What is Truck Dealerships, New?
New truck dealership insurance is designed to protect businesses involved in selling new commercial trucks. These dealerships face unique risks related to their inventory, test drives, customer visits, and on-site equipment. A tailored insurance policy helps reduce exposure to property damage, liability claims, and transportation-related losses.
Who needs it
This type of insurance is essential for licensed dealers selling new trucks, including franchise dealerships, regional operators, and independent commercial vehicle retailers. It’s particularly important if your business has a showroom, service bays, or allows test drives—each of which introduces operational hazards and liability exposures.
What it typically covers
Coverage for new truck dealerships often includes:
- Dealers Open Lot Coverage – Protects inventory vehicles on the lot from theft, vandalism, hail, or collision damage.
- Garage Liability – Covers bodily injury and property damage arising from dealership operations, such as test drives or on-site accidents.
- Commercial Property Insurance – Insures buildings, signage, and fixtures against fire, storm, or other covered perils.
- Business Auto Coverage – Necessary for dealership-owned vehicles used in transport or delivery.
- Workers' Compensation – Required in most states for employee injury protection.
For broader protection, some policies also include business interruption coverage and equipment breakdown protection.
Common exclusions or limitations
Insurance for new truck dealerships may exclude losses from:
- Intentional damage or fraud
- Wear and tear on vehicles
- Unlicensed or unpermitted drivers during test drives
- Flood damage (unless specified)
Always review policy exclusions carefully to avoid unexpected out-of-pocket costs.
Factors that influence cost
Premiums vary based on several underwriting factors, including:
- Location and crime exposure
- Value and number of trucks on the lot
- Employee count and payroll size
- Loss history and claims experience
- Security systems and lot protection measures
For example, a dealership with poor lot lighting and no fencing may pay higher premiums due to increased theft risk.
Proof of insurance & compliance
Dealerships often need to provide proof of insurance to secure dealer licenses, manufacturer agreements, or floor plan financing. Certificates of insurance demonstrate that your business meets basic liability and property protection standards. Requirements vary by state and lender.
How to get a quote
To compare policies and find the right coverage for your truck dealership, speak with a commercial insurance specialist who understands dealership risks. They can help you assess coverage needs, identify exclusions, and find competitive rates. Get a quote today to protect your inventory, employees, and business operations.
For specialized protection of dealership inventory, consider Dealers Open Lot Insurance. If your dealership also manufactures or modifies trucks, Trailer & Work Truck Manufacturers coverage may apply.
Frequently Asked Questions
Is garage liability insurance the same as general liability?
No. Garage liability includes general liability plus coverage for on-site operations like test drives and service work.
Does this insurance cover damage during a customer test drive?
Yes, if garage liability coverage is included and the driver meets policy qualifications, such as proper licensing.
Can I add flood protection to my dealership policy?
Flood coverage is usually excluded but may be added through a separate endorsement or policy.
What happens if a hailstorm damages trucks on the lot?
If you have Dealers Open Lot Coverage, damage from hail would generally be covered, up to your policy limits.
How do I prove coverage to a floor plan lender?
Your insurer can issue a certificate of insurance naming the lender as an additional insured or loss payee as required.
Still have questions? Talk to a local insurance expert.