Floor Plan Insurance

The average dealer spends more than 40 percent of their.

Floor plan insurance. It can be used as collateral. Floor planning is a form of financing for large ticket items displayed on showroom floors. To understand the various applications of floor plan insurance agents must be familiar with its components. For example automobile dealerships utilize floor plan financing to run their businesses.

Insurance that covers goods meant for sale that are in the possession of a retailer and have been accepted as collateral for a loan. Floor plan insurance allows you to effectively compete with the manufacturers insurance programs by offering your dealer a product to insure their vehicle inventory. If the goods are damaged or destroyed the lender is covered. Although floor plan insurance is used quite frequently many underwriters and agents do not completely understand how it works this article will explain the basic concept of floor plan insurance and describe several situations in which it is commonly used.

Definition of floor plan insurance. Damages are covered by the policy. The inventory can include cars trucks recreational vehicles motorcycles equipment and manufactured housing dealers.