Dealerships Need False Pretense Coverage
If you’re an auto, boat or motorcycle dealer, you need False Pretense coverage.
False Pretense coverage responds to losses that arise out of voluntarily parting with a vehicle if induced to do so by any fraudulent scheme, trick, device or false pretense, or purchasing the automobile from a seller who did not have legal title. This type of loss is outside of the scope of theft and is not covered under your basic policy. False Pretense coverage is purchased as an optional coverage.
One of the companies we represent, Auto-Owners, offers False Pretense coverage under the dealer’s blanket policy. False Pretense can be purchased by separate endorsement, or False Pretense coverage is included when the Dealer’s Blanket Coverage Package is purchased. Both options provide this coverage for the policy’s entire inventory.
False Pretense is an important coverage for business owners who sell the following types of vehicles:
- Automobiles, including motorcycles, snowmobiles and ATVs
- Farm implements
- Campers/vacation trailers
- Watercraft
Additionally, False Pretense Coverage for Stock is included in the Garage Property Plus Coverage Package. “Stock” means merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping.
This coverage applies to False Pretense losses that may arise to boxed or crated inventory that is covered under your contents coverage. This is especially important for motorcycle, snowmobile or ATV dealers.
Auto-Owners provides broad protection for losses to your important inventory assets. Please contact our office for a complete explanation of the coverage and the cost for protecting yourself from losses arising from False Pretense.
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