What type of insurance must a dealership maintain?

Garage liability insurance is essential for a dealership as it provides coverage specifically tailored for the operations of automobile dealerships, including service and maintenance. This type of insurance protects against claims of bodily injury or property damage that may occur on the dealership's premises or during activities related to the vehicles they sell or service.

Dealerships typically have a significant amount of foot traffic and interactions with customers, which increases the risk of accidents. Garage liability insurance ensures that the dealership is financially protected in case of lawsuits or claims arising from injuries to customers or damages caused by vehicles that the dealership operates.

While other types of insurance, such as property insurance and comprehensive coverage, can be important for protecting physical assets and vehicles, they do not offer the specific protection needed for dealership activities. Personal injury protection is more focused on medical expenses for injuries regardless of fault and does not cover the broader liability risks that a dealership faces. Therefore, garage liability insurance is crucial for a dealership to manage its unique risks effectively.