Risk Management Ideas for Car Dealerships

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management liability

Operating a car dealership comes with some unique risks not faced by other companies. In addition to management liability, car dealerships have a variety of buildings, valuable merchandise and service stations. These risk management ideas can help you reduce the liabilities of your business.

Management Insurance

A car dealership manager has access to the bank accounts, personal information of clients, keys to the vehicles and locks and unlocks the facility. As referenced on www.usrisk.com/, directors and officers insurance isn’t the only coverage option you may need. Certain classes of managers may need additional insurance coverage such as fiduciary, loss control services and crime.

Holding Areas

Help deter theft by storing vehicles overnight in holding areas. Not only may a criminal try to steal a car, but they may just take some parts off of it to sell. A thief may appear multiple times to the same location. Holding areas can help prevent thieves from having access to vehicles.

Security Procedures

A security system helps deter theft of the physical property at the dealership. However, it is crucial that dealerships also protect themselves against EFT fraud. Someone can electronically transfer funds irreversibly putting your business at liability without the right safeguards in place.

Don’t let a claim against management liability put your auto dealership at risk. Look at these ways to reduce your business’ risk.

This post was written by , posted on November 22, 2019 Friday at 3:34 am