Risk Theory offers the Dealer Open Lot Vehicle Inventory Insurance Program to help independent agents and brokers place physical damage coverage for auto dealership clients. Administered by Risk Point, this program provides tailored protection for the open-lot exposures of automobile, truck, and motorcycle dealers, with underwriting and claims services focused on dealer operations.
Ideal Accounts and Eligibility
This program fits both franchised and non-franchised dealerships that maintain active vehicle inventory on lots or in storage. It accommodates new and used car dealers, truck dealers, and motorcycle dealers — from larger high-volume franchises to smaller independent operations — where dealers prioritize straightforward administration and responsive claims handling.
Coverage Highlights and Advantages
- Available to franchised and non-franchised auto, truck, and motorcycle dealers.
- Weather loss aggregate deductibles to reduce exposure to catastrophic events.
- Economic loss protection up to $2,500 for new vehicle collision damage or odometer mileage changes due to theft.
- False pretense coverage with a generous annual sublimit of $200,000.
- Spot delivery coverage to protect vehicles delivered before financing is finalized.
- Coverage for stored "off lease" vehicles included.
- Unique aggregate deductible available on collision losses — an uncommon market offering.
- Dealer holdback protection for total losses of new vehicles.
- Margin clause option to increase payable limits to 125% of the declared limit (excludes flood and earthquake).
- No monthly value reporting required, streamlining administration for dealers.
- Flexible payment plan: 15% down with 10 monthly installments.
- Loss prevention tools such as AccuWeather Solutions early warnings are available.
- Claims and loss control are managed by Risk Point from Dallas, Texas for consistent service.
- Program commissions are available to appointed producers.
Underwriting Notes
Risk Point looks to write dealers who demonstrate disciplined inventory management and reasonable risk controls. There is no published minimum premium; submissions are reviewed on dealership size, location, inventory mix, and historical loss activity. The program is designed to minimize administrative burden with simplified reporting and straightforward policy terms.
Territorial Availability
The Dealer Open Lot Vehicle Inventory Insurance Program is available in most states, including high-volume markets such as TX, FL, CA, NY, and IL. Risk Theory offers the program on an admitted basis in most available states; coverage is accessible in over 48 states plus Washington, D.C.
Why Place Dealer Open Lot Business with Risk Theory
Risk Theory — through its Risk Point division — brings focused dealer inventory expertise, in-house claims handling, and loss control services tailored to dealer needs. The program’s flexible terms, limited reporting requirements, and unique coverages such as aggregate collision deductibles and spot delivery make it a competitive option for agents placing dealer open lot risks.
Agent examples: You might have a client running a midwestern used-truck operation that wants broader weather protection without monthly reporting, or a coastal motorcycle dealer seeking stronger false-pretense and spot-delivery coverages. Both scenarios align with this program’s appetite and service model.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Franchised and non-franchised dealers selling cars, trucks, or motorcycles are a primary fit. The program accommodates both large franchise operations and smaller independent dealers with open-lot exposures.
Is monthly reporting of inventory values required?
No. Dealers are not required to submit monthly inventory value reports, which reduces administrative workload for both the agent and the client.
What is the margin clause and how does it help my client?
The margin clause increases the payable limit to 125% of the declared limit when inventory values exceed the stated limit at loss, helping protect against under-declaration. It is not available for flood or earthquake losses.
What kind of payment plan is available?
The program offers a payment plan of 15% down with the remaining balance payable in 10 monthly installments to help dealers manage cash flow.
Who handles claims and loss prevention services?
Claims are handled by Risk Point from their Dallas, Texas office. Loss prevention resources such as AccuWeather Solutions early warning alerts are available to help dealers mitigate weather-related exposures.
Need help placing an account? Connect with a market specialist.