Dealer Insurance Topics
Store Closings                                                                      February 2009
In This Issue
Featured Article
Possible Future Lawsuits
Property-Vacant or Unoccupied?
Quick Links
 
Featured Article
Keep all of your expired insurance policies permanently. We are seeing suits filed for alleged occurrences that happened 15 or more years ago. It might be a good idea to have them scanned and filed electronically on your system. Be sure this and all other information is backed up and you are able to retrieve it from the back up media or location.
 

Greetings!

Are you closing a store or have you closed one recently? Have you sold an operation but retained the corporation?  If so, don't forget to review the ongoing insurance issues. 
Possible Future Lawsuits:
 
Keep in mind that a lawsuit may be filed in the future for injuries or damage sustained by a vehicle you sold in an accident that happens after the liability policies on the discontinued operations have terminated. The fact that you sold the vehicle while the policies were in force does not trigger coverage under those policies. The trigger date is the date of the accident.
 
If you have continuing operations be sure to keep the discontinued operation named on your garage liability, umbrella, employment practices and pollution policy for the foreseeable future. If not, you need to have your insurance broker secure a discontinued operations policy for you.
Property-Vacant or Unoccupied?

 
Lexus DealershipWhat about the property? Did you retain ownership? If so, you will need to continue the property coverage or require the lessee to provide it. You will need premises liability. And if the property is vacant or unoccupied you will need to have your broker make sure the fact of vacancy or unoccupancy does not void coverage. 
Your potential exposures may vary based on your business structure such as type of corporation, LLC, partnership, etc. We suggest you review these issues, including any franchise, lease and other contractual agreements, with your attorney and CPA to determine your appropriate actions and needs.  

Sincerely,
 
Marvin E. McDougal, President
Automotive Risk Management


Automotive Risk Management & Insurance Services, Inc.

1919 Grand Canal Blvd. Suite C-7 Stockton, CA  95207
Phone:  (209) 473-8937 
Fax:  (888) 504-8062
Toll Free:  (800) 224-6363
 
Email:  arm@armonline.com