When analyzing the insurance needs of a dealership, one of the thorniest problems is determining what needs to be covered for Auto Physical Damage Coverage, often referred to as Dealer's Open Lot Insurance (DOL).  DOL (also known as inventory Insurance, Floor Plan Insurance, Dealers Blanket, Comp and Collision or Dealer's Physical Damage Insurance) provides physical damage coverage for both new and used, motorized and non motorized units.  It can protect the respective interest of the Dealers and Lenders.  It is physical damage coverage that pays for damage to the Dealer's inventory and if needed, other company vehicles.  Coverage can be provided both on the lot and while driven.  In addition to the inventory, service vehicles and customer loaners can be included.  This coverage should not be confused with Garage Liability or Garagekeepers Legal Liability.

Often, a producer inexperienced in this area will look at the Declarations Pages of the expiring policy for guidance on what coverage and limits are needed.  This is not a reliable means.  Many times the dealership will have a separate policy or part of their DOL Coverage will be provided by the Floor Plan Finance Company such as GMAC, Ford Motor Credit, Chrysler Credit, Nissan Motor Credit, or in some cases a Bank or Finance Company.  The Floor Planner may provide only Comprehensive Coverage, while the Collision, and sometimes the False Pretense Coverage is provided by the independent insurance company.

The Declarations Pages of some of ARM's competitors are particulary misleading.  They will display a limit, but there is no indication of which vehicles are actually covered.  The Producer must research all areas to determine what coverage he must provide.  Because of the Catastrophe issues in many areas of the Country, this research should start early in the application process, as we need time to get the most competitive quote possible for this part of the Dealerships Coverage.