PRODUCT: P-c program designed specifically for auto, truck and RV dealers
COMPANY: Hiscox Insurance Company, Inc.
BEST RATING: A, size XI
AVAILABILITY: Retail agents
FOCUS: V3 Insurance Partners has made product improvements and expanded the geographic availability of its Dealer Vantage Program: a multi-line p-c program designed specifically for non-franchised auto, truck and RV dealers. “While there are a few carriers who specialize in dealers, our program is geared exclusively to the needs of non-franchised dealers,” says Donald Barrand, V3 senior vice president.
It’s a niche Barrand knows well. He has specialized in non-franchised automotive dealers since 1989, and V3 has offered its Dealer Vantage Program since 2010. The program provides broad protection with enhanced liability and property coverage endorsements, as well as seven dealer E&O coverages. V3 recently improved the program by adding “a number of coverages not available anywhere else to help dealers minimize exposure to unexpected loss,” Barrand says.
Improvements include blanket comprehensive coverage for dealers with multiple locations and a peak season endorsement designed to minimize coinsurance issues. “Given our assortment of leading edge coverage enhancements, fast quotes and policy issuance and up-front commissions,” Barrand says. The V3 program “fits well into the small- and mid-range client niche” for independent agents and brokers. While the program is sold predominantly by independent retail agents, V3 has recently expanded into the Western states, with a focus on California—“we have appointed a couple of wholesalers for areas where we have little penetration.”
UNDERWRITING: The Dealer Vantage Program is designed specifically for non-franchised auto, truck and RV dealers who specialize in sales. It is not available to ATV, boat or motorcycle dealers. Some repair and service work is eligible, but auto repossessions or auto transporting operations are not. “We offer up to $1 million in liability limits for dealers and have authority for up to $10 million umbrella limits in most states,” Barrand says.
The company also provides inventory up to $2 million per location and $5 million per policy, along with garage keepers legal liability, E&O, property, crime, inland marine and property up to $2 million per location depending on construction, protection class and sprinkler protection. “For the dealer’s open lot (DOL), we have too many deductible options to list,” Barrand explains. “Which means we can always find the right one for an insured’s operation.”
Coverage highlights include: garage liability limits to $1 million and $3 million aggregate, umbrella limits up to $10 million in most states, property limits up to $2 million based on construction and protection class and dealers open lot coverage up to $2 million per location and $5 million per policy. The dealer E&O endorsements include: consumer leasing and truth in lending, odometer and prior damage disclosure, dealership insurance agents, title, employment benefit liability, retail customer complaint legal defense reimbursement (not all states) and dealer customer credit privacy. The new optional blanket compensation coverage for DOL “helps minimize coinsurance penalties when moving inventory between locations,” Barrand says, and the new peak season endorsement for insureds with known inventory spikes eliminates the need to over-insure for limited time periods.
The liability enhancement endorsement includes: automatic coverage for loaners to customers up to 30 days, loss of use expenses, government confiscation coverage up to $10,000, bail bonds up to $5000, coverage for temporary or incidental transport drivers and $2,500 for defined electronics equipment. The property enhancement endorsement includes: property boundary extended to 500 feet, reward coverage for specified losses or damage to property, automatic business income and extra expense coverage up to $2,500 and employee tools coverage up to $500 per employee and $2,500 per occurrence ($50 deductible applies).
MINIMUM PREMIUM: None.
TARGET: Non-franchised auto, truck and RV dealers. “Most other companies want the larger dealers—we prefer the small- to mid-sized dealers who may have trouble finding the right coverage for their operation,” Barrand says. “The ideal insured is a non-franchised dealer with little to no repair work and a minimal furnished auto exposure.”
COVERAGE TERRITORY: Available in 33 states including AL, AZ, AR, CA, CO, FL, GA, ID, IL, IN, KS, KY, LA, MD, MS, MO, NV, NJ, NY, NC, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI and WY.
CONTACT: Donald Barrand, senior vice president, national practice leader, transportation; V3 Insurance Partners, 10500 Barkley, Suite 112, Overland Park, KS 66212; 913-297-7468.
Ronimarie Acord is an IA contributor.
