Which type of liability insurance would be necessary for an auto dealer?

A commercial general liability insurance policy is essential for an auto dealer because it provides coverage for claims related to bodily injury, property damage, and personal injury that may occur in the course of business operations. Auto dealers face unique risks such as accidents involving customers on their property, potential damage inflicted on customers’ vehicles during service, and other liabilities stemming from their business activities.

This type of insurance not only protects against accidents but can also cover legal fees if a customer sues over an incident. Since auto dealers are commercial entities, personal auto insurance would not suffice, as it only covers personal and not business-related liabilities. Professional workers liability pertains to risks related to professional advice or services, which is not typically relevant in the context of auto sales. Commercial property liability is focused on protecting physical assets, but it does not address the comprehensive liability risks associated with customer interactions and operations that an auto dealer faces. Thus, commercial general liability is the most appropriate coverage for an auto dealer, ensuring broad protection against various liability risks inherent in their business.