Automotive Insurance and Risk Management

Whether you are an original equipment manufacturer (OEM), an automotive component manufacturer, a supplier, or a dealer, the Gallagher automotive team has risk management solutions that support all aspects of the automotive industry, from designing to manufacturing to distribution.

Innovative solutions for a business on the move

As a business in the automotive and motorcycle industry, you need innovative program structures to meet the needs of a changing and complex industry. Gallagher's automotive team understands this ever-evolving environment, from natural calamity-exposed properties, transit damages, supply chain disruptions, management and workers liability, and increasing product liability and recall exposures to industry 4.0 smart factories with a higher risk of being exposed to cyber-attacks and data breaches.

To create the appropriate structure, we use our CORE360™ consultative approach to managing your total cost of risk while leveraging key data and analytics tools. Our team helps you with all aspects of operations, starting with understanding your goals and financial objectives. We'll conduct a thorough analysis of coverage needs and regulatory issues that may impact you, including agreements with 3rd parties such as suppliers, customers, dealers and transporters. Our process will uncover coverage gaps and looks for opportunities to optimize your total cost of risk.

A wide range of insurance coverage for the wide range of the automotive industry

Our automotive insurance and risk management team partners with customers, including but not limited to:

• Auto manufacturers of motorcycles, private cars and commercial vehicles
• Electric vehicle manufacturers and charging station suppliers
• Auto component manufacturers
• Suppliers, including but not limited to tire companies, battery manufacturers and automotive paint manufacturers
• Specialist software solution providers
• Auto dealers in motorcycles, private cars, used cars and commercial vehicles
• Auto leasing companies
• Large multi-location automotive service companies
• Financing companies for auto wholesale and retail manufacturers

Road tested solutions from experts

Our automotive insurance and risk management team brings decades of experience, having worked in auto manufacturing, auto dealers, and as specialty insurers and risk advisors. Our expertise in the auto industry enables us to create tailored programs based on your specialized area within the automotive industry. These programs include:

• Comprehensive property damage and business interruption program. Insuring physical damage to assets and the consequent business interruption exposure is at the core of protecting business continuity. Our coverage considers several factors, including suitable loss limits, probable maximum loss, retention limits based on the company's risk tolerance and contingent business interruption extensions for supply chain disruptions.
• Cyber gap insurance. Physical damage due to cyber attacks is a standard exclusion under property all risk and cyber policies. With increasing automation in the automotive industry, especially industry 4.0 smart factories, the exposure to physical damage from cyber attacks is heightened. We have niche solutions to bridge the gap between property and cyber policies by way of cyber gap insurance.
• Product liability and product recall program. Automotive liability and recall claims can potentially be catastrophic and pose existential threats to businesses. In addition, the increased use of software in vehicles, such as ADAS and IoT in smart-connected vehicles, increases the risk of product failure and resulting liability and recall claims. Our product liability and product recall programs are designed to be fit for purpose and delivers when it matters the most. Our subject matter experts have deep domain knowledge and access to niche underwriting markets to deliver wider coverage and higher limits with wordings that provide contract certainty.
• Comprehensive transit insurance program. The automotive industry involves significant physical movement of goods, from suppliers to dealers. New direct-to-consumer business models increase the involvement of automotive original equipment manufacturers in last-mile deliveries. In addition, economies of scale necessitate the movement of vehicles from manufacturing facilities in low-cost countries to worldwide consumer markets, increasing the transit risks. Our comprehensive transit insurance package covers all legs of the journey with due attention to aggregation risks at key storage points.