance Truck Dealers Business Needs?

Business Interruption/Income Lost 

The business interruption/lost income policy covers an incident that halts your business’s operation and, if not insured, results in lost income. As the name suggests, the interruption could be related to a vehicle breakdown or fire that makes it impossible to work as usual, specifically in the automotive industry. 

Truck dealers’ businesses, specifically those with heavy equipment trucks, have much on their plate regarding managing. The risks associated with heavy equipment and trucks are significant and require serious measures to protect your business interruption days. The lost income insurance will help your trucking business to be smooth and prevent any significant financial losses that can cripple your system.

Garage Liability/Umbrella 

This type of insurance is specific to automotive companies and primarily commercial truck dealerships, repair shops, and parking areas. It covers the general liabilities and damage claims that could result from the day-to-day operations of your truck dealerships.

Garage liability also covers property damage and any bodily injury to a client or employee’s vehicle in your lot. 

Contingent Liability Physical Damage for Truck Dealers

Although the name itself is confusing, physical damage covers specific incidents involving collision damage, accidents, vandalism, theft, fire breakout, and storm/bad weather for the trucks owned by the dealership. The policy will provide coverage for the repairs and replacement of the vehicle in case of any unforeseen damage mentioned.

EPL (Employment Practice Liability)

Employment practice liability policy provides protection, particularly against lawsuits and wrongful acts by employees working in the dealership business. It protects the fundamental rights of the employees while at work and during the contract.

Some of the most common employment practice-related claims are the following:

  1. Discrimination
  2. Sexual Harassment
  3. Wrongful Termination
  4. Retaliation
  5. Emotional Distress
  6. False Imprisonment 
  7. Breach of Contract
  8. Invasion of Privacy
  9. Wage and Hour 
  10. Third-Party EPLI

EPL (Employment Practice Liability) can also cover other forms of professional liability.

Dealer’s Error and Omissions 

As the name suggests, the dealer’s E&O insurance policy provides coverage when your company’s error or mistake leads to your client’s dissatisfaction and could result in a claim or lawsuit against your company.

For example, maybe your employee makes a mistake while servicing a client’s truck, completing the paperwork, or recording the truck’s history; the E&O coverage helps protect you in such cases.

Worker’s Compensation 

The worker’s compensation policy is crucial in the truck dealer’s coverage kit. The risks of injury and sickness while working in the garage or open lot are far higher than in any other workplace. It is a significant policy that allows your business to run smoothly in the case of an injury to your worker while on the job. 

Medical expenses are mainly covered by the worker’s compensation policy, which helps your business avoid going bankrupt due to a worker’s major surgery in case of a severe injury.

How Much is the Truck Dealers Insurance Costs

How Much is the Insurance Costs?

The cost of business insurance depends on several key points and needs of your business.

In most cases, the insurer company will provide you with a broker to help you decide on the policy for your business and the deductibles and premiums you’ll pay.

The general figure for general liability insurance is around $600 annually, but the median premium is less than $50 per month. This premium is variable and can differ significantly depending on your company’s type.

Why Do You Need a Truck Dealer Insurance Program?

Truck dealerships involve various pressing risks that negatively impact your business if not managed. Imagine these scenarios:

  • If an employee gets injured while working on your property, he/she will file a legal claim against you.
  • A storm hits your open lot and results in damaged inventory.
  • When loading hazardous waste material, an employee accidentally dumps a drum full of chemical waste into a drain. The groundwater is contaminated as a result, and thus, a claim can be filed against you.
  • A fire breaks out in one of your service garages, causing you to relocate to a temporary service area while the employees reconstruct the original place.
  • A windstorm could cause a tree to fall over your vehicle sitting in the garage.
  • An employee could trip while walking through the site.

The above scenarios require proper dealer coverage to protect your business, employees, and inventory financially.


Going through a reliable company’s truck dealer insurance program will help you realize how significant this step is in your business for trucking and dealerships. The insurer helps protect your business from going bankrupt in an unexpected event and helps operate the workflow without major disturbances.

Patience Noah

Patience Noah migrated to the United states in 2003 after the Liberian Civil War. She attended the University of Massachusetts Dartmouth and got her B.A in Marketing. After graduating college in 2013, she started her career in the insurance industry cold calling.

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