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.

Stressed car dealership manager reviewing rejected loan paperwork and overdue notices at his desk with a “Bad Deal” warning on the computer screen, illustrating the financial impact of a failed vehicle transaction.