QUESTION
How do I protect myself from an employee quitting after purchasing a car on my line of credit and never paying for the car?
Asked on Apr 24th, 2012 on Business Litigation - Georgia
More details to this question:
I am in the process of starting an Auto Broker Company, I will have 5 employees added under my dealers license, I will also have a line of credit for them to use for\
purchasing vehicles, they will pay me a % of every car they sell. What type of insurance do i need?
1 ANSWER
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It seems you have an unusual setup. If your line of credit is being used to purchase a car, then you should have title to the car, not your employee. You need standard auto dealer coverage. Your insurance broker should be familiar with both the property and liability aspects of the coverage. Presumably the property coverage is mandated by the lender who does your floor plan.
Answered on May 01st, 2012 at 9:11 PM