Michigan Snowmobile Dealers Insurance Policy Information
Michigan Snowmobile Dealers Insurance. Snowmobiles can be used for an exhilarating hobby, a competitive sport, or they can be used professionally to provide emergency services or to perform certain tasks, such as tending to parklands or farmlands in the winter.
Whether they're used recreationally or professionally, snowmobilers a dealership where they can purchase the gear and equipment they need.
As the owner and operator of a snowmobile dealership, you are delighted to provide your clients with the products and assistance that they need. However, while your business may be fun and exciting, there can also be a lot of risks associated with operating a snowmobile dealership.
Snowmobile dealers sell new and/or used snowmobiles and generally provide financing and insurance for purchasers. Most sell parts and accessories, and provide repair and body work for snowmobiles and other recreational vehicles, and offer renting and leasing.
Some snowmobile dealers also sell and service other types of motorized recreational vehicles, such as all-terrain vehicles. Most dealerships purchase new snowmobiles directly from manufacturers, financing the purchase through arrangements with either the manufacturer or a bank.
Used snowmobiles are generally trade-ins from customers purchasing newer models, or from auctions. While a selection of snowmobiles may be displayed in a showroom, most are stored in open lots outside the building.
In order to protect yourself from unexpected - and costly - risks, investing in the right type of MI snowmobile dealership insurance coverage is an absolute must. In this guide, you'll find out more about the importance of Michigan snowmobile dealers insurance as well as what type of policies you'll need to carry.
Michigan snowmobile dealers insurance protects your dealership from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Why Do Snowmobile Dealers Need Insurance?
Just like other business owners, as a MI snowmobile dealership, you are exposed to a lot of risks. Some of those risks are similar to the risks that business owners in all types of industries face, while some are unique to your particular industry. Also just like any other business owner, you are liable for any incidents that may arise.
If a third-party were to suffer an injury on your property, a client were to claim that you damaged their snowmobile, there was a data breach in your computer system, or your dealership and inventory were damaged in a fire, you'd be responsible for all of the related expenses.
Those are just of examples of the things that could go wrong, and the costs that are associated with any issue that you are liable for can be exorbitant.
If you are properly insured, instead of having to pay unexpected and hefty expenses out of your own pocket, your insurer would cover them those expenses for you. In other words, by having the right type of Michigan snowmobile dealers insurance coverage in place, you can avoid substantial financial losses.
Not to mention the fact that dealers of all types of motorsport equipment - including snowmobiles - are legally required to carry certain types of insurance.
What Type Of Insurance Do Snowmobile Dealers Need?
The specific types of coverage you'll need to carry to protect yourself, your business, your employees, and the people you serve depend on the specifics of your dealership.
Where your operation is located, the size of your dealership, how many people you employ, and the extent of your inventory are just a few of the factors that will impact the type of insurance coverage you'll need.
Examples of some of the Michigan snowmobile dealers insurance coverages that you'll likely need, however, include the following:
- Cyber Liability - There's no doubt that you rely on a computer system to assist you with operating your snowmobile dealership. From processing and placing orders, to ordering new inventory, your computers store a lot of personal information. If a data breach were to occur, cyber liability insurance would help to protect the related expenses.
- Commercial General Liability - This coverage provides coverage for third-party personal injury and property damage claims. If a customer were to slip and fall on your showroom floor, break a leg, and file a lawsuit against you, commercial liability insurance would help to cover the related expenses, including legal fees and any compensation that you may be required to pay out.
- Commercial Property - This coverage protects the physical structure of your dealership and/or garage, as well as the contents within these buildings from acts of nature, theft, or vandalism. If someone broke into your dealership and stole inventory, for example, this policy would help to cover the related costs.
- Workers' Compensation - This policy will help to cover the costs that you may face if your employees were to sustain a work-related injury or illness. It will not only help to pay for their medical care, but it will also compensate them for lost wages if they are unable to work as a result of their injuries or illnesses.
These are just a few types of Michigan snowmobile dealers insurance coverage you should consider for your MI snowmobile dealership.
MI Snowmobile Dealerships' Risks & Exposures
Auto dealers liability exposure is high due to the public access to the premises. To prevent slips and falls, floor coverings inside the showroom should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring.
Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. Waiting areas should be provided for customers whose snowmobiles are being repaired. Customers should not be permitted access to the service area.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises is open after dark, there should be adequate lighting and appropriate security for the area.
There should be a disaster plan in place for unexpected emergencies. Snowmobiles in open lots can pose an attractive nuisance. Chains and fences should be in place to prevent entrance to the dealership after hours.
Environmental impairment exposures can be significant due to the storage of fuel in underground fuel tanks and the disposal of used oils, solvents and other hazardous wastes from service and repair operations. All tanks and pipes, underground or above, should meet state or federal regulations and be routinely tested for leakage.
Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing vehicles.
Contracts should be in place to dispose of all environmentally dangerous chemicals. If there are underground storage tanks, a UST policy will be needed.
Workers compensation exposure is moderate from repair and maintenance operations. Employees performing maintenance or repair work on customers' vehicles should be properly trained. Employees can incur injuries from slips, falls, back sprains, strains and hernias, hearing impairment from noise, and foreign objects in the eye.
Welders may suffer burns. Repair areas should be properly ventilated. Proper safety equipment is required. Hoists need to be regularly inspected to prevent vehicles from falling off. The proper use of lifting techniques of dollies should be encouraged.
Refueling should be done only in well-ventilated areas to minimize inhaling of fumes. Information regarding chemicals should be available to employees along with early warning signs of problems. Test drives, pickup, and delivery of customers or vehicles can result in injury due to vehicular accidents or running on rough terrain.
Personal injury exposures include allegations of discrimination, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.
Repair operations and sales of used vehicles are the major products/completed operations exposures. Compliance with all manufacturers' instructions is critical. There should be a check-off procedure in place prior to the sale or release of vehicles to the customer to prevent the return of the vehicle with any vital functions not working properly.
Commercial auto exposure is high due if employees are allowed to drive demonstrator models or if customers are permitted to test drive snowmobiles off the premises. All employee drivers should have valid licenses with their MVRs regularly checked.
All vehicles must be regularly maintained with records retained. There should be written procedures for personal and permissive use of vehicles furnished to employees. For test drives, there must be set procedures, such as salespersons accompanying the customers.
In order to prevent the conversion of the vehicles, driver's licenses and other forms of identification should be verified in advance of the customer removing the vehicle from the premises.
If the dealership rents snowmobiles or other recreational vehicles, they should keep a copy of the renter's driver's license and proof of insurance. The rental contract should identify all drivers and state that unlisted, unlicensed, or minor drivers are not permitted to operate the vehicle.
It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the snowmobile to limit the business's exposure to vicarious liability only. If a collision damage waiver is offered, the customer's signature is needed to document whether this was purchased or declined.
The customer should also be required to sign a pre-inspection form to minimize disputes when the snowmobile is returned with damages.
Garagekeepers exposure is from damage that can occur to customers' snowmobiles or other recreational vehicles left with the dealership for servicing or repairs. Keys to customers' vehicles should be kept in a locked box to prevent unauthorized access. Proper identification required to prevent handing a customer's vehicle to the wrong owner.
Property exposure is high due to flammable fuels, paints, lubricants, oils, degreasers, and solvents used in the repair operations. These must be properly labeled, separated, and stored away from combustibles. Spray painting should be in spray booths with good ventilation, UL-approved wiring and fixtures, and adequate controls.
Welding is often a part of the repair and body work operation that needs to be evaluated for proper handling of the tanks and gases.
It should be done away from the other operations with either a separate room or flash/welding curtains. Smoking should be prohibited. Poor housekeeping is a serious fire hazard. Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire. Work areas must be cleaned regularly and trash removed from the building. Snowmobiles and their parts are target items for thieves.
