Insurance gaps can expose your dealership to lawsuits, inventory losses, regulatory penalties, and unexpected financial hardship. This comprehensive guide explains the seven most common insurance mistakes made by independent auto dealers, including inadequate liability coverage, failing to carry Dealer Open Lot Insurance, letting dealer bonds expire, ignoring cyber risks, and not updating insurance as your business grows. Learn how to protect your dealership and avoid costly

Open lot insurance is designed to protect a car dealer’s inventory from physical damage such as theft, vandalism, fire, hail, and other risks. It is a critical coverage for dealerships since inventory is often their largest asset. This guide explains what open lot insurance covers, what it doesn’t, how it differs from garage liability insurance, and how dealers can protect their vehicles and reduce risk.