How much does business liability insurance cost equipment dealers?

By Amanda Murphy | Posted on April 7, 2021

Equipment Industry| Ricker+Associates

If you’re managing an equipment dealership, you’re probably at least a little interested in cutting costs where you can. According to the 2020 AED Cost of Doing Business Report ($595 for AED members, $1190 for non-members), the cost of business liability and casualty insurance is slowly creeping upward as a percent of revenue. So how much does business liability insurance cost equipment dealers?

Business Liability Insurance Policies Are Complex

Insurance premiums for equipment dealers are calculated on a case-by-case basis because insurance policies are not a one-size-fits-all solution. They’re often complex agreements, driven by asset value and appetite for risk, among several other variables. It’s a lot to consider, especially if you are in the business of selling and renting equipment rather than reading and evaluating insurance policies. Unless you’re an insurance specialist, reviewing the details of coverage and shopping the best price around can be overwhelming.

Many dealers do not take the time to review insurance policies when they are due for renewal because it is intimidating and time-consuming. Competing priorities can leave you feeling like you have no options. So how do you keep from over paying for insurance? How can you reduce costs without reducing coverage? Having an insurance specialist who works on your behalf makes the review process much easier.

Insurance Consultants can reduce the cost of business liability insurance

There are many ways to help control business costs that cut into profit, and equipment dealers have many options. Securing the help of an insurance consultant is one way to reduce the cost of business liability insurance. Unbiased insurance consultants will review your policies, make recommendations for where to reduce or eliminate unnecessary coverage, and shop the best rates with no limits to specific carriers. Then, we educate you on your options, and you make the final decision with confidence. Consulting fees do not increase with insurance premiums because consultants work for you. Insurance agents, in contrast, make more money with higher premiums, so they likely won’t try to save you money in the long run.

Not every dealer will find an insurance consultant will be a good fit for them, and that’s okay. The most important goal is to make every dollar of revenue work as hard for your dealership as it can. If you decide that you want to see what we can do for you, we’d love to work with you.

If you’re interested in exploring how you can save your dealership thousands of dollars annually, contact us today.

[Related: Ricker+Associates Insurance Consulting from JT Bates Group will review your insurance policy to find out where you can save even more. Click here to learn more.]

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