What happens if your dealership insurance lapses? Learn how an insurance lapse can affect your dealer license, vehicle inventory, liability protection, and overall business. This guide explains what can cause a lapse, what to do if coverage expires, the difference between garage liability and dealer open lot insurance, and how dealers can prevent costly gaps in coverage.

Car dealerships face a variety of liability risks involving customers, employees, test drives, vehicle inventory, property conditions, and daily operations. This guide explains how dealers can reduce liability risks by maintaining a safe dealership lot, establishing test drive procedures, securing inventory, training employees, documenting incidents, controlling access to hazardous areas, and maintaining appropriate commercial insurance coverage.