Protecting Your Business from Auto Theft: What Insurance You Need
Protecting Your Business from Auto Theft: What Insurance You Need
Auto theft continues to threaten businesses across the country. In 2024, over 850,000 vehicles were reported stolen, according to the National Insurance Crime Bureau (NICB). For dealerships and commercial businesses, these losses can be devastating. Fortunately, the right insurance can help protect your operations.
Why Auto Theft is a Growing Concern
Thieves often target vehicles for parts, resale, or even criminal use. Vulnerabilities in vehicle technology have made some models easier to steal. Businesses with fleets or high-value vehicles must act fast. Relying on luck isn’t an option in today’s environment.
What Insurance Covers Auto Theft?
First, you need comprehensive coverage under your commercial auto insurance policy. This coverage pays for stolen or vandalized company vehicles. It applies whether the theft happens overnight or during working hours. Without it, your business pays out of pocket.
Next, consider garagekeepers coverage if you store customer vehicles. This insurance protects you when a customer’s car gets stolen under your care. It’s ideal for repair shops, service stations, and valet services.
Dealerships need a specialized policy called Dealer’s Open Lot (DOL) coverage. This covers the entire inventory on your lot from theft, fire, or vandalism. Don’t confuse it with general liability—it only protects the cars for sale.
What About Stolen Tools or Equipment?
If thieves steal tools or cargo from your vehicle, standard auto insurance won’t cover them. Instead, buy inland marine insurance. This policy protects valuable items transported or stored in your vehicles. It’s crucial for contractors, HVAC techs, and mobile service providers.
Conclusion
Auto theft hits fast and hard. However, with the right insurance, you can recover quickly. Every business should assess its risks and update its coverage annually. Protecting your assets ensures you stay focused on growth, not recovery.