Reinsurance Specialties

Industries · Auto Dealers

Private reinsurance for auto dealers.

Dealers have run this playbook for decades. Roughly 90% of automobile dealers already use reinsurance for extended warranties: every warranty sold is premium into a company the dealer owns, and decades of loss data make the underwriting profit comparatively predictable. The Latitude Plan extends the same structure across the rest of the dealership's underinsured and uninsured risk.

The risk profile

Underinsured and uninsured risks we see in this vertical

  1. Administrative & regulatory actions
  2. Business interruption
  3. Contingent business interruption
  4. Contractual liability
  5. Cyber risk
  6. Employee dishonesty & crime
  7. Employment practices liability
  8. General liability (difference in conditions)
  9. Loss of a key business relationship
  10. Loss of a key employee
  11. Regulatory change
  12. Reputational risk
  13. Tax audit defense expense

Policies are priced by the carrier against an independent licensed actuary’s formal assessment of your underinsured and uninsured risks. Treat this list as a starting point.

The brief

A working example: a buy-here-pay-here operator grossing $3M expenses roughly $500K per year in premium across thirteen actuarially priced risk lines. That's well beyond what an F&I reinsurance position alone captures.

Our own co-founder operates five dealerships across nine franchises and has run private reinsurance structures in his stores since 2003: the structure we recommend is the structure we own.

Book a Call

One hour to find out what auto dealers premiums could be building for you.

A one-hour presentation of The Latitude Plan, then your questions. Your CPA or attorney is welcome on the line.

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