Operating a multi-brand automotive dealership business is complex, spanning service, parts, financing, rental fleets, and more. Each brand within the dealership portfolio brings its own manufacturer requirements, operational risks, and compliance obligations.

In such a high-stakes environment, insurance isn’t just a regulatory box to tick – it’s a cornerstone of risk management and financial stability. The wrong coverage (or the wrong broker) can leave serious gaps. The right broker? The one that becomes a strategic partner.

Through our advisory work with dealer principals, it has come to light that for many principals, who run a business with many issues requiring immediate and daily attention, insurance may not be a top priority. The objective with this article is to help dealer principals evaluate and choose the right insurance broker. By outlining key considerations and the essential questions to ask, I hope you will be even more insightful and educated to make the right decision when it’s time to choose an insurance provider, renew a policy, or replace the one who is currently not delivering the best value.

Understanding your dealership’s specific needs: An internal audit

Before selecting your insurance expert, it’s critical to first understand your dealership’s own risk profile. Start by asking these foundational questions:

1. What are the unique risks associated with each brand you operate?

Manufacturer programs vary. EV-heavy brands may carry different technical risks than performance or economy brands. Inventory value fluctuations, franchise requirements, and brand-specific service models all shape your insurance needs.

2. What is the true scope of your operations beyond vehicle sales?

Do you run a service department, body shop, finance office, and even a rental fleet? Each component adds complexity and creates insurance touchpoints – from garage liability to property and workers’ comp.

3. What is your dealership’s risk tolerance?

Consider how much risk you’re willing to retain through deductibles or self-insurance vs. what you want to transfer. This will inform policy structure and premiums.

4. What is your long-term growth strategy?

Are you planning to acquire more rooftops? Expand digital retailing further or adding mobile service units? Are you currently, or do you plan on adding remote delivery to your offering? Do you know what implication that may have from a risk point of view? Choose a broker who can scale with you and proactively adapt your risk coverage as you grow.

Core competencies of an ideal insurance broker for multi-brand dealerships

Not all brokers are created equal—especially in a niche sector like automotive retail. Here’s what to look for:

1. Dealership-specific expertise

• A seasoned automotive broker will understand garage liability, dealer open lot, floorplan insurance, and manufacturer compliance nuances.
• They’ll have real-world experience handling claims unique to dealerships: theft from open lots, shop fires, cyber breaches, and loaner vehicle accidents.

1. Broad market access

• Your broker should bring options to the table – not just one or two carriers.
• They should have relationships with insurers that specialize in automotive and understand the industry’s complexity.

1. Risk management & loss prevention focus

• Beyond insurance, top-tier brokers help reduce claims in the first place.
• Look for value-added services like OSHA compliance reviews, safety training, and cyber risk assessments.

1. Claims advocacy & support

• When a claim hits, responsiveness is everything. A great broker offers dedicated claims’ professionals who work directly with adjusters on your behalf.
• They should understand how claims affect business continuity – especially if they interrupt service or shut down a key revenue stream.

1. Technology & data analytics

• The right broker leverages technology to optimize your coverage.
• Online portals, claims dashboards, risk benchmarking, and Certificate of Insurance access are now table stakes.

1. Strong communication & responsiveness

• You need a broker who speaks plainly and answers quickly.
• Ongoing service includes policy reviews, proactive communication about risk trends, and accessibility when it counts.

Essential questions to ask prospective insurance brokers

Before committing, vet your broker candidates with targeted questions:

1. “Can you provide examples of your experience working with multi-branded new car dealerships like mine?”
2. “Which insurance carriers do you typically work with for automotive dealerships, and why?”
3. “How do you approach risk assessment and loss control for a business with diverse operations?”
4. “Describe your claims process. Who will be our point of contact, and what’s your average response time?”
5. “What value-added services do you offer beyond just placing policies?”
6. “How do you stay updated on industry and regulatory changes that could impact my coverage?”
7. “How do you handle renewals, and what’s your process for reviewing our coverage each year?”
8. “What is your fee structure, and how are you compensated?”
9. “Can you provide references from other multi-brand dealership clients?”

The answers will help you separate true partners from transactional vendors.

Beyond the policy: The broker as a strategic partner

The best brokers don’t just sell policies; they should be chosen to become a key advisor with whom a relationship can be established based on trust.

They’ll help you:

• Forecast the insurance implications of expansion.
• Respond to economic and market shifts (like supply chain constraints or rising repair costs).
• Navigate regulatory updates from OSHA, the EPA, or data protection authorities.
• Align coverage with your overall business strategy and financial goals.

A long-term broker relationship can also lead to better pricing, deeper carrier trust, and fewer surprises.

Making an informed decision

Choosing an insurance broker is a very important business decision. It impacts not just your premiums, but your operational resilience, legal compliance, and peace of mind.

One of Mach10’s strategic alliances is Alliant Insurance Services, which is one of the top 5 largest commercial retail insurance brokerage firms in the U.S. I asked Tom Coyne, Sr. VP at Alliant, to share what a dealer principal should consider when choosing an insurance broker. This is what he suggested:

“Insurance is important and choosing who helps protect your business is even more important. At Alliant, we regard our number 1 job is to provide the business owner with peace of mind. When it comes to determining what insurance is needed and who to work with, we recommend potential clients conduct a full internal risk assessment, which we can help facilitate. We then ask them to interview brokers thoroughly – using the questions George has succinctly outlined in the article above. We recommend the dealer principal prioritize industry expertise, responsiveness, and strategic alignment. In the end, insurance shopping should not be a check-box exercise. Insurance is protection, and it’s important that the broker can deliver on that – eliminating unnecessary and expensive surprises down the road”.

When the right broker is in your corner, you can focus on what you do best, running a high-performing, multi-brand dealership, with the confidence that your risks are covered and your growth is protected.

Author: George Pero

George Pero, President & CEO of Mach10 Automotive, is an accomplished leader in the automotive industry. George began his career in the automotive retail sector, where he held various management positions. George’s career achievements include successfully launching, operating, and selling Auctions In Motion (“AIM”), a regional “mobile” auction company that brings the auction to the dealer. George has extensive knowledge & expertise in mergers & acquisitions in the automotive sector, having overseen more than $1 billion in transactions. His sales and general management experience coupled with his success in M&A activities led George to establish Mach10 Automotive, an automotive M&A firm offering a full suite of dealer performance optimization services.