Franchised · Independent · Powersports · Exotic · Floorplan Lenders
Dealer Physical Damage · All 50 States
Dealer Open Lot Insurance for Vehicle Inventory
One hailstorm can total dozens of vehicles overnight, and one flood can take out a whole lot. Dealer open lot insurance protects your inventory against weather, flood, theft and more, for franchised and independent dealers and the floorplan lenders behind them.
50 + D.C.States available
$100M+Policy capacity
A (XV)AM Best rated carrier
40+ yrsProgram tenure
In short: Nolasko Insurance Advisors, an independent agency in The Woodlands, Texas, places dealer open lot insurance, also called dealer physical damage or inventory coverage, for franchised and independent auto dealers, truck, powersports and exotic vehicle dealers, and dealer floorplan lenders in all 50 states and D.C. Coverage is placed through an AM Best A (XV) rated program carrier with more than 40 years in dealer physical damage.
What It Is
Your Inventory Is Your Largest Asset. Most Policies Leave It Exposed.
A dealership’s inventory can represent millions of dollars parked outdoors, exposed to hail, flood, wind, theft and vandalism. Dealer open lot insurance is written specifically for that exposure, covering the vehicles themselves, the cost of moving them out of harm’s way, and vehicles in transit.
Why Standard Policies Fall Short
Commercial property policies are built for buildings and equipment, not rolling inventory that changes daily. Open lot coverage is written for that exposure.
Who Needs It
Any dealer holding inventory on an open lot, franchise or independent, and floorplan lenders with a financial interest in that inventory.
How It’s Structured
All-risk coverage with per-vehicle and per-location limits, flat or percentage deductibles, and premium based on monthly inventory reporting with annual payment.
Coverage
What Dealer Open Lot Insurance Covers
All-Risk Coverage
Including flood, weather & quake
Hail, windstorm, flood and earthquake are covered on an all-risk basis. If a cause of loss isn’t excluded, it’s covered.
High Limit Capacity
$1M–$100M+ policy · up to $1M+ per vehicle
Limits scale from single-location independents to multi-rooftop groups, with per-vehicle limits high enough for exotic and luxury inventory.
Theft & Fraud
Keys, inventory fraud & transit
Coverage for stolen keys and key fobs, inventory fraud exposures and vehicles in transit, the real-world theft scenarios dealers face.
Spot Delivery
30 days after delivery
Vehicles delivered before financing is finalized stay covered for up to 30 days, protecting the dealer during the riskiest part of the sale.
Expanded Coverages
Insect, vermin & confiscation
Insect and vermin damage and government confiscation of vehicles, two exposures missing from most physical damage programs.
Extended Coverages
Impending damage, towing & cleanup
Costs to move inventory ahead of a named storm, plus towing, debris removal and pollutant cleanup after a covered loss.
Who Qualifies
Five Classes of Dealer Risk
If your dealership or lending operation fits one of these, we can usually turn a quote around quickly.
Franchised & independent auto dealersTruck dealersPowersports dealersExotic vehicle dealersDealer floorplan lenders
Optimal Risk Profile
- Inventory of $50M or less per location and $100M or less in total
- 5-year loss ratio at or below 40%
- Documented controls for key management, theft prevention, fraud, inventory tracking, transit and evacuation planning
New ventures are considered. If your profile doesn’t match exactly, call first. We’ll tell you what’s possible before you pull a full submission together.
Geographic Appetite
Available in All 50 States, Priced by Region
Appetite varies with catastrophe exposure, especially hail, tornado and flood.
Preferred
Most coastal and western states, New England and the Pacific Northwest. Lower catastrophe frequency, typically the most competitive pricing and broadest terms.
Selective
Parts of the Plains and transition zones with moderate severe-weather frequency. Available, but may need higher retentions or more information to bind.
Restricted
High-hail and tornado corridor states in the central U.S. Often still available with weather and flood deductibles, self-insured retentions or other risk-sharing structures.
Texas dealers: Texas falls in a mixed appetite area, and terms depend heavily on your county and hail history. Call before you submit so we can tell you what to expect for your location.
Getting a Quote
What You’ll Need to Submit
A complete submission is the fastest path to a quote, usually within a few business days. Call first and we’ll pre-screen your account in minutes.
- Dealer open lot application: contact us for the correct form
- Statement of values: current inventory values by location
- Supplemental questionnaire for your dealership type
- Five years of loss runs, valued within 90 days of expiration
- Month-end financials: first page, most recent
- Current inventory list: year, make, model and dealer cost
Also for Dealers
Coverage Beyond the Lot
Common Questions
Dealer Open Lot Insurance FAQs
What is dealer open lot insurance?
Dealer open lot insurance, also called dealer physical damage or inventory insurance, covers vehicles on a dealership’s lot against physical loss or damage from weather, hail, flood, earthquake, theft, vandalism and fire. It’s built for the inventory exposure standard commercial property policies aren’t designed to cover.
Does dealer open lot insurance cover hail and flood?
Yes. The program we place is written on an all-risk basis and includes flood, hail, windstorm and earthquake. Deductibles apply per vehicle and can be a flat dollar amount or a percentage of vehicle value.
What is spot delivery coverage?
It covers a vehicle for up to 30 days after delivery to a customer but before financing is finalized, the window when title hasn’t fully transferred and other coverage may not apply.
Can floorplan lenders get open lot insurance?
Yes. Finance companies providing dealer floorplan lending have a direct financial interest in the inventory securing their loans, and the program covers lenders as well as dealers.
How much does dealer open lot insurance cost?
Premium depends on total inventory value, location and catastrophe exposure, the deductible structure and your five-year loss history. Policies use monthly inventory reporting with annual payment.
Does the program cover exotic and powersports vehicles?
Yes. Auto, truck, powersports and exotic vehicle dealers qualify, with per-vehicle limits of $1 million or more for high-value inventory.
Who provides dealer open lot insurance in Texas?
Nolasko Insurance Advisors, an independent agency in The Woodlands, Texas, places dealer open lot insurance for dealers across Texas and all 50 states. Call (832) 592-1114.
Carlos Nolasco
Managing Member · Independent Agent · The Woodlands, TX
Carlos founded Nolasko Insurance Advisors in 2017 and places specialty and hard-to-access programs, including dealer open lot, downhole tool and construction hauler coverage, through top-rated program carriers that most generalist agents can’t access.
4 Waterway Square Pl, Suite 400, The Woodlands, TX 77380
Get a Dealer Open Lot Quote
Franchise dealer, independent lot or floorplan lender: call before you submit, and we’ll pre-screen your account in minutes.
For educational purposes only — not legal or insurance advice. Coverage terms, limits and eligibility vary by carrier and are subject to underwriting.