No matter what line of business you’re in, every small business owner faces a series of risks. Auto retail businesses are no different. That’s why basic coverages like commercial property insurance and liability insurance are so important, but they aren’t always enough – sometimes additional coverages may be necessary.
For example, if you run a car dealership that provides tune-up services or adds and removes winter tires from customers’ cars, you may want errors and omissions (E&O) coverage. A small mistake could lead to a large problem for a customer, especially when dealing with their vehicle, and you could be on the hook for the loss. Errors and omissions coverage can help cover the costs of lawsuits that come from errors or omissions in your work or your products.
Many business owners also fail to consider what will happen to their business following a disaster. Say your business experiences a large fire. Commercial property insurance will help with the repair and replacement costs of your building, but what about all the money you’ll lose because you have to close your business temporarily? Business interruption insurance is designed to help you collect the income you would have expected to generate were it not for the disruptive event, so you can keep up with recurring bills or payroll.