Auto Wholesaler Garage Liability

[bliss171]

I need some help trying to locate a carrier that will accept this risk. I have a group of auto wholesalers (auction to dealer and dealer to auction, no sales to public) that hold a wholesale license in one state but actually have their operation in another state. I have tried every market that I can think of, but cannot find anyone willing to look at this risk. Have already run to the surplus brokers and they haven't even been able to help me. Most of these guys are startup entities. What is killing the deal consistently is the fact that they are incorporated in one state but have their operation in another. Any help is appreciated.

 

[NortheastInsurance]

What States are we talking about here?

 

[djs]

I doubt its that they are incorporated in one state and operate in another, that is pretty common. Heck a LOT of companies incorporate in Delaware and operate wherever.

Its that they are LICENSED in one state and operate in another. This needs to be rectified and then you can place the risk. You'll need to be licensed in the state you are operating in. I'm not overly familiar with wholesaler licensing requirements, but I know its done on a state by state basis and is really only good in the state you operate in. You can buy and sell across state lines, but the transaction has to have an end (buy or sell) in your state I believe.


Dan

 

[bliss171]

This is in the Midwest. Thanks Dan. I think you are on the right track with your thoughts I think. These companies are Licensed and Bonded in one state, but other than a little office, their entire operation is conducted in whole in another state. Therein lies the problem. None of the carriers want to touch that.