Losses covered under various sections of an Auto Dealer’s Policy

 
Coverage PartLoss Example
Covered Auto Liability CoverageAn employee of the auto dealer while performing a final inspection of an auto in inventory runs a red light and collides into a vehicle. This coverage will pay for the damage to the other auto, as well as for any expenses related to defending the claim.
Garagekeepers CoverageWhile waiting to be picked up, a customer’s auto is damaged as a result of vandalism. This coverage will pay for the damage and possibly a replacement auto while the auto is being repaired
Physical Damage CoverageAn auto in the dealer’s inventory is struck from the rear while being test driven. This coverage will pay for the repair.
General LiabilityThe dealer’s repair to a customer’s auto damaged by a collision was not done per the manufacturer’s specifications. As a result the auto’s structural integrity was compromised. This was discovered after the auto was involved in a collision with a deer. This coverage will pay for the additional damage to the auto as well as the bodily injury suffered as a result of the compromise in the auto’s structural integrity
Personal and Advertising InjuryAn auto dealer represents that customers will not pay a specific tax because the auto dealer is not in the taxing district even though this is not the case. A customer who finds that this is not the case sues. This coverage will not only pay for expenses related to defending the suit, but also any damage as the result of the incorrect representation.
Medical PaymentsA customer took a misstep on a stair and fell. An ambulance was dispatched, the customer was taken to the hospital and was treated for their injury. This coverage will pay for the ambulance and the treatment without regard to fault.
Acts Errors and Omissions CoverageA dealer sells a customer an auto and delivers title to the auto. The prior owner was a partnership and only one of the partners endorsed the title over to the dealer. The other partner alleges they still have an ownership interest in the auto. This coverage will pay for damages resulting from the defect in the title as well as any legal expenses involved.
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