Insurance designed for tire dealers

Our insurance for tire dealers can help protect your business from the unique risks that come with servicing customers’ vehicles.

Insurance designed for tire dealers

Our insurance for tire dealers can help protect your business from the unique risks that come with servicing customers’ vehicles.

Why tire dealers trust us?

As a tire dealership, your customers entrust you with their vehicles, and you do your best to keep them safe and on the road. But sometimes even taking the right precautions isn’t enough. Despite your best efforts, things can go wrong, and if that does happen, it’s important to have a safety net in place. Our tire dealership insurance solutions are designed to protect your business against those everyday risks, with customizable policy options.

We’re industry experts

For over 100 years, we’ve been creating customized insurance solutions for contractors. So, we understand the daily risks you’re exposed to and are ready to help in any way we can!

Whether you’re a home builder, trade contractor, electrician or mechanical contractor, our insurance specialists have the knowledge, tools and experience to design customized solutions to protect your contracting business.

At Federated Insurance, we provide:

  • Customized insurance solutions designed for tire dealerships
  • Dedicated advisors who work with you directly
  • Expanded coverage options
  • Flexible payment and deductible options
  • Quick, no-hassle renewals

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Common claims for tire dealerships

Tire shops have a legal obligation to ensure that the correct tire is installed on a customer’s vehicle, that the tire doesn’t come off while driving, and that all safety systems are in proper working order. Customers rely on their tire dealer for advice, so the dealer’s expertise should extend to the selection of tires, and to situations where tires are unsafe or where there’s an underlying mechanical condition.

Liability claims in tire shops are often related to two issues: tires becoming detached from a moving vehicle or a vehicle’s safety system not working properly. Improper or unchecked torquing of wheel nuts are the most common causes of claims involving wheels detaching from moving vehicles. Whether due to a faulty product, or improper work, the consequences can lead to accidents, injuries, or even death.

Liability losses

Common liability risks include slips, trips, and falls, which can happen on uneven, wet, or icy surfaces on your property. If a customer is injured during a tire installation or as the result of a faulty tire installation, this coverage can help cover legal fees and medical expenses.

Property losses

Fire, wind, hail, and other weather-related events can damage your tire shop and temporarily shut down your business. As a tire dealer, you rely on your shop’s equipment and inventory to service customers’ vehicles. Any damage to these assets can significantly impact your bottom line.

Product liability

If a defect or malfunction in a tire causes injury or financial loss to a customer or bystander, you could be held liable for selling a faulty product that causes harm. This may lead to costly legal fees, and reputational damage.

Cyber

Even if your business isn’t highly technical, you still collect and store personal information about your customers, such as credit card numbers. If your business falls victim to a cyberattack, you could face revenue loss, stiff regulatory fines, and reputational damage.

Risk management tips for tire dealers

Tip #1: Use qualified personnel and equipment
Tire dealers are responsible for warning customers if an unsafe condition exists and recommending repairs or replacement of tires or parts. Ensure that only properly qualified personnel perform installation and servicing of tires and related equipment, and that appropriate tools are used for tire installation and servicing. Equipment should be maintained regularly, and a documented quality control program for services and products should be in place.

Tip #2: Ensure proper wheel torquing
When wheel nuts are removed for tire repair or replacement, it’s essential that the wheel nuts be torqued to the manufacturer’s specifications. As a tire dealer, your responsibility doesn’t stop there. Wheel nut tightness should also be checked after a certain period of use (CAA recommends within 100 to 150 km after a tire change). The customer should also be advised to return for a follow-up appointment.

Tip #3: Follow best practices with TPMS
While repairing a Tire Pressure Monitoring System (TPMS) is not mandatory in Canada, it plays an important role in overall vehicle safety where a TPMS is installed. A best practice is to ensure the TPMS is fully functional before the vehicle leaves the shop and to refuse service if the customer chooses to ignore or bypass the safety system. If you still proceed, consider having the customer sign a waiver to help limit your liability.

What type of insurance do tire dealers need?

Protecting against liability starts with commercial general liability (CGL) insurance, which is designed to protect your business from bodily injury or property damage claims. Commercial property insurance provides coverage for loss or damage to your property from events such as fire, theft, and vandalism.

In addition to these coverages, our toolbox is filled with customized policy options to ensure your tire dealership is properly protected. Some of these options include:

Professional liability:

Protects your business with installation, labour, and errors and omissions coverage.

Product Liability:

Protects your business from costs associated with lawsuits if a faulty tire causes an accident.

Business Interruption:

Protects your business from a loss of income in the event of an insured loss.

Equipment Breakdown:

Protects your business against loss to property and revenue resulting from breakdowns to equipment.

Garage Coverage (Customer Collision/Comprehensive):

Protects against damage to customers’ vehicles while in your care, including accidents, theft, fire, or other unforeseen events.

Crime:

Protects you from employee dishonesty, credit card forgery, and other types of theft by employees and others.

Cyber:

Keeps your business cyber safe with coverage for data recovery, customer breach communications, and e-commerce threats.

Company Vehicles:

Protects commercial vehicles used for deliveries and service calls.

Pollution:

Protects your business from the costly cleanup of environmental damage that results from the release of a pollutant.

Managing Risk

Our insurance for tire dealers is designed to deal with a wide range of risks. Whatever your needs may be, we’ll tailor an insurance solution that fits. Our Risk Service Specialists work closely with you to provide the advice, support, and training you may need to analyze the potential risks to your business. Knowing the exposures your tire dealership could face can go a long way in helping you avoid future losses.

Our Risk Services Specialists are available to help you create a customized action plan that will address those issues and help you improve your bottom line. Whether it’s sharing our risk management observations on your current business or providing you with timely tools and resources, we’re here to help you be as successful as possible.

Value-added services for your tire dealership

Once you become a customer, you’ll have access to an array of value-added services for your tire shop that include:

Superior claims handling: When it comes to handling claims, our expert claims professionals are here for you. With 24/7 claims support, we can resolve your claim and get your business back up and running as quickly as possible.

Dedicated advisors: With industry training and experience, our Commercial Insurance Specialists can design tailored insurance programs to fit the unique needs of your tire dealership, while also providing expert advice and support along the way.

Loss prevention expertise: Our team of highly trained loss prevention consultants can answer your questions and provide you and your employees with valuable risk management advice.

Safety programs: Complimentary safety programs can help keep your business and employees safe.

Trauma assistance: Confidential one-on-one counselling services can help you through an insured traumatic loss.

Latest blog posts for tire dealers

Check out our latest blog posts for tips on business, customer, employee, and operational safety for tire dealerships: