If you have decided to get into the powersports dealership business, you’ve made a great decision as this sector is set to grow over the next few years. This is a significant investment, however, and there are many things you have to prepare for. Purchasing the proper insurance is one of them. Powersports insurance can protect your business in many ways and is essential for anyone starting this kind of business. Let’s take a look at why powersports dealer insurance is so important.
Damage to Your Inventory
Your inventory is your most precious asset, and you have to protect it at all costs. However, many things can damage it that are totally out of your control, even if you take all the precautions. Natural disasters like hail, strong winds, or floods could destroy part or all of your inventory. You can see how disastrous that could be for your business and would mean the end of it in many cases. Powersports dealer insurance can cover all of this and will allow you to sleep a bit better at night.
Theft and Vandalism
Another way your inventory could be damaged would be through vandalism. That could be from a random person, but it could also be from someone who has a personal grudge against you. This could be related to a business transaction or not. It’s not uncommon for dealers in this field to face extortion, and insurance is one of the best ways to deal with this.
Then there’s theft. Not only are ATVs and powersports vehicles a hot commodity among thieves, but they are often easier to steal than other types of vehicles because of their lightweight. Theft is also more common in densely populated areas.
Liability Risk
Operating a powersports dealership comes with many liability risks that many people overlook. For instance, you might never know what happens during a test drive. Someone might make a wrong maneuver or injure themselves, and now you might be on the hook for the bill.
Or maybe you or one of your employees conducts a repair on the vehicle and it’s faulty. This could lead to serious accidents or even death. In this case, you would also be liable. Only insurance can protect you in those cases.
Product liability is another thing you have to worry about. Maybe you sold a part of a vehicle that has some sort of defect. Even if the company who built the vehicle is responsible, you could still be held liable for selling it.
Protects Against Disruption
Another great thing about powersports insurance is it can cover for lost income if you suffer a business disruption. It will cover expenses and lost income in case a catastrophic event happens. It will also cover your employees’ salaries.
These are all reasons why you should start looking into powersports dealer insurance today if you want to build a dealership. It’s something you won’t be able to avoid and will give you the peace of mind needed to concentrate on your operation.