What is one way dealers can protect themselves against liability claims?

One effective way for dealers to protect themselves against liability claims is through professional liability insurance or errors and omissions coverage. This type of insurance provides financial protection in case of claims made by customers alleging negligence, errors, or omissions in the services provided. By having this coverage, dealers minimize their financial risk and ensure they have resources available to defend against such claims or to settle them if necessary.

This approach is vital in the dealership industry, where transactions can be complex, and misunderstandings or mistakes can lead to disputes. Having appropriate insurance coverage helps dealers navigate these challenges by providing legal and financial support, allowing them to focus on their operations without the constant fear of potential liability impacting their business.

The other strategies, while helpful in their own ways—like signing transactions, setting refund policies, or hiring more staff—do not offer the comprehensive protection against financial loss that insurance does.