Business owners must be observant and adaptable to find success in their industry. For boat dealers, this includes riding the fluctuations caused by seasonal markets and world events. 2020 saw record-breaking boat sales statistics. This is great news for boat dealers, but the challenges of managing these three insurance risks for a business during an industry boom are not easy to deal with alone.
1. Emerging Liability Risks
The large increase in boat sales implies that new demographics are becoming involved in boat ownership. This presents an evolving risk profile for which dealers will have to adapt their liability insurance coverage.
2. Supply Chain Issues
While the boating industry is booming, it can be difficult for supply to meet demands. Dealers face the risk of failing to fulfill orders in a timely manner, leading to financial loss that a well-ironed insurance policy can mitigate.
3. Future Declines
Any business will have highs and lows of activity. While boat dealers must prepare for a current boom by striving to keep an above-average stock, the demand will eventually fall off. An unforeseen drop in sales activity presents its own financial risk.
Boat dealer insurance exists to protect the financial assets of entrepreneurs within the industry. Unprecedented success comes hand-in-hand with unprecedented risk, so it’s important for dealers to adapt to new and emerging risks when circumstances change.