Although many car dealership owners will say that their business is cars, the sales people understand that their business is people, and their feelings and needs pertaining to transportation. As in any consumer sales business, the most important part of the operation is closing the sale, and a keen knowledge of human dynamics (in relation to automobiles) is key. However, despite the talent and best efforts of the sales staff and managers, sometimes things go wrong with customer relations. The savvy car dealership owner will have a good car dealer insurance in place that can deal with these types of mishaps.
A first important consumer relations insurance is consumer complaint protection. Of course, the first action of a smart car dealership manager is to assume that when a customer complains that the manager should fix the problem and make it right with the customer. However, in a few cases, careful consideration can reveal that the customer may be unreasonable or have mental problems, or is trying to fraudulently manipulate the complaint system of the dealership, the local business bureau, or the government. In this case, the dealership can be liable for defense costs, which is covered by this type of insurance.
Another consumer-related protection is advertising liability protection. This can arise when advertising causes an injury through copyright or trademark infringement, or is otherwise accused of libel, slander, or invasion of property.
By maintaining car dealer insurance with these provisos, a dealership can best deal with these difficult issues.