Motor vehicle supplies and new parts businesses face exposures from product defects, customer injuries, property damage and transportation risks. This coverage is designed to protect retailers, distributors and parts manufacturers that sell or handle new auto parts, accessories and related equipment. It complements other protections such as commercial liability, property coverage and commercial auto exposure to address the everyday risks of this industry.
What is Motor Vehicle Supplies and New Parts?
This insurance package typically covers liability and property exposures tied to the sale, storage and handling of new vehicle parts and accessories. Policies can include general liability for third‑party injury or property damage, commercial property for stock and buildings, and optional endorsements for equipment coverage and product recall or defect-related losses.
Who needs it
Businesses that commonly seek this coverage include retail auto parts stores, online parts distributors, specialty accessory retailers and manufacturers of replacement components. Operators such as small storefronts and larger warehouse distributors benefit from coverage tailored to inventory risks and transportation exposures; for storefront examples see Insurance for Auto and Truck Supply Stores.
What it typically covers
Core elements may include general liability (bodily injury and property damage), premises liability, commercial property for inventory and equipment, and commercial auto coverage for company vehicles. Product liability and completed operations cover claims arising after parts are installed. Some insurers offer participant accident or event liability extensions for demonstrations or installation clinics. For coverage options focused on parts and accessories, review Motor Vehicle Parts and Accessories Coverage.
Risk scenario: a faulty brake component sold by a parts retailer leads to a third‑party injury claim — product liability and general liability limits would be central to handling that loss.
Common exclusions or limitations
Standard exclusions often include intentional acts, punitive damages, wear-and-tear or maintenance-related failures, and losses caused by installation errors if performed by unlicensed technicians. Pollution, electronic data loss and certain transportation losses may require separate endorsements. Always review policy exclusions and underwriting factors before binding coverage.
Factors that influence cost
Premiums depend on annual sales, inventory values, location and fire protection, claims history, whether the business performs installations or repairs, and the extent of commercial auto operations. Products with higher safety or recall exposure, specialized performance parts, or significant interstate shipping can increase underwriting scrutiny. Manufacturers and larger distributors may need broader limits—see Auto Parts Manufacturing Insurance for program options for producers.
Proof of insurance & compliance
Many landlords, vendors and fleet partners require certificates of insurance showing specified liability and auto limits. Policies can be endorsed to add additional insureds or waive subrogation. Keep active certificates and understand state-specific requirements for commercial auto and workers’ compensation where applicable.
How to get a quote
To get a tailored quote, compile recent loss runs, a current inventory schedule, vehicle lists and details on any installation or repair services offered. Discuss coverages and limits with your broker or, if you prefer to engage directly, talk to your agent about specific endorsements and risk management options.
For more context on storefronts and parts-focused programs, you may also find helpful information at https://completemarkets.com/Auto-Parts-Manufacturers-Insurance/Storefronts/ and related storefront resources.
Frequently Asked Questions
Do I need product liability if I only sell parts and don’t install them?
Yes. Product liability protects against claims alleging a defect in a part you sold, regardless of who performed installation.
Will my commercial general liability cover a vehicle accident during delivery?
No. Liability arising from operation of owned or hired vehicles is usually covered under commercial auto policies, not general liability.
Can I add coverage for customer property while they wait for parts or service?
Yes. Some policies offer bailee or custodial coverage for customer property, but it may require an endorsement and additional premium.
Still have questions? Talk to a local insurance expert.