Insurance for Powersport Dealers 

Power sports dealers sell and service motorcycles, ATVs, UTVs, snowmobiles, watercraft, and other recreational vehicles. These products carry unique risks — from theft and damage to liability during test rides or demos. Specialized insurance ensures you’re protected where a standard business policy may fall short.

Yes. At AutoRisk we specialize in Dealer Package Policies that consolidate all your necessary coverages under one streamlined program. This makes it easier to manage renewals, billing, and claims—and may reduce your total premium.

Dealers Open Lot (or Dealers Physical Damage) covers the inventory on your lot—new and used vehicles—for events like hail, theft, vandalism, or collision. It’s essential coverage for protecting your most valuable assets.

Power sports vehicles are often lighter, easier to steal, and used in higher-risk environments (off-road, water, snow). They may also be more prone to damage during demos and require broader coverage for accessories, customization, and specialized storage.

Premiums are influenced by:

• Lot location and size

• Security measures (fencing, cameras, alarms)

• Inventory value

• Loss history

• Employee driving records

• Number of locations
  AutoRisk works with top-rated carriers to find the most competitive rates for your risk profile.

Dealers Open Lot insurance covers your unsold inventory against losses from theft, fire, storm, or vandalism. Since powersports inventory often includes high-value units stored outdoors, this coverage is critical.

Yes, if you carry proper garage liability and demo coverage. Always confirm that test rides are specifically included in your policy, and enforce safety rules such as valid licensing, waivers, and helmets. Off-site demo events often require additional endorsements.

Coverage depends on your policy. You may need inland marine insurance or a commercial auto policy with on-hook coverage to protect units in transit.

Limits are based on the total value of your inventory, the type of units you sell, your location, your claims history, and whether you perform repairs, rentals, or demos. High-value or high-volume dealerships usually need higher limits.

• Garage Liability covers your operations — for example, if a customer is injured during a test ride or on your premises.

• Garage-keepers covers customers’ units left in your care for service, storage, or repair.

At least once a year, or whenever your inventory, operations, or services change (for example, adding watercraft sales, new demo events, or expanding storage capacity).

Information for Powersport Dealers