Start with the purpose of the coverage
Dealers open lot coverage is designed for covered loss or damage to dealership inventory. Peak values, locations, weather, theft controls, transit, valuation, and deductibles should be evaluated carefully.
Exposure size and business activity
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Loss experience and risk controls
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Limits, deductibles, and optional protection
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
What the policy may help address
Vehicle inventory physical damage
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Covered weather and catastrophe losses
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Theft and collision exposures subject to the policy
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Details to examine for this decision
- Average and peak inventory by location
- Wind, hail, flood, theft, false pretense, and collision wording
- Reporting provisions, valuation, deductibles, and off-site inventory
Information to prepare
A complete submission helps distinguish the account and reduces avoidable follow-up. Prepare current records rather than relying on estimates from a prior policy period.
- Inventory values by location and month
- Floor-plan requirements and valuation method
- Security, key controls, catastrophe plan, and loss history
Questions the review should answer
How does the program address average and peak inventory by location?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address wind, hail, flood, theft, false pretense, and collision wording?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address reporting provisions, valuation, deductibles, and off-site inventory?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
Frequently asked questions
What should a business prepare for a Dealers Open Lot cost factors review?
Useful starting information includes inventory values by location and month, floor-plan requirements and valuation method, security, key controls, catastrophe plan, and loss history. The specialist may request additional details based on the operation and available insurance markets.
Why should Dealers Open Lot be reviewed separately from other policies?
Dealers open lot coverage is designed for covered loss or damage to dealership inventory. Peak values, locations, weather, theft controls, transit, valuation, and deductibles should be evaluated carefully. The policy should also be coordinated with related property, liability, vehicle, people, contract, and continuity exposures.
Coverage descriptions are general and do not amend a policy. Eligibility, availability, limits, deductibles, exclusions, definitions, and terms vary by risk and insurance market. Actual policy documents control.