Question 1

What is dealership insurance?

Accepted Answer

Dealership insurance is a package of business coverages built for licensed auto dealers — typically including garage liability, dealer's open lot or physical damage, garagekeepers, workers' compensation, and an umbrella. The exact combination depends on the dealership's operations, location, and Nevada licensing requirements.

Question 2

Do I need a Nevada dealer bond?

Accepted Answer

Yes. Nevada licensed vehicle dealers are generally required to maintain a $100,000 surety bond as part of DMV licensing. The bond is separate from your insurance and protects the public — not the dealership.

Question 3

What is the difference between garage liability and garagekeepers?

Accepted Answer

Garage liability covers third-party bodily injury and property damage that arises out of dealer operations. Garagekeepers covers physical damage to customers' vehicles while they're in your care, custody, or control. Most dealers need both.

Question 4

What coverages does a Nevada dealer need?

Accepted Answer

Most Nevada dealers carry garage liability, dealer's open lot or dealer physical damage, garagekeepers, workers' compensation, and a commercial umbrella. The Nevada DMV also requires a $100,000 dealer surety bond before licensing.

Question 5

What affects dealership insurance cost?

Accepted Answer

Cost depends on coverages selected, limits, deductibles, lot size, vehicle inventory value, payroll, employee count, prior claims, dealer experience, and underwriting. There is no single "dealer rate" — quotes are built from the dealership's actual operations.

Question 6

Do Nevada dealers need workers' compensation and an umbrella?

Accepted Answer

Most Nevada dealers with employees are required to carry workers' compensation, and many add a commercial umbrella to extend liability limits above garage liability and auto. Both are typically reviewed alongside the rest of the dealership program.

Question 7

How do I start a Nevada dealer insurance review?

Accepted Answer

Gather your current declarations pages, dealer license information, employee count and payroll, lot details, and any open claims. An advisor can then walk through coverages, limits, and the dealer bond in one structured review.

Nevada dealership insurance & dealer bond FAQs.

Ready to review your Nevada dealership coverage?