The many moving pieces of auto dealerships put them in a vulnerable position for fraud. The increased risks they face make auto dealership liability insurance a must-have. These three fraud risks should be addressed by the company’s risk management strategy.
Auto dealerships transfer a lot of money using electronic funds transfer. These instant money transfers happen multiple times every day as people buy and sell their vehicles. Even a wrong keystroke could cause the money to move into the wrong account. Most of these errors are irreversible putting the dealership at risk.
An effective risk management strategy includes internal controls to provide checks and balances throughout the company. These controls can sometimes be overlooked or forgotten in the busyness of the day. However, it is crucial that staff realize the necessity of following the internal controls in place to minimize fraud.
Most auto dealerships consist of a variety of parts from new cars to service bays. Each piece adds risk to the company. As seen on https://www.arroyoins.com, you need to protect everything in the business from inventory to service areas to the showroom floor.
These are only three fraud risks auto dealerships face. Each risk increases auto dealership liability. The right insurance portfolio addresses these risks and works with your risk management strategy to protect the business.