Appropriate security controls must be taken including physical barriers such as chains, fences, or gates, lighting to deter access to the premises, and an alarm system that reports directly to a central station or the police department.
Business income and extra expense exposures are high as replacement facilities may not be readily available.
Inland marine exposures are from accounts receivable if the dealership offers credit, computers used to monitor inventory and provide diagnostics, floor plan coverage for vehicles furnished by manufacturers and held for sale, goods in transit, signs, and valuable papers and records for customers', vendors', and manufacturers' information.
Backup copies of all records, including computer records, should be made and stored off premises. Vehicles stored in open lots are particularly susceptible to damage by hail, wind, flood, vandalism, and theft. Lots should be well lighted with chains, fences or gates to prevent access and transport.
Most models should be kept inside. An alarm system that reports directly to a central station or the police department should be used. Security guards may be appropriate in some areas.
Crime exposures are from employee dishonesty, forgery or alteration, theft of money and securities, computer fraud, money orders, and counterfeit paper currency. Background checks, including criminal history, should be performed on all employees handling money.
Dealers' operations involve a number of transactions and accounts that can be manipulated. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements, and reconciling bank statements.
Physical audits should be conducted at least annually. Theft of money and securities prevention requires controls of monies kept in the cash drawers and regular bank drops.
Michigan Snowmobile Dealers Insurance - The Bottom Line
To learn more about what kinds Michigan snowmobile dealers insurance policies you'll need, what limits your dealership needs - speak with an experienced insurance broker who understands snowmobile dealers.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Auto Service & Repair Insurance
Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.
- Auto Dealers
- Auto Detailing & Mobile Car Wash
- Auto Dismantlers
- Auto Garage
- Auto Glass Repair Shops
- Auto Paint Shops
- Auto Service Repair
- Auto Supply Parts Store
- Car Rental
- Car Wash
- Gas Station
- Motorcycle Dealers
- Parking Lot
- RV Dealers
- Snowmobile Dealers
- Truck Rental
- Used Car Dealer
There is a Auto Service Risks Program is an enhancement of the Commercial Package Policy that is available to certain Auto Service Operations.
Automobile repair shops and garages offer a wide variety of mechanical services, from engine repair to tune-ups. The operation may be stand-alone or be part of another business such as an automobile dealership or filling station.
Gasoline stations are normally limited to the dispensing of gasoline, kerosene, diesel or fuel oil with incidental sales of auto accessories and pre-packaged snack food items. Larger gasoline stations may offer other services, such as auto repair, retail sales of food or auto parts, snack bar or restaurant, propane tank exchange, towing, or baths and overnight lodging facilities for truckers.
Car washes provide facilities for cleaning automobiles and other motor vehicles. Some are drive-through with either partially or fully automated conveyance of the vehicle throughout the operation. Hand washing, waxing, or interior cleaning of the vehicle may be offered, with customers sent to a waiting area. Damage to the customers' vehicles is the primary exposure as machinery and washes can break antennas, pull off stripping, crack glass and damage tires.
The three basic types of risks that are contemplated by the Auto Service Risks Program include:
- Repair Shops - operations primarily engaged in auto repair. This includes shops that do body, fender, radiator, ignition service and paint work.
- Service Stations- operations primarily engaged in servicing autos. The sale and installation of auto accessories are a part of this category as long as major engine or bodywork is not performed. Car wash facilities are eligible.
- Storage garages and other parking places.
The following classifications are specifically listed as eligible: Automobile:
- Quick Lubrication Services
- Repair or Service Shops
- Repair Shops–Self Service
- Car Washes–self-service and full-service
- Convenience Food/Gasoline Stores–self-service, full-service and combined
- Gasoline Stations–self-service, full-service and combined
- Parking–public-open air and not open air
Automobile, motor home, mobile home, trailer, and motorcycle dealers are NOT eligible for this program.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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