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.

Starting a car dealership requires both a dealer bond and garage liability insurance, but they serve different purposes. A dealer bond is required by the state and protects customers, ensuring your dealership follows regulations and operates honestly. Garage liability insurance protects your business from accidents, property damage, or injuries related to dealership operations. Together, these coverages keep your dealership compliant and financially secure.

Why Surety Bonds and Commercial Insurance Matter Whether you’re an auto dealer , contractor , or small business owner , protecting your business from financial risk isn’t optional—it’s essential. Surety bonds and commercial liability insurance aren’t just about compliance; they’re about credibility, protection, and peace of mind. At All American Bonds and Insurance , we specialize in providing surety bonds and liability insurance tailored to the unique needs of the automo