Powersport dealer insurance from the lot to the service bay
You carry high-value inventory, run a service department, offer test rides, arrange financing and sell parts and apparel. We build dealer programs for motorcycle, ATV, UTV, watercraft and snowmobile dealerships across the Pacific Northwest.
Each part of the dealership has its own exposure
Theft of inventory from the lot, a customer injured on a test ride, a technician error in the service department, a claim from your F&I desk: a general business policy isn't written for any of these. A single theft ring can take $200,000 in inventory overnight, and a test ride accident can produce a seven-figure lawsuit.
As a broker, we compare dealer-focused markets and structure coverage around how your dealership operates.
Core and specialized dealer coverages
Filter by type or search for a specific coverage.
Dealer Open Lot
Physical damage to inventory from theft, vandalism, fire, weather and collision, on the lot, in the showroom, at off-site storage and shows, and in transit. Covers new and used units, trade-ins and consignment vehicles. The backbone of a dealer program.
Garage Liability
The general liability form for automotive and powersport businesses: premises, service operations, products (parts and accessories), completed operations, test ride liability and legal defense.
Garagekeepers
Customer units in your care, custody and control: fire and theft while stored, collision during road tests, technician error, vandalism, weather and units in for customization. Garage liability excludes vehicles you're working on.
Commercial Property
Building and improvements, lifts, diagnostic computers and specialty tools, parts, accessories and apparel stock, furniture, fixtures and signage, plus business income and extra expense.
F&I Professional Liability
Claims from finance and insurance operations: financing documentation errors, extended warranty disputes, GAP and credit insurance issues and disclosure violations.
False Pretense
Losses when a unit is released against a fraudulent check, stolen credit card, fake financing documents, identity theft or a counterfeit cashier's check.
Dealer Plates / Drive-Away
Liability while units run under dealer plates: customer test rides, employee transport, deliveries, service road tests and show or event transport.
Workers' Compensation
Medical treatment, wage replacement, rehabilitation, disability benefits and employer's liability for hazards from heavy lifting, shop equipment and test rides.
Cyber Liability
Breaches of customer personal, financial and credit-application data: breach response, notification, credit monitoring, PCI-DSS fines and ransomware.
Commercial Umbrella
$1M to $10M+ in additional limits over garage liability, auto and employers liability, with additional defense costs.
Understanding dealer open lot coverage
Dealer open lot is built for inventory that constantly changes in composition and value. It is usually written on a blanket basis with a per-loss limit rather than scheduling each unit, so coverage adjusts as you buy and sell without constant policy changes.
Most policies cover inventory on your premises, in transit, at off-site locations such as storage, shows and events, and during customer test rides. Knowing exactly where and when coverage applies matters.
- Units on the sales lot and in the showroom
- Off-site storage, trade shows and events
- Transit between locations
- Trade-ins, consignments and demo units
- Customer test rides
Theft is the largest exposure. Powersport units are high-value, portable and often stored outdoors. Motorcycle theft claims average $47,000, and organized rings can take multiple units in a night. Good security lowers premiums and prevents losses.
Powersport dealers we insure
Motorcycle dealerships
Brand franchises to independent shops: sport bikes, cruisers, touring and off-road.
ATV & UTV dealers
Recreational ATVs, sport quads, side-by-sides and utility work vehicles.
Personal watercraft
Jet ski dealers, with water-specific risks, seasonal inventory and demo rides.
Snowmobile dealers
Seasonal inventory cycles and off-season storage.
Scooter & moped dealers
Electric and gas scooters, mopeds and urban mobility vehicles.
E-bike dealers
High-value e-bikes, batteries and related liability exposures.
Go-kart & racing
Competition vehicles and performance parts.
Service-only shops
Repair and customization shops, focused on garagekeepers and service liability.
Multi-line dealers
Motorcycles, ATVs, watercraft and snowmobiles under one roof.
Parts & accessories
Inventory, products liability and installation services.
Vintage & classic
Agreed value coverage for collectible and antique inventory.
Custom builders
Work-in-progress, customer deposits and completed custom builds.
How coverage applies when things go wrong
Illustrative examples of common dealership losses.
Six motorcycles stolen overnight
Thieves cut the fence and take six motorcycles. Despite security cameras, the bikes are never recovered.
Illustrative example. Real outcomes depend on the facts and your policy terms.
Coverage that satisfies your floor plan lender
Your floor plan lender owns units until they sell and requires proof of insurance protecting its interest. Your open lot policy must name the lender as loss payee with limits that meet its requirements. We work with dealers and lenders so certificates are right and no gap triggers a default.
Lender requirements
Loss payee status, coverage limits and policy terms.
Certificate issuance
Quick, accurate certificates for floor plan lenders.
Adequate limits
Coverage matching your maximum inventory value.
Automatic adjustments
Coverage that scales with inventory changes.
Common gaps and how to close them
Inadequate inventory limits
Limits are often set on average stock, not peak inventory. During busy seasons or after a large shipment, units can exceed the limit.
The fix: set open lot limits on maximum potential inventory, accounting for seasonal peaks, large orders and trade-in surges.
No garagekeepers coverage
Garage liability excludes vehicles in your care, custody and control, which is exactly what's in your shop.
The fix: add garagekeepers with limits based on the number and value of customer units you typically have in service.
Test ride liability gaps
Some policies exclude or limit test rides, one of the highest-risk activities at a dealership. A serious accident can exceed $1 million.
The fix: confirm garage liability explicitly covers test rides, use a test ride policy (license verification, waivers, defined routes, supervision) and add umbrella limits.
No false pretense coverage
Fraud losses are excluded from standard policies, so releasing a unit against a fake check, stolen card or fraudulent financing may not be covered.
The fix: add false pretense coverage sized to your average transaction, and verify large and out-of-state purchases.
Insufficient security
Underwriters price theft coverage on your security. Weak security means higher premiums, declined coverage or complicated claims.
The fix: fencing, lighting, cameras, alarms, cable locks and secure indoor storage for high-value units.
No F&I professional liability
Finance and insurance operations create exposure garage policies don't cover: misrepresentation, disclosure violations and product disputes.
The fix: add F&I professional liability if you offer financing, extended warranties, GAP or other F&I products, and keep training and documentation current.
Brokers who know dealerships
Dealer-focused markets
We compare carriers that write powersport dealer forms, not adapted auto dealer policies, so pricing reflects your operation.
Coordinated programs
Open lot, garage liability, garagekeepers, property and F&I structured together, with support through claims. Serving Pacific Northwest businesses since 1992.
Lender-ready certificates
Floor plan certificates issued quickly and accurately as inventory and lenders change.
Get your powersport dealer quote
Tell us about your inventory, service department and F&I operations and a dealer specialist will follow up.
Coverage descriptions are general summaries for education. They are not legal, tax or coverage advice, a statement of coverage, an offer or a binder. Scenarios and dollar figures are illustrative examples, not representations about any business. Coverage, limits and eligibility are governed by the terms, conditions and exclusions of the policies issued and are subject to underwriting.