Connect coverage to the actual operation
Wholesale dealers may move vehicles among auctions, storage sites, transporters, repair vendors, and other dealers. The review should distinguish physical locations, custody, drivers, transit, inventory values, and any retail or consumer-facing activity.
Risks to review
- Inventory in transit or at auctions and off-site lots
- Dealer plate and permissive-driver liability
- Vehicle theft, false pretense, title, and payment fraud
- Undisclosed retail, repair, storage, or consignment exposure
Information to prepare
- Auction, wholesale, retail, and export sales breakdown
- Inventory locations, transport methods, drivers, and dealer plates
- Average and maximum values in custody or transit
- Title, payment, buyer, seller, and transporter controls
Frequently asked questions
Does an auction's insurance cover a wholesaler's vehicles?
Do not assume it does. Auction contracts, custody, causes of loss, deductibles, and each party's insurance must be reviewed.
Why disclose occasional retail sales?
Consumer transactions can create different premises, test-drive, disclosure, title, financing, and errors-and-omissions exposures.
Coverage descriptions are general. Eligibility, availability, limits, deductibles, valuation, exclusions, and policy terms vary by operation and insurance market. Actual policy documents control.