RV Dealers Insurance Maine

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RV Dealers Insurance Maine Policy Information

ME RV Dealers Insurance

RV Dealers Insurance Maine. As the owner and operator of an RV dealership, you face quite a few risks. Not only do you have to make sure that your inventory is protected, but you also have to ensure the safety of your dealership, as well as your staff and anyone else you may enter your property.

In the event that something goes wrong, you'll be responsible for any related expense. In order to protect yourself from serious financial losses, investing in the right type of RV dealers insurance Maine coverage is an absolute must.

Recreational vehicle dealers sell new and/or used vehicles and generally provide other services, such as financing and insurance for vehicle purchasers. Most sell parts and accessories, provide repair and body work, and offer vehicle rental and leasing. Some provide towing services.

Most ME dealerships purchase new recreational vehicles directly from manufacturers, financing the purchase through arrangements with either the manufacturer or a bank. Used vehicles are generally obtained as trade-ins from customers purchasing newer models, or from auctions.

While a selection of vehicles may be displayed in a showroom, most are stored in open lots outside the building.

What kind of insurance coverage do RV dealerships need? Why is being insured so important?

Below, you'll find the answers to these questions so that you can properly protect yourself, your business, and the people who work with your dealership.

RV dealers insurance Maine protects recreational vehicle dealerships from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.

Why Do RV Dealers Need Insurance?

Just like any other type of business owner in any other industry, as an RV dealership owner, you are exposed to a number of risks. Some of those risks are similar to the risks that other businesses are exposed to; however, some of those risks are unique to your specific business.

For example, someone could steal or vandalize one of the RVs on your lot, your dealership could go up in flames, you could be forced to close down for a while, or one of your employees could get injured on the job.

No matter what happens, as the owner and operator of an ME RV dealership, you will be responsible for anything that goes wrong. The costs that are associated with property damages, medical care, and legal fees, for example, can be exorbitant. If you needed to pay those expenses out of your own pocket, you could end up in serious financial trouble.

By the right kind of RV dealers insurance Maine coverage, if something does happen, instead of having to pay the related expenses yourself, your carrier would cover them for you.

In addition to protecting you from serious financial losses, having the right type of insurance coverage ensures that you are compliant with local laws. RV dealerships are legally required to carry certain types of insurance; if they fail to, they could be hit with stiff fines and could potentially end up losing their business.

What Type Of Insurance Do RV Dealers Need?

There are quite a few different types of insurance coverage that RV dealers will need to carry. The exact type of insurance you'll need depends on the specifics of your dealership; where it's located, the type of inventory you carry, the size of your operation, and more.

Because insurance needs vary from dealership to dealership, consulting with an insurance agent who has experience with the unique needs of your specific type of business is important. To give you a basic idea of RV dealers insurance Maine coverages that most will require, however, take a look below:

  • Commercial Property: To protect your business property, including the buildings on your dealership, as well as the contents within those buildings, you'll need to carry commercial property insurance. This type of coverage protects you from certain perils, such as fires, pipe leaks, storm damage, vandalism, and theft.
  • Commercial General Liability: This policy offers broad coverage for third-party bodily injury and property damage claims that are caused by you or one of your employees. For instance, if a customer were to claim that you damaged their RV while it was in your care and file a lawsuit against you, this coverage would help to pay for your legal defense fees, as well as any compensation that you may be required to pay out.
  • Business Interruption: Should some type of event occur that would shutter your RV dealership for a period of time, business interruption insurance would help you recoup your income losses until you can reopen. For example, if there were a fire in your dealership, business interruption would compensate you for the income you might lose while your business is shut down during repairs.

These policies are just a few examples of the type of RV dealers insurance Maine you'll need to carry as the owner and operator of an ME RV dealership.

ME Recreational Vehicle Dealerships' Risks & Exposures

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. Recreational vehicles 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 recreational vehicles furnished by manufacturers and held for sale, goods in transit, signs, and valuable papers and records for manufacturers', parts suppliers' and customers' 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. 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.

Auto dealer liability exposure is high due to the number of visitors 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 vehicles 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. Vehicles 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.

Commercial auto exposure is high due to employees being provided with demonstrator models and customers who take vehicles for test drives. 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.

Towing presents a more serious exposure due to the potential for damage to the vehicles towed. All tow truck drivers must be experienced. Towing vehicles must be regularly checked, in particular, the hoists and tow bars.

If the dealership rents recreational vehicles, 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 vehicle.

It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle 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 vehicle pre-inspection form to minimize disputes when the vehicle is returned with damages.

Garagekeepers exposure is from damage that can occur to customers' 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 should be required to prevent handing a customer's vehicle to the wrong owner.

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, must 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 activities on vehicles. 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 and of dollies should be encouraged. Safety equipment should be provided.

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.

RV Dealers Insurance - The Bottom Line

As mentioned, in order to determine exactly what kind of RV dealers insurance Maine coverage you'll need to fully protect your dealership, speak with a reputable broker who specializes in commercial insurance.

Maine Economic Data, Regulations And Limits On Commercial Insurance

Made In Maine

You have a great idea for a business and you have developed excellent products and services that you are certain people will benefit from. You've also developed a viable business plan. Now you need to choose a place to start your company.

In order for your company to be as successful as possible, you need to choose a location that offers a favorable market for your specific business. After all, if the area doesn't offer a job force to support your operation or a target market that will purchase your products and services, you likely aren't going to succeed.

With that said, if you are thinking about starting a business in Maine, having an understanding of the state's economic trends is essential. It's also important to know what type of commercial insurance you'll need to carry. Below, we offer an overview of this information so that you can determine if ME is right for your business.

Economic Trends For Business Owners In Maine

Unemployment rate is a good indicator of a state's economic climate. The lower the rate, the more opportunities exist for business owners, as it suggests that there are ample job opportunities, and the more job opportunities, the more successful businesses there are in the region.

As per the Bureau of Labor Statistics, the unemployment rate in the state of Maine was 2.9% in December, 2019; that's 0.6% lower than the national average, which was 3.5% at the same time.

Additionally, according to economists, more employment opportunities are expected in the coming years, which will further reduce the unemployment rate.

While locations throughout the state offer opportunities for business owners, there are certain locations that are ideal for entrepreneurs. These locations include:

  • Bangor
  • Bar Harbor
  • Portsmouth
  • Augusta

These cities are the largest in the Pine Tree State, so it's understandable why they offer the best opportunities for businesses. While Maine is home to multiple industries, there are specific sectors that do particularly well here, including:

  • Agriculture
  • Construction
  • Education
  • Entertainment
  • Finance and insurance
  • Healthcare
  • Hospitality and tourism
  • Information technology
  • Manufacturing
  • Professional services
  • Real estate
  • Retail
  • Transportation

Therefore, if you are considering launching a business in any of these industries, Maine is likely a good location for your company.

Commercial Insurance Requirements In Maine

The Maine Bureau of Insurance regulates insurance in ME. Maine mandates very few forms of insurance coverage by law. They enforce worker's compensation.

Maine 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. Independent contractors do not count as employees, but if those contractors employ subcontractors, the subcontractors must be covered by a workers compensation policy.

Maine 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