What you need to know
Motor vehicle dealers face a set of insurance exposures that are unique to the industry. The combination of stock on the yard, vehicles driven on dealer plates, customer vehicles in your care, and the liability that comes with a busy retail operation means that a tailored programme is essential. Standard commercial wordings leave significant gaps for motor vehicle dealers.
Stainton & Co. works with dealers across New Zealand to arrange insurance programmes that address the specific risks of the motor vehicle industry from small independent yards through to larger franchise operations.
What we help with
A comprehensive motor vehicle dealer insurance programme, designed to protect your vehicle stock, premises, dealer plates, and customer vehicles in your care — ensuring that every aspect of your operation, from the yard to the road, carries the coverage a busy automotive business demands.
What's generally covered
Dealer Plates (Road Risks)
Covers vehicles driven on dealer plates for loss or damage and third-party liability. Includes vehicles being driven for demonstration, delivery, or trade purposes. Cover responds on the vehicle rather than the driver essential for any dealer operation.
Stock on Yard
Covers the dealer's vehicle stock for physical loss or damage while on the premises. Covers fire, storm, flood, malicious damage, and theft. Sum insured should reflect the maximum value of stock held at any time.
Test Drives
Covers third-party liability arising from vehicles being driven by prospective customers during test drives. This is a distinct exposure from dealer plates and requires specific cover.
Public Liability
Covers legal liability for bodily injury or property damage suffered by customers, contractors, or members of the public on the dealership premises.
Statutory Liability
Covers defence costs for regulatory proceedings under statutes including the Motor Vehicle Sales Act and Consumer Guarantees Act, along with any insurable fines or reparation costs ordered by the Courts. Fines imposed under the Health and Safety at Work Act 2015, Employment Relations Act 2000, or any legislation where indemnification is prohibited by law are not covered.
Employers Liability
Covers legal liability to employees including sales staff, workshop technicians, and yard staff for claims that fall outside of ACC. Essential for any dealership with paid staff.