Montana Motorcycle Dealers Insurance Policy Information
Montana Motorcycle Dealers Insurance. There's nothing more thrilling than getting on the back of a bike, hearing he hum of a powerful motor, and taking in the scenery that surrounds you while feeling the fresh air against you.
Riding a motorcycle is certainly exciting, and in order to share that excitement with others who also enjoy riding, you've decided to open up your own dealership.
Motorcycle dealers sell new and/or used motorcycles, motorbikes, and scooters and generally provide financing and insurance for customers. Most sell parts and accessories, provide repairs and body work, and offer rental and leasing. Some provide towing services.
Some motorcycle dealers also sell and service all-terrain vehicles, personal watercraft, recreational vehicles, or snowmobiles.
Most MT dealerships purchase new motorcycles directly from manufacturers, financing the purchase through arrangements with either the manufacturer or a bank. Used motorcycles are generally trade-ins from customers purchasing newer vehicles, or from auctions.
While a selection of motorcycles may be displayed in a showroom, most are stored in open lots outside the building.
From selecting the location to ordering and stocking inventory, and from hiring a staff to marketing your new business, there's a lot that goes into starting up and running a motorcycle dealership. In all of the excitement and planning, however, there's one important element that you don't want to forget: insurance.
Insurance is what protects you, your dealership, your employees, and your clients from any issues that may be associated with your motorcycle dealership.
But what kind of Montana motorcycle dealers insurance coverage do you need to carry? Read on to find out the answer to this question and more.
Montana motorcycle 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 Motorcycle Dealers Need Insurance?
Whether you have a; BMW, Beta, Ducati, Gas Gas, Harley Davidson, Honda, Husqvarna, Kawasaki, Royal Enfield, SYM Motors, Suzuki, Triumph, Vespa, Yamaha or other brand motorcycle dealership - you are exposed to a lot of risks.
Some of those risks are similar to the risks that all business owners face, while some are unique to your particular dealer operations.
Examples of some of the things that you may be at risk for include property damage, personal injury or property damage claims, employee injuries, business interruptions, and more.
In the event that anything does go wrong, as the owner and operator of a MT motorcycle dealership, you will be responsible for paying any related expenses; expenses that can be quite exorbitant.
If you have the right Montana motorcycle dealers insurance coverage, instead of having to pay for the costs that you are liable for in the event that something does go wrong, your insurer will cover the expenses for you.
In other words, being properly insured is the best way to protect yourself from serious financial losses. Plus, being insured is required in order to legally operate a motorcycle dealership.
What Type Of Insurance Do Motorcycle Dealers Need?
Motorcycle dealerships need to invest in certain types of insurance coverage. There are also certain kinds of coverage that may be unique to your specific industry. To find out exactly what kind of insurance you need, speaking with a reputable agent who specializes in commercial Montana motorcycle dealers insurance is so important.
To give you a basic idea of the different types of coverage you may need, here's a quick overview of some of the most essential policies MT motorcycle dealerships will need:
- Commercial Property: To protect your dealership and anything inside of it from acts of nature, theft, or vandalism, you'll need commercial property insurance. This policy protects you from the damages or losses that are associated with a number of perils, such as fires, pipe explosions, storm damage, burglary, and vandalism.
- General Liability: For protection from third-party liability claims, you'll need general liability insurance. This policy covers the cost of third-party personal injury and property damage claims; for instance, if your dealership offers repair services and a client claims you damaged their motorcycle while it was in your care, this policy would help to cover any legal expenses, as well as any compensation that you may be required to pay.
- Workers Compensation: As an employer, you are responsible for any injuries or illnesses that your staff may develop while they are working. In the event that an employee does get injured on the job, workers' compensation will help to cover the cost of their medical care, as well as any wages that they may lose if they are unable to work while recovering.
- Business Interruption: Should you need to shut your dealership down for any amount of time, you could be looking at serious financial losses, as your income will be completely cut off. With business interruption insurance, your insurer will compensate you for any income that you may lose while you are unable to operate if, for example, your building is being repaired after a fire, a flood, or vandalism.
These are just a few examples of the type of Montana motorcycle dealers insurance coverage you should consider for your bike dealership.
MT Motorcycle 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 motorcycles 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. Motorcycles in open lots can pose an attractive nuisance. Chains and fences should be in place to prevent entrance to the dealership after hours.
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 its return with any vital functions not working properly.
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 inspected regularly in order to prevent vehicles from falling off. The proper use of lifting techniques and 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 motorcycles can result in injury due to vehicular accidents.
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 done 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.
Motorcycles 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 after hours, 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 manufacturers', vendors', and customers' information.
Backup copies of all records, including computer records, should be made and stored off premises. Motorcycles 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.
The more expensive models should be moved inside to the showroom. 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.
Commercial auto exposure is high if employees are provided with demonstrator model and the test driving of the motorcycles. All employee drivers should have valid licenses with their MVRs regularly checked. All motorcycles must be regularly maintained with records retained.
There should be written procedures for personal and permissive use of motorcycles 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 motorcycles, they should keep a copy of the renters' 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 motorcycle.
It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the motorcycle 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 motorcycle is returned with damages.
Garagekeepers exposure is from damage that can occur to customers' motorcycles left with the dealership for servicing or repairs. Keys to customers' motorcycles should be kept in a locked box to prevent unauthorized access. Proper identification should be required to prevent handing a customer's motorcycle to the wrong owner.
Montana Motorcycle Dealers Insurance - The Bottom Line
To learn more about the exact types of Montana motorcycle dealers insurance policies you'll need, how much coverage your dealership needs - speak with an experienced insurance broker who understands the unique risks of motorcycle dealers.
Montana Economic Data, Regulations And Limits On Commercial Insurance
Thinking about starting a new business? Already own a successful business and want to expand your operations? Whatever the case may be, if you want to experience as much success as possible, you are going to want to ensure you choose the best possible location for your specific industry.
No matter how outstanding your goods and services may be, if the area where your business is located doesn't offer a healthy climate that will support your company, chances are you'll struggle to succeed.
If you are thinking about opening up a business in Montana, being familiar with the state's economic trends can help you determine if it's a good location for you. It's also wise to know what type of insurance you'll need to invest in so that you can plan ahead.
With that said, below, we provide an overview of the economic trends in the state of Montana, as well as the commercial insurance requirements for business owners in the Treasure State.
Economic Trends For Business Owners In Montana
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Montana was 3.4%; that's 0.1% lower than the national average, which was 3.5% at the same time. This rate remained steady throughout the entire 2019 fiscal year, and it is expected to either continue remaining steady or improve in coming years, according to economists.
Unemployment rate is a vital statistic for business owners, as it indicates the job market of a location, which is a strong determining factor in the success of businesses in the region.
There are several areas throughout the state of Montana that are seeing economic booms and where businesses are flourishing. Among those locations include the following cities and the areas that surround them:
- Great Falls
Several industries are seeing substantial growth in MT; however, there are particular sectors that are really thriving in Montana. Among those sectors include:
- Advanced manufacturing
- Hospitality and tourism
- Information technology
- Oil and gas production
- Retail development
If you are considering opening a business in any of the above-mentioned areas, your chances of success in Montana are favorable.
Commercial Insurance Requirements In Montana
The Office of the Montana State Auditor, Commissioner of Securities and Insurance regulates insurance in MT. Montana mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Montana requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Montana also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
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